Legal Issues On The Reasonable Border Between Government Regulation And Self-regulation

After long-term investigation and preparation, the stock index futures finally reached the market in April16,2010, which was a historical event for the development of China’s financial market. As a financial derivative, stock index futures set the price index of a certain stock as subject matter. The buyers and the sellers in the stock exchange agreed to engage in the clearing and settlement of stock index trading based on standardized contracts with a certain price at a specific time in the future. Stock index futures have the functions of price discovery, hedging, optimizing asset allocation and so on. However, it is easy to lead to operating risk, market risk, legal risk and credit risk, therefore, a more scientific and effective legal system for stock index futures regulation should be established to help all parties to circumvent the risk,keep the financial markets stable and efficient and protect the interests of investors.The boundaries between powers of the government and the self-regulatory organization for China’s stock index futures regulatory were selected in this paper as study object and based on the theoretical analysis of the exercise of the regulatory of both the government and the self-regulatory organizations, the history, current situation of the custody of China’s stock index futures and the power configuration with different regulatory approaches in other countries were analyzed and discussed, which provided ideas and suggestions for the rational division of permissions between government regulation and self-regulatory of China’s stock index futures market.