Research On Contract System Of OTC Financial Derivatives

Abstract:Since the1980s, financial derivatives transactions scale presents a range of explosive growth within the scope of the world. And this one, the OTC financial derivatives is the most prominent one. Base on the complex mathematical models, computer technology and highly developed a wide variety of transactions, the OTC financial derivatives gradually developed into the current market, which is the most important for market players tailored to the specific needs of risk management tools. We can say that OTC financial derivatives has become the tool that it can influence lifeblood of the global economy. OTC financial derivatives transactions subject to bring high returns, but also brings its high-risk, so the main of the market transactions build the love-hate relationship. It can be said that the current major financial catastrophe, all OTC financial derivatives and the characteristics are closely related. So,the international community began a thorough study of OTC financial derivatives legal system.In this paper, basing on a series fundamental questions transaction of the OTC financial derivatives, gradually learned from the financial and legal point of view, analysis of OTC financial derivatives attributes, characteristics and rules, researching the ISDA Master Agreement as a model, by comparing the situation of domestic legislation and legislative situation of China, made of OTC financial derivatives legislation values and rules.