The Research On Regulation Of Financial Derivatives Market

Financial derivatives are the shortest in history,but the fastest developing financial instruments.According to the reports from Bank for International Settlements,total value of global financial derivatives deals reached 692 trillion U.S. dollars in the first quarter of 2008,making the highest record in financial history.The developing of financial derivatives market,especially OTC market,makes the potential risk of the financial system rise dramatically.The financial derivatives market has greater influence on the international financial system with banks get involved in more and more financial derivatives deals.After the subprime crisis in the U.S and a series of derivatives accidents all around the world,governments realize the necessity of strict regulation of financial derivatives.And the complexity of financial derivatives makes a big challenge to the financial regulation institutions.It becomes one of the urgent tasks how to regulate financial derivatives to governments all around the world.So it's necessary to prompt the research on the regulation of China's financial derivatives market by using the international experiences for reference.This article analyzes the regulation of financial derivatives market.First it introduces financial derivatives and the general principles of regulation of derivatives market.Then it compares the regulatory systems of financial derivatives market of the main countries in the world.After that,the article goes on to analyze the regulatory problem existing in the subprime crisis and other derivatives incidents.Finally,it introduces the current regulatory system of financial market in China,the problems exist and the countermeasures to improve.Based on the analysis of the subprime crisis and other derivatives incidents,the article gives out not only suggestions to the regulation of financial derivatives market in China,but also policy advice to improve it.