Legal Research Of Supervision On International Financial Derivative

Financial derivatives, the product of financial market which is developing to an advanced stage, formed in the development of traditional financial products, are emerging financial instruments which are leveraged, predictive and virtual. The financial crisis triggered by American subprime mortgage crisis, due to the lack of regulation, has swept across all over the world. The turbulence of financial markets increased seriously and the global economy is full of uncertainty. Moreover, the financial derivative is accompanied by the development of the banking innovation. Therefore, for maintaining the balance development of a small range of financial risk due to the lack of regulation quickly swept through the financial markets. Because of financial derivatives is accompanied by the development of the banking industry. This limitation makes itself lag behind the financial market innovation. Therefore, for maintaining the development of financial derivatives and the financial market, how to improve the relevant legal regulatory framework which exists now constantly has become a problem of the world which needs to be solved urgently.However, before improving the relevant legal supervision framework, there are still some defects for international financial derivatives in the practice field. On the one hand, due to the asymmetry and non-transparent information, the users of financial derivatives cannot obtain much available information, which affecting them for making investment decisions. On the other hand, the rating agencies are autonomy and spontaneous, which limits the reach range when the government exercises its regulatory powers. Under such a prerequisite, agencies, driven by their own interest, may give unreasonable identifications. All of the above may bring potential crisis to the regulation of financial derivatives. To this end, by treating the bankruptcy of Bahrain International Bank(BIB), the American sub-prime mortgage crisis and the European sovereign dept crisis as an opportunity, this thesis attempts to do some useful discussion for the supervision and legal issue of international financial derivatives. This thesis based on taking the necessity of the supervision of international financial derivatives, referring to the developed regulation experience of the western and making multi-dimensional comparison for the regulation of financial derivatives from the aspect of dual-angle, analyzes and summarizes the typical characteristics of each supervision system, thus putting forward some views and opinions to the specific problems in the practice of the present laws of the country.