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Stock Index Futures Market Management Law Research In China

Posted on:2013-05-18Degree:MasterType:Thesis
Country:ChinaCandidate:J ZhouFull Text:PDF
Abstract/Summary:PDF Full Text Request
Since its arising from market demand for risk management of stock, stock index future has developed rapidly in capital markets around the world, and has become a mainstream in the global financial derivatives market. Stock index futures was officially launched in the China Financial Futures Exchange on April8,2010, and CSI300stock index futures contracts was listed for trading on April16, which marked a big step forward of China’s financial futures market.Due to the special trading rules, stock index future is a double-edged sword. On the one hand, stock index future provides risk-averse approach for the stock spot market. On the other hand, it brings inevitable high-risk and highly speculative to stock index futures market. As an emerging futures market, China’s financial futures market system is far from sound:relevant laws and regulations have not been perfected yet, and regulators are short of administrative experience. Therefore, guard against the risk of stock index futures market should be top priority of the market supervision. Establishing and improving the stock index futures market risk prevention management admit of no delay, for the stable and healthy development of China’s stock index futures market.In addition to the introduction and conclusion, the paper is divided into four chapters.The first chapter, divided into three sections, is the basic generalization of the paper. The first section introduces the concept and characteristics of stock index futures, and clarifies the functions of stock index futures; including hedging, risk investment, risk-averse, price discovery, resource allocation etc. The second section describes the characteristics and classification of the risk of stock index futures market. The author discusses the objectivity, amplification and controllability of the risk of stock index futures market. The third section demonstrates the necessity of tighten up the legal system in China’s stock index futures market in the view of the high-risk of the stock index futures transaction, development status of the stock market and the perspective of jurisprudence, and then describes the three major principles of legal system stock index futures market, setting a programmatic guide for further improvement of relevant financial laws and regulations.The second chapter describes the management system of the stock index futures market in the United States, Britain and Japan, pointing out three inspirations for China:sound legal system, well-defined supervision mode and effective risk prevention system.Chapters Three and Four are the focus of this article. On the basis of elaboration of the course of development of China’s stock index futures, the paper analyses the management status of China’s stock index futures market from the aspects of the existing system of rules and the current supervision mode. The author demonstrates the management deficiencies and proposals for improvement in three dimensions. At the macro-legislative system level, the current legislative system of stock index futures is chaos and confused lack of the basic law of Stock index futures; there is a conflict between the relevant laws and regulations; legal validity of relevant regulations is insufficient. We should accelerate the introduction of the basic law of stock index futures; endow relevant regulations with legal force and perfect the legislative system. In the level of the micro-legal system, the defects among the system of market access, forced liquidation, information disclosure and dispute resolution require should be immediately improved. In the level of the supervision mode, the main problems include:ambiguity of power and duties of regulator, insufficient of regulatory means, deficiency of self-discipline of the China Financial Futures Exchange and China Futures Association. We should pay more attention to legal means and economic means in the supervisory process, establish a market linkage supervision mode cross the stock market and stock index futures market, and strengthen self-regulation of Futures Exchange and China Futures Association.
Keywords/Search Tags:Stock index futures, Risk prevention, Market administration
PDF Full Text Request
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