Study Of Financial Derivatives, Legal And Regulatory Issues

In the 1970s, the United States and the widespread use of high inflation floating exchange rate system to avoid inflation risk, interest rate risk and currency risk as an important need of financial transactions. To avoid risks, the United States was engaged in Wall Street began the design of derivatives, distribution, arbitrage and hedging. However, the leverage of financial derivatives, virtuality and other characteristics of the existence of its own great risk, innovative financial derivatives and more complex risks to the expansion, the first outbreak of the financial crisis is a good example and initially produced contradictory. financial crisis in 2008 has made us more clear understanding that even if financial markets like the United States the most developed country, if there is no reasonable and effective legal and regulatory mechanisms, financial crisis is inevitable. In the context of global economic integration, the financial crisis has conductivity; a country's financial markets could not separate from the world market. After the financial crisis, countries have carried out major reforms in the financial regulatory system, the regulation of financial derivatives has become a hot topic, and countries are carrying out active research. China's financial markets and developed countries is not perfect, is a low-end market, in this context, how to establish effective legal and regulatory system for financial derivatives has become an urgent need to study and solve problems.In this paper, the legal regulation of financial derivatives to explore issues related to control the practice of the United States and Britain, on the legal regulation of financial derivatives to make recommendations. This can be divided into four chapters to discuss: The first chapter describes the problem.Many investors invested the products of KODA,then the dispute from investment couldn't be resolve properly. One of the reasons about dispute is lack of effective supervision of financial products.Through the concept of financial derivatives, characteristics and types of such research, explore the mode of regulation of financial derivatives.The second chapter describes the regulation of financial derivatives status. From the legislative status quo, and status of government regulation, industry self-regulatory status and the status of international cooperation, regulatory analysis, that improved regulation of financial derivatives need.The third chapter describes the laws of the U.S. and British financial derivatives regulatory system and financial derivatives between the two countries to compare regulatory system, by comparing to explore on the regulatory system of financial derivatives in China.The fourth chapter describes the legal regulation of financial derivatives, System, proposed regulation of financial derivatives models and goals, as well as government regulation, industry self-regulation, international cooperation, regulatory and legal regulations in the improvement.