Legal Research On Financial Consumer Protection Of Derivatives Trading

Derivatives instrument is a highly professional and risking new financial product alongwith the financial innovations. Derivatives instrument have played an extremely importantrole in the global financial markets. It has the special factions, such as hedging, to avoid risksand price discovery. But on the other hand, because of the leverage and specialty, it maycause huge financial risk that also makes people fear about this kind of products. After thefinancial crisis in the USA, all countries have launched a new round of the wave of financialreforms. One of the most concerns is to protect the financial interests of consumers. Chinesederivatives market is not fully mature and open, the phenomenon that financial consumersaffected by the infringement of the rights and interests is more prominent. In suchcircumstances, to strengthen the study of the protection of the financial interests ofconsumers’ derivatives transaction process is the most important.This paper is divided into five parts: the first part, theoretical basis of protection of thefinancial interests of consumers of the derivatives transaction process. This part introduces theconcepts related to the definition of financial derivatives, financial consumer financialconsumer definition and derivatives trading process. The second part, the special protection offinancial consumers’ rights and interests in the process of financial derivatives transactions.This part analysis derivatives trading in the serious information asymmetry and highlyprofessional and leverage, proves security financial consumer rights and interests in theprocess of trade has the different characteristic and general consumers. The third part, the lackof financial consumer protection of the rights and interests of derivatives trading in ourcountry. This part start from the aspects of financial consumer protection legislation andderivatives trading, financial supervision, discusses the security of the financial interests ofconsumer’s lack. The fourth part, from the analysis of financial consumer protection of therights and interests of foreign experience in derivatives trading. The part begins with theUnited States, Britain, Japan and the European Union beneficial exploration in ensuring thefinancial rights and interests of consumers, provides valuable reference for our country’sprotection of financial consumers. The fifth part, on the financial consumer protection systemproposed consummates our country derivatives transactions. The part starts from thelegislation, supervision, perfect sales agency improper sales practices and the regulation of financial consumer financial education, put forward the thinking of perfecting the financialconsumer rights and interests protection path in china.The general idea of this article follows the first argument is that:introducing the basictheory of financial consumers, combined with the particularity of the financial derivativestransaction process on the defects in our country’s relevant system, then present the successfulexperience of foreign financial consumer protection of financial consumers in China,lastly,put forward the ideas of improvements on the protection system.