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The Legal Supervision Of Financial Innovation Products

Posted on:2014-02-25Degree:MasterType:Thesis
Country:ChinaCandidate:Y LiFull Text:PDF
GTID:2246330395993234Subject:International law
Abstract/Summary:PDF Full Text Request
With the continuous progress of human society,the role of finance in economic andsocial development is important. In today’s society, finance has gradually become the core ofmodern economy industries, efficient allocation of social resources led. Mature financialmarkets from the developed countries, the economic development process contains twoaspects, namely the traditional financial markets and derivatives financial markets. In thefinancial markets, the products and scope of the derivatives market continue to be expanded.Traditional financial products market as the basis for the development of financial markets inderivatives, derivatives trading market as a traditional financial products market a strongcomplement to two market mutual development, and jointly promote the economic progress.In addition, the mature financial markets do support the need to continue to sound financialsystem, to achieve this goal, on the one hand, the need to self-regulation of financial markets;on the other hand government departments also need timely, modest regulation of financialmarkets.Half of the20th century began; the world’s financial economy is progressing towardsinternationalization and globalization. Rapid economic development is inseparable from thesupport of the financial sector, and was followed by financial innovations extensive and a lotof use. In the process of financial liberalization, facing financial security issues associatedwith the degree of openness gradually deepened slowly highlights the products of financialinnovation is no exception. While the transaction of the financial innovation products greatlyimprove the flexibility and effectiveness of the financial risk management, it also bring a lotof risk to users, Including market risk, credit risk, liquidity risk, operational risk, settlementrisk and legal risk, even more loss event could trigger systemic risk in the financial market.Various risks interact, trading doubled the risk of financial innovation products increases, notonly will give traders cause losses, and even make serious unrest throughout the financialmarkets, Therefore, the regulation of financial innovation products has attracted the attentionof the national regulatory authorities. Especially the outbreak of the U.S. subprime mortgagecrisis, let us see the financial regulation in financial innovation products in the transaction process is extremely important, if not effective regulate financial innovations, financialsecurity issues will be gradually expanded, and will eventually lead to a comprehensivefinancial crisis.One of the main ways of trading activities of the socialist market economy is thefinancial regulators, the higher the degree of financial development, the greater is the need tostrengthen the regulation of it. To continue to strengthen the financial and legal system,strengthen the supervision of the financial industry in key areas and key links, andcontinuously improve the ability and level of financial supervision. Strengthen financialregulation in the modern economy and society can effectively guard against financial risks toensure the efficient operation of the financial system. In addition, to strengthen financialsupervision and financial markets can also maintain fair trade, protection of financial marketparticipants, especially the legitimate rights and interests of vulnerable groups. From theclassification point of view of the national financial regulation, financial regulatoryclassification following division: from the type of regulatory organization to divide thefinancial regulatory model including unified regulatory system, the separate supervisionsystem, three models of hybrid regulatory system; From the regulatory object type is dividedinto institutional type regulatory system and functional regulatory system two. Differentfinancial regulatory system by the major developed countries, according to their own factors.In this paper, sub-loan crisis in the United States for background,and a discussion of theInternational Financial Law and its related disciplines to analyze of the financial innovationsregulatory issues. Firstly, expounded the meaning of the regulation of financial innovationproducts, efficacy, means and its importance, and then introduce financial innovation in thefinancial operation of the primary, and its also plays an irreplaceable role in the developmentof modern society. Followed by the description of the advantages and disadvantages of theregulatory model for financial innovation products; then cited the United States, the UnitedKingdom,Germany, Japan and other major developed countries, financial innovationssupervision of relevant laws and regulations and its provisions, and summed up thecharacteristics of the respective regulatory and inspiration of our regulatory system. Thenfocus on the status quo of China’s financial innovation, product stewardship legal system and the presence of several defects. Finally, the following recommendations be acquired: thesound of the laws and regulations of the supervision of financial innovation and itsimplementing rules; improve the regulatory body of the financial innovations; seek China’sfinancial and economic development and financial innovative products adapted to theregulatory approach; establish and improve the regulatory mechanism; strengthen theinternational community’s standards.
Keywords/Search Tags:financial innovation, financial risk, financial crisis, regulatory principles, regulatory approach
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