The Legal Regulation Of Securities And Securities Derivatives A Comparative Study

One of the strategic measures of China's Capital Market from 2008 to 2020 is that "to positively and safely develop the futures and derivatives market. It is required to complete the futures variety system, safely develop the financial derivatives, and perfect the exchange mechanism of derivatives". As the CSI 300 Index Futures has been gradually introduced into the market agenda, the securities derivatives will come to China soon. Encountered with the new securities derivatives, either the practices fields of finance, the jurisprudential circle and even the Capital Market Supervision institutions, all pay much attention to its development. Because of its sophistication and the attributes of leveraged trades, both the profit and risk may be far above that of the traditional financial instruments. Therefore, it is urgent and practical to learn the securities derivatives legal regulations.Securities and Securities Derivatives are the two typical forms of the Fictitious Economy. They perform in the different logic away from the realistic properties. Meanwhile, securities derivatives derivate from securities, but derivatives have their own value. When designing the securities derivatives legal regulation system in theory, we can find some shared contents in their exchange regulation and risk management. However, analysis of the details of regulations of both securities and derivatives put the way to its further research. The consideration of the basic differences of the securities and securities derivatives, combined with the development history of both the Financial instruments themselves and their regulations, maybe play a positive role in seeking a legal regulation system fit for China's Securities and Securities Derivatives current situations.Besides the Introduction, this assay is divided into four parts. It is started form the basic theory, then the comparison of the specific Regulations of both the Securities and Securities Derivatives. Its conclusion, combined with the current situations of China's Securities and Securities Derivative Regulations, is used for reference for that of China's Capital Market. The first part mainly analyzes the basic theory of the regulations over both Securities and Securities Derivatives. It begins with the definition and typical types of the Securities and Securities Derivatives, and points out their essential properties of Fictitious Economy. In this sense, the essential associations and divergences of Securities and Securities Derivatives could be reviewed in three aspects such as their relationship with the Substantive Economy, rules of pricing, and the investment and profit purposes. Then particularly, the historic methods of study have been used to compare the development of the two financial instruments, with the conclusion that Securities Derivatives are functioned as Risk Management measure. Furthermore, this part studies deliberately the fundamental reasons of the legal regulations of Securities and Securities Derivatives by means of analysis of the Market Risk, Credit Risk, Liquidity Risk, Operation Risk and Legal Risk, which in some sense determines the different part of both the Securities and Securities Derivatives Regulation.The second party mainly aims to compare some aspects of the Legal Regulation of both the Securities and Securities Derivatives. It focuses on six aspects like the reasons for regulation, OTC regulation, the operating institutions regulation, Market Access regulation, information disclosure and settlement regulation. Firstly, the reasons of Securities and Securities Derivatives Regulation contain the basic targets of protecting the investors to secure the market equity, ensuring the market justice efficiency and transparency, and reducing the Systematic Risk to secure the market safety. The Securities regulation more concerns the investor protection, while the Securities Derivatives are eager to reducing the Systematic Risk. Secondly, the OTC regulation comparison involves the trading rules and credit risk management, and the Securities Derivatives regulation emphasis the operating institution. Thirdly, the operating institution regulation compares the two in its establishment, its business and risk management measures. Fourthly, the Market Access regulation analyzes the Securities enlisting rules and Securities Derivatives designing rules, with the latter requiring its economic benefits and non-gambling attribute. Fifthly, information disclosure regulation involves the entities who bear the duty and the information that should be disclosed. The Securities Derivatives Disclosure emphasizes risk exposure much. Lastly, the settlement regulation summarizes the Securities Settlement Rules, and explains the Securities Derivatives settlement mechanism, with its Margin management as its lasting risk-control measures.The third party is about the reflection and expectation of China's Securities' and Securities Derivatives' Regulation. In the reflection, this assay arranges China's Securities Regulation history, and analyzes that of the Securities Derivatives. Based on the reflection, the integrity of safety and efficiency and the further reform of the enlisting rules of the Securities are necessary. With regards to the expectation, the new financial instruments Securities Derivatives regulation involves the legislation, market foundation, and market access, the exchange rules and supervision of Securities Derivatives.The fourth party is the summary of the whole assay, and concludes from all the above three parts. It reemphasizes the divergences of the Securities and Securities Derivatives Legal Regulation. In the sense of research method, the comparison of the two is of its independent values and significance.The main characteristic and value of this assay in research is to avoid the common study just for the Securities Derivatives itself, but in a comparative aspect, to find out the connotation of the Legal Regulation. The whole essay is developed in a comparative way, from the concepts and types, to the essential properties of Fictitious Economy, and from the deep reasons and objectives, to the specific regulations of the Securities and Securities Derivatives, so as to definitely point out the critical difference and relation of the two. In the other side, it uses the historic analysis, and starts from their development, so as to find out the fitness between the reality and history.