Legal Supervision Of Financial Derivatives

Financial derivatives which also called derivative securities, financial derivatives, is akind of basic types include futures, options, forwards and swaps financial agreement, itsvalue is determined by the underlying assets or index. Derivatives can be a kind of thecontract, or the combination of the above contract. Financial derivatives with high risk, ismore complicated than the basic financial tools, very few people can really understand therisk of financial derivatives and how it is transformed, characteristics of leverage financialderivatives magnify financial derivatives trading losses and gains, financial derivativestransactions are faced with high risk.In the development and prosperity of financial derivatives, the supervision offinancial derivatives is often behind the development of financial derivatives. With thecomplexity, high risk and leverage of the characteristics of the financial derivatives marketis based on the great benefits temptation, not rush into danger, adopt various means tocircumvent existing financial supervision system. From the Bank of Bahrain, the UnitedStates sub-loan crisis, the collapse of the European sovereign debt crisis events can beseen, the financial derivatives crisis to a country and even the global economy have asignificant negative impact. Therefore, it is the choice for each country to strengthen thefinancial derivatives legal supervision and to prevent the crisis.Firstly the definition and clear outline of financial derivatives, the case to show thelegal regulation of financial derivatives is out of control which causes a great damage tothe national economy and the global economy, expounds the necessity of strengthening thelegal supervision of financial derivatives. The second part analyses systematically thestatus of legislation related system of China’s financial derivatives supervision, mode ofsupervision, information disclosure, market access, exit, trading, financial consumerprotection, credit rating agencies, regulatory system, detailed analysis of the problems.The third part is the international comparison, weigh the advantages and disadvantages ofgains and losses, to foster strengths and circumvent weaknesses of financial derivativessupervision legal system, make foreign things serve china. The fourth part of the thesis on the basis of the above research, we put forward proposals to establish and improve thesupervision of financial derivatives legal supervision system from the mode of supervision,financial derivatives, financial derivatives information disclosure system of consumerprotection, credit rating agencies.