The Research Of China's Financial Derivatives Market Development

Since the 1970s, as the global collapse of the fixed exchange rate system and the continuous development of financial innovation, particularly in scientific and technological progress and communications technology ,also under the influence of relaxation in the financial market supervision, the financial sector has undergone earthshaking change. Options, futures, swaps and other financial derivative products developed rapidly. International financial derivative market is undergoing a rapid expansion and development.As to the positive role of financial derivatives, the international community has reached a basic consensus: financial derivatives generally improve the efficiency of the allocation of financial markets, through risk classification and transfer the risk to those market participants who willing to commitment, and fundamentally promote the effectiveness of the financial system. This transfer of risk is not a zero sum game, but can significantly enhance benefits.Enlargement of the scale of the financial derivatives markets are more reflection of asset prices, rather than the causes of asset price instability. Development of financial derivatives can enhance the mobility of the financial markets, reduce financial market transaction costs, and greatly enhance the risk management capabilities of enterprises and financial institutions.This paper focused on the development of China's financial derivatives markets issues. The first is about the meaning of the financial derivatives markets, the role in the development and the status quo, and other aspects of the overall narrative, in order to clearly define the concept of object and facilitate further detailed explored below.Second is about the development of the financial derivatives market. Recalling the origin of the international financial derivatives markets, the development context, as well as analysis of its causes and development of the status quo, and predict the development trends of the international financial derivative market.Then to the specific situation of China, on the basis of analysis about the development process of China's financial derivatives markets, and review the past experience in this regard, so as to point out the necessaries of developing the financial derivatives markets ,and also for the below to suggest the better promotion of China's financial derivative markets.This article holds that China's financial derivatives markets, despite 20 years of practice and development, are still inadequate, the crux of the problem lies not in line with the level of economic development at that time, adverse market regulation and excessive speculation in the market.Finally, in light of China's current economic and financial realities, the paper focus on China's financial derivatives markets further development of a number of targeted and feasible countermeasures. And point out that China's current development of the financial derivatives markets, and its corresponding policies and measures should include ancillary financial products, supporting financial environment, stringent regulatory system. At the same time this paper on the risks of financial derivatives markets also gives the corresponding risk control measures.