An Analysis Of The Risk Prevention Of Interest Rate Derivatives In The Context Of Interest Rate Marketization

As the world economic integration process accelerating, dominated by financialinnovation and financial deepening of financial globalization has become a mainstream in the field of financial development. From the perspective of financial products and financial derivatives, especially interest rate derivatives have been become the forerunner of the development of the financial market, its developed degree marks the level of a country’s financial industry development. However,Interest rate derivatives, is a "double-edged sword", on the one hand provides investors with effective means of hedging, reduce the interest rate risk that investors face; But on the other hand also gives speculators speculation profit opportunities.This will create new risks. The risks of interest rate derivatives, on micro led to the bankruptcy of the enterprise, will lead to a country or a region in the macro financial turmoil, and even cause the financial crisis. Therefore, under the background of interest rate marketization in our country, the interest rate derivatives, especially the risk of interest rate derivatives, risk aversion or economic subject in our investment income is of great significance.This article first to the marketization of interest rate risk, interest rate derivatives, generalizes the existing literature, classified and reviewed in this paper, and then through using McKinnon shaw’s financial repression and financial deepening theory studied the marketization of interest rate in our country, but because of the author’s empirical lack of ability, as well as the interest rate derivatives data is not easy to get and interest rate derivatives market development in our short time lead to the data is not sufficient, this article does not according to the classic black-scholes model: an empirical study of risk of interest rate derivatives pricing. In this paper, we use the method of qualitative analysis, under the background of interest rate marketization in our country, through the formation of the risk of interest rate derivatives, including the forming cause and forming process, the present situation of the risk of interest rate derivatives, including the current market environment and the status quo of the regulation, according to the risk of interest rate derivatives formation and present situation of targeted prevention measures are put forward, for our country economic subject to preventing risks of interest rate derivatives.Conclusions of this study are as follows: Firstly, the development of interest rate derivatives must do a good job in risk preventioning and managing, liquidity risk,operational risk and the market risk for interest rate derivatives, and the credit need for effective and classification regulation.Strict implementation of regulatory policies to guard against the risk of interest rate derivativesby improving the regulatory system.Because of the current interest rate derivatives market is imperfect, and the lack of market conditions and effectiveness of the system.so we need to learn from the mature experience of foreign interest rate derivatives market, and constantly improve our interest rate derivatives of the basic system for interest rate derivatives development of the market to create a good environment. Secondly, in turn, the development of the interest rate derivatives market also needs to to promote market-oriented interest rate reform, strengthen the construction and operation mechanism of the base rate, raise interest rate derivatives pricing power, and constantly improve market structure and the term structure of interest rate of the interest rate derivatives.In order to reducing the overall risk of interest rate derivatives market,we can increase the activity of market transactions through market players diversity and pluralism of types of interest rate derivatives, Thirdly, interest rate derivatives is important for the development and improvement of China’s capital market. Interest rate derivatives have the function of interest rate risk management and price discovery, investment income and securities creation, which can improve risk management of the main market transactions, reduce risk management costs, and also provide a way to get more revenue from the main market transactions. The development of Interest rate derivatives product will greatly promote the development of China’s capital market.