Research On The Mandatory Liquidation Of Futures Trading

In futures trading,the System of Mandatory Liquidation is one of the important measures to control risk, and it’s also an important guarantee for the orderly futures trading.But in the futures trading activities, the mandatory liquidation may not only failed to control the risk, reduce the loss of position, but also may be the main cause of disputes and the arch-criminal infringing the rights of ownership.So,the detailed provisions should be made clearly to conduct the mandatory liquidation, so that the futures exchanges and futures companies will be forced to unwind behavior constrainted in the range of legal and justice.However,at present, our country haven’t had the special law to make a unified regulation on related matters.In addition, other laws, regulations, rules of many issues are not detail, what’s worse,some of them are even in contradiction to each other, which makes that impossible to be used as a reliable basis for the implementation of the mandatory liquidation, and it is easy to cause dispute.The legal nature of mandatory liquidation has an great effect on many aspects,such as the execution of the program and the responsibility distribution.But up to now, the existing legal documents have not made a clear and unified rule on this question.There are four main ideas in the academic circles,which defined the legal nature of the mandatory liquidation as rights, obligations, rights and obligations,rights into obligations.This kind of situation may lead a consequence that disputes happened between subjects who hold different points of view,and the courts may also make different judgments if they hold different points of view.As a result,although the System of Mandatory Liquidation is an important measure to control the risk, it instead cause more risk.This paper will analyze the nature of the mandatory liquidation on the basis of the existing regulations and theories, and then make a brief analysis of the disputes occurred frequently in practice through specific cases,eventually seek out the best way to resolve the disputes.