Government Regulation Of Financial Derivatives Markets Measures

Since the 70s of the 20th century, the proliferation of financial derivatives to become a prominent phenomenon in the financial sector.Under the impetus of the economic scale, the variety of financial derivatives, more and more and more complex structure, the scale is also growing.Whether you like it or not, financial derivatives, such as the air has infiltrated into our lives normally, not that people can not imagine a world of financial derivatives, if it can bring the world of financial derivatives transactions are stopped, thenI am afraid to back the world economy has more than 50 years.And at this stage, the development of China's financial derivatives market is still in the backward, stagnant stage, the financial derivatives market size and level of development is far lower than China's economic and social development situation.Accelerate the development of China's financial derivatives market, market-oriented economic structure for improving the objective requirements of the financial markets, but also the practical needs of financial deepening in line with the reality of China's economic development.The financial derivatives is a double-edged sword: on the one hand, and the original intention of the design principle, futures, options and other derivatives is a hedging tool is used to circumvent the relevant primary products in the circulation of the risk; the other hand itswill also have a speculative market risk, operational risk, credit risk and liquidity risk, risk management deficiencies can cause changes in primary product prices, resulting in huge loss of funds, increase the instability of financial markets, and even trigger a financial crisis.Many large international appalling losses and financial crises are associated with this.Such as the Barings Bank incident in 1995,2001, the world's largest energy trader-the bankruptcy of Enron in 2004, China Aviation Oil Singapore Corporation of huge losses in the event, in 2008 in the U.S. subprime mortgage crisis triggered by the financial crisis isoverexpansion of the financial derivatives markets lead.Therefore, how to grasp this "double-edged sword", to better promote the overall development of the financial system has become a top priority to its strict supervisionhas become a national financial regulators are facing urgent tasks. Moreover, China'sfinancial regulatory system is not sound, in the supervision of the financial derivatives market, primarily by government regulation, business management and industry self-regulation of three management levels, which dominate government regulation. In the current financial reform, government regulation is not fully reflect the leading role, there are still laws and regulations lag, lack of coordination between agencies, information disclosure system is not perfect and imperfect mechanism for lack of sanctions.This paper intends to government regulation of financial derivatives and related concepts explained, pointing out the importance of government regulation, and its mainfunctions and roles, and the current government regulation of financial derivatives market analysis of measures to identify its shortcomings, And learn from developed countries, government regulation in the financial derivatives market experiencemeasures, China's financial derivatives market, the government put forward a soundregulatory measures proposed, the main is to improve the laws and regulations,strengthen information disclosure, rigorous examination of financial derivatives to provide appropriate platform for innovation and play Supervision function. To the Improvement of financial derivatives market to contribute to government regulation.