The Research On Legal Isuues Of Our Country’s OTC Financial Drivatives Transactions

Since the last century in the late, the financial derivatives has been in the state of the rapid development and quick updating in the international financial market.This state can last so long for the reason that its constant innovation and derivative could be a great adaptation of the financial derivatives market’s demand of transferring risk. In accordance with their different trading venues, financial derivatives can be divided into OTC derivatives and the financial derivatives in the exchange venue. As the products of the financial derivatives in the exchange venue are limited in the fixed system, its speed of development and innovation is far less than the products of OTC derivatives. But at the same time precisely because the development of OTC derivatives largely lack of the specification, so it lead to the trading liquidity of its products lacking of transparency and tend to be high trading risk. These unsafe characteristics of the products finally cause the accident of high loss in the financial markets, and even bring in financial crisis caused by the chain reaction in the end.The OTC derivatives market of our country has grown rapidly in recent years, but at the same time there is not a complete legal system to regulate it. There are many issues to be solved, such as the conflicting between the trading system and relevant areas, the related legal legislative level being too low, specific legislation on technology integration being not compatible with the market, the statutory disciplinary mechanisms of the market being basically lacking. Therefore, we must solve legal issues of our country’s OTC derivative transactions, establish and improve the legal system for following the market development, so be able to guarantee the development of our domestic financial market.In this paper, the core of the study on OTC derivatives is the legal system of OTC derivatives transactions.And then according to the theory of knowledge related disciplines and general principles of law, give research and analysis on the legal system of OTC financial in methods of the economic analysis, comparative study and empirical research and other scientific. This paper is divided into five parts. The first part is the introduction that it mainly discuss the topic background of this paper, and research value, and clarify the article research ideas and structural arrangements. The second part basing on the OTC derivatives market trading system and product content description, mainly analysis the legal form of the transaction and the risk related to it. The third part mainly expounded China’s OTC financial derivatives transactions on the legislative situation and specific legal issues and carry out a detailed analysis of the conflict. The fourth part firstly quoted the extraterritorial legal system of OTC financial derivative transactions and the experience to deal with specific issues related to the OTC derivatives market, then we can learn from it. The fifth part mainly attempt to build and improve our OTC financial derivative transactions legal regime of specific initiatives. Finally, on the basis of the above sections, it integrate the legal system construction constructed from a macro perspective on China’s OTC derivatives markets. That is, to learn from foreign experience in handling similar problems and on the basis of the development situation of derivatives markets in our country, it then gradually propose the introduction of standardized trading initiatives and fundamental solutions, appropriately draw up the "Financial Derivative Transactions Act" which is a norm of legal hierarchy at the last.