The Regulation Of Financial Derivatives Related Legal Issues

Financial derivatives is the product of the development of modern financial industry. Since its birth, it has dual natures:on the one hand, it improves the economic and financial system, efficiency of resource allocation, promoting economic prosperity and expansion. On the other hand, due to excessive innovation and speculation intensified financial turmoil, and indirectly contributed to the 2007 sub-prime mortgage crisis. Financial institutions have closed down, stock prices falling, people on the financial market, have a serious shortage of confidence in economic prospects, This rare crisis evolved from the sub-prime crisis and triggered a global financial turmoil, world economic growth slowing, or even facing long-term decline. The crisis attacks the global economic and financial development.At present, the healthy development of financial derivatives has attracted extensive attention, how to better play the positive role of financial derivatives, which is the problem in the future development of financial derivatives and financial regulatory system that need to solve. Therefore, once again, how to effectively regulate the financial derivatives has become a focus of the theoretical circle among governments in the world.The first chapter describes the theory of financial derivatives, as the basis for the full text. The financial derivatives is a financial contract whose value is determined by one or more of the underlying asset or index value, from a legal point of view, reflecting the financial derivatives transactions in financial derivatives claims and liabilities between the parties. This chapter also confessed that the classification of financial derivatives and financial derivatives, leveraged nature, virtual sex, sex and other economic characteristics, and future promise as sex, choose the debt and look forward to contractual and other legal rights, and features.The second chapter describes the financial derivatives business risks and legal risks, focusing on analysis of derivatives trading nature of the contract and participation in financial derivatives transactions subject qualification and other issues. As the financial derivatives inherent complexity and high-risk nature of its national financial institutions and financial system a threat to stability and development, therefore, countries and regions, strengthening the supervision of financial derivatives.The third chapter summarizes the United States, Britain, Hong Kong and Japan-related regulation of financial derivatives, the legal system, as the fourth chapter draw on the basis of comparison. From the above countries and regions in this chapter, the financial derivatives regulation of financial derivatives, the regulatory bodies, as well as for their own regulation of financial derivatives to take policy measures in terms of the regulatory status of these countries have done a summary and evaluation. Concluded that a country or region of the regulatory system should be based primarily on the country or the region, and the derivatives market realities, to develop suitable to their own regional development of financial derivatives regulatory system.The fourth chapter describes the development of China's financial derivatives, and its regulation of the history and current situation, from our regulation of financial derivatives and financial derivatives, the main regulatory supervision of laws and regulations so that my country's lack of supervision of financial derivatives, for formulating a sound regulatory system of China's financial derivatives and the derivatives market should be operating system of prudential supervision, crisis relief and delisting the legal system, as well as cross-border supervision of financial derivatives market, legal system, three aspects of starting to establish a unified regulatory system,Innovations of this article is that through the world's major countries and regions in financial derivatives comparative analysis of the regulatory regime, as well as academic circles as to how China's current regulatory approach to achieve reunification of the two views of thinking, that our country both in the China Insurance Regulatory Commission, China Banking Regulatory Commission, the Commission on the establishment of a body responsible for overall supervision of the financial markets, or the establishment of a coordinating committee is responsible for the idea of a dedicated coordination and communication in our country's conditions are not yet mature, and therefore proposed that the regulation of financial derivatives more feasible proposal is the China Securities Regulatory Commission of China's financial supervision and regulation.