Financial Derivatives Risk Prevention Exploration

Financial derivatives came into being in 1970s, developed in 1980s and prevailed in 1990s. At present,there are more than 50 exchanges in which derivatives dealing can be done all over the world. The financial derivatives in which financial option occupies a leading position have developed into ten trillion dollars'dealing scale. As instruments for fending off the risks, financial derivatives have developed in our country to some degree and have formed the preferable barter time bargain market. However, these primary financial derivatives can not meet the needs of economy's development in our country. In recent years, experts and professionals put forward the advice for developing our country's derivatives market constantly. In April and July of 2005, after the performance of stock authority's separately-placement and reform on currency rate forming mechanism, there is a growing voice for establishing the financial derivatives market. So we can say that to establish the financial derivatives market is a certain tendency. However, financial derivatives'dealing is a"two-edged-sword". On one hand, they can provide many instruments for us to avoid the risk. But on the other hand, once its application fails, it will become the risk root for finance failure. The"balin bank"accident and"zhonghangyou"accident both become the classic cases for failure dealing in financial derivatives. The paper, based on the detailed analysis for these accidents, explains the reasons and puts forward some concrete counter measures. So it provides some reference for our country to establish the financial derivatives market.The paper makes use of information economics and researches the possibly existing risks and risks'avoidance in financial derivatives dealing. It consists of four chapters as follows:...