Legal System Of China's Financial Derivatives, Risk Control Study

Since 2007,the global financial crisis induced by the American sub-loan crisis has made the people see the great destructive power of financial derivatives,it sounded the alarm for the people once again. This crisis warned us that, the innovation and the development of the financial derivatives can also be a channel to spread risks at the time of flourishing the capital market and preventing risks. on the one hand,Financial derivatives has the function of price discovery and avoiding financial risks ,but at the same time ,there also cxist credit risk, market risk, operational risk , legal risk and so on. How to construct effective legal supervision systerm on financial derivatives is to be important issue to be settled urgently in the field of finance and law all over the world.In China, the development of the financial derivatives market is still in the relatively backward status, and it is far from being Commensurate with the China's economic and social development situation. In this background, maintaining the stability of our country's financial markets, preventing the risks of financial derivatives, drawing on international experience properly to design the overall legal supervision framework of China's financial derivative risks has important theoretical value and practical significance. This paper adopts the comparative method, proceeding from actual conditions of China, drawing on the successful experience of the other countries, learning from failure, thus puts forward my own ideas on the construction of the legal supervision system of financial derivative in China.The paper includes three parts: the preface, the text and the epilogue. The main text part is divided into five parts:The first part, an overview of financial derivatives. this part starting from the basic knowledge of the financial derivatives,defines the concept of the financial derivatives, classifies it according to different ways, summaries its legal Characteristics and makes an analysis of its function. Also in this section, we focus on the risk types and the main features of financial derivatives.The second part, analysis of the theoretical basis of the legal regulation on the financial derivatives risks, and study separately from the financial and the jurisprudence point. It provides theoretical basis for legal regulation.The third part, a comparison and consideratin of the legal supervision system on financial derivatives risks. It has compared the legal supervision systerm of the major developed countries and regions,from the point of legal mode and legal system ,expect to offer theoretical support and practice experience for construction of the supervisory system of China. In addition,this part also instroduces main provisions of the Basel Committee and the International Swaps and Derivatives Association on risk minitoring, It has important significance for our country to formulate and improve relevant laws and regulations.The fourth part, analysis of the legislative history and the status quo on supervision of financial derivatives risk of our country. this part introduces legislative History of our country on financial deri vatives risk supervision and assessment the status quo of Chinese legal system, pointing out the China's current disadvantages on the models of legal supervision, legal system and regulatory principles.The fifth part, the constuction of the legal supervision system on financial derivatives risks monitoring. In this part, put forward my own views on constuction of the legal supervision system. On the basis of draw on international experience and the reality of China, pointing out the regulatory principles should be established. from the concrete measures, ponting out the construction of the models of legal supervision,the legal system and the strengthening of international regulatory and other measures to to solve the existing problems.