On Legal System Of Warrants

Warrants is the negotiable security that proves the holder has right to buy or sale appointed quantity security at appointed price within its validity period. From legal aspect, warrants is a selective legal contract in essence. Option is the basic property of warrants. Making sure warrants has the legal position as the negotiable security is advantageous to judging which law warrants legal relation is subjected to. The operation and legal supervision of warrants in foreign markets is very mature, China need use the advanced experience of foreign markets to enforce warrants.The innovation process of warrants products is also the process of legal innovation and rule construction. The control of trade risk is one of the most important link, its core is the whole set of valid risk guard against a mechanism. The perfect and development of the whole stock market is a systemic engineering. It is wrong to hope that drawing up the issue rule of warrants can solve originally confirmed problem in the stock market. It is necessary to redefine the point and the trendy of legal supervision. Currently warrants relative rules made by supervisor in China provide a common structure of rules for warrants. But there are still many legal problems to be solved.In order to resolve how to divide the work, moderate and link up in the legal system of warrants, we need construct the legal structure of warrants from different grades of laws. A perfect warrants rule is the premise of warrants market development. To perfect the rule, we should keep it prospective and total, not only making sure it operability, but also reserving space for leading market-making into the warrants market in the future. Currently warrants relative rules still should be further perfected from the qualification of issuing subject, the issuing conditions, trading rules, revealing of information, controlling of risk and so on. At the same time, we should strengthen the education of risk consciousness, lead reasonable investment, and achieve participants'self-control.