Investigation On Government Regulations Of Our Financial Derivatives Products

Financial industry is under strict government regulation, for it is the most sensitive and the most complicated sector in the national economy system. With the development of innovative financial products, the advent of spin-off further promotes the innovation of financial products. For the advent of spin-off is quite late, the government now doesn't have an integral management package of restriction and supervision on this issue. It is an important duty of the supervision department of the government to regulate the spin-off sector. But for the particularity of spin-off, the government has to pay more attention to creating and optimizing comprehensive market risk management. The aim of this article is to further analyze the government regulation over the spin-off from studying its particularity, then to put forward constructive views about Chinese government regulation over spin-off.Chinese government regulation over spin-off has been developing during the process of gradual maturity of socialist market economy system, and became better with the widespread of spin-off. With the emergence of spin-off, many policies, legislations and regulations about it gradually came into existence. Immediately after, many problems about it emerged. For further study on the government regulation over spin-off, the writer tries to use every measure to come to some conclusion over this subject.The first part of this article elaborates on the background and meaning of my study. Papers from the financial derivative products, content and function, government regulation of content leads to both government regulation of financial derivatives is due to information asymmetry for three reasons, weakening risk management, the accuracy is difficult to guarantee the integrity of the price system, and hence the government the need for supervision of financial derivatives. The second part of the main analysis of the financial status of derivative products, government regulation is discussed in detail China's current situation relevant government regulatory agencies, which found that government regulation of financial derivatives in problems, and to further analyze the causes of problems.Financial derivatives can be found after thorough the third part of this article analysis, derivative products as the result of financial innovation on the financial sector plays a catalytic role, but its own risk because there is a need to use various ways to control the risk of them. China's socialist market economic system is a continuous improvement process, the risk control of financial derivatives still continue to strengthen, on financial derivatives product research and practice short, we can learn from foreign advanced experience of its supervision. Especially in the U.S. financial crisis, more stringent regulation of the product, we can refer to the United States to its regulatory experience, and strengthen government controls.The fourth part, in-depth analysis of the characteristics of financial derivatives and comparison of domestic and foreign government regulation, the financial derivative products, government regulation should proceed from the reality of our country, in adhering to the socialist market economy conditions, improve the legal and regulatory framework, from concept to correct, Therefore, the relative laws and regulations in the establishment of systems should be encouraged of development and promotion of development as the basic guiding ideology, and actively encourage and promote innovation, strengthen prevention and control the risk, The uniform laws and regulate of industry, ensure thorough implementation. At the same time strengthen the financial derivatives trading supervision, strengthen their self-regulatory functions, improve self-regulatory functions, speed up institutional innovation, and strengthen self-regulatory status. And gradually improve the trade organization's internal management system, strict and standard management to enhance their self-discipline, to reduce administrative dependent and uniform regulatory powers, while also strengthening social supervision mechanism set up to increase government control of various oversight functions. While also strengthening the unified supervision of financial derivatives models, learn from the experience of Western countries, China can step in establishing a unified regulatory system so that our financial regulatory system has certain forward-looking, changing financial markets in the characteristics of better respond, use the current regulatory agencies to save administrative resources to ensure the effective function of government regulation, the financial industry and the rapid development of socialist market economy to provide regulatory protection.After in-depth analysis and investigation of financial derivative products, we find that the financial derivatives can stimulate economic development and promote progress of sustained social economy under the socialist market economic system, because of its own risk of this products, it must be controlled by the government. After research on the characteristics of our government control and government regulation of financial derivatives, we find that we must strengthen supervision of financial derivatives. Analysis of the status of U.S. government controls on financial products and features of U.S government control after sub-prime crisis, it is required that we must supervise on financial derivatives products by laws and regulations combined with our current status, to establish supervise structure under saved administrative resources, to ensure the functions of government supervision, and strengthen supervision of financial management administration to ensure the development of financial derivatives products supervised by the government.Financial derivatives products promote the economic development as an innovative financial tools, as the existence of its own risk, it is required to strengthen supervision functions and establish supervise structure under saved administrative resources, to promote the development and building of the socialist market economy positively.