Financial Derivatives Risk Supervision Legal System Perfect Research In China

Financial derivatives produced in the1970s, it is based on the financial products on new products, to form the derivatives of financial products. Financial derivatives with virtual trading partners, value constraints, leverage, tense the reflective features in the future as well as off-balance sheet, these characteristics determine the trading of financial derivatives has a very high risk and the risk of highly contagious and systemic outbreak. With the rapid development of financial globalization, financial derivatives in the field of financial sector occupies an important position, once the derivatives market to produce a risk, it is likely it will spread to a country’s financial sector and even the global financial safety in the field, the worst case, may will lead to the global financial crisis. The2008U.S. financial crisis and China in recent years due to lack of supervision caused by the derivatives market risk case fully proved, must be effective supervision in order to make financial markets safe, stable operation of the risks of derivatives. At present, regulation of the derivatives market risk countries are different, but with the in-depth and practical exploration of the theoretical research on the risks of derivatives markets to be correct supervision is the general trend, and international cooperation in the supervision of more and more countries sure.The paper includes the introduction is divided into four parts.The first part is the introduction part. The second part is a discourse on financial derivatives and their risk characteristics and the regulatory model. Promise into a virtual trading partners, value constraints, leverage, future tense nature, reflected in the balance-sheet and other derivatives determine the characteristics of the complexity of derivatives risk, zoom, hidden and unexpected infectious and systemic features. Orderly operation of the order to ensure the derivatives market, derivatives market relatively mature U.S. and the UK government regulation and self-regulation is the combination of the dual regulatory mode and a single regulatory model of effective supervision to maintain the safety of the derivatives market stability.The third part is the review of the development of China’s financial derivatives and derivatives risk regulatory legal system. In the legal system for derivatives regulation development process, China has always been very cautious," accustomed to after the legislation, there is no uniform regulatory approach, the lack of a comprehensive legislative system, and there are many problems in the specific regulatory regime.The fourth part is to improve China’s financial derivatives risk regulatory legal system. Draw on the advantages of foreign financial derivatives risk regulatory model, the legislative system as well as specific regulatory legal system, combined with the reality of our country and that China should establish the dual supervision of both government regulation and self-regulatory model, and to speed up legislation on the regulation of derivatives trading, improve related laws and regulations, strengthen cooperation and coordination with the international regulation of derivatives risk, from a legal point of view to create a safe and stable environment for the development of derivatives markets.