Research On The Supervision Of Market Derivatives Market In China After The Second Debt Crisis

The subordinated debts are notorious. They are so called derivatives, so the derivatives are considered to be the source of all evil. Governments have begun to review the regulatory system of derivatives, regulatory measures and their implementation status worldwide. However, due to the ETD regulation is strict, transparent and market risk is measurable and controllable,ETD is constantly showing its important functions in the financial market. We should not misconstrue ETD, because it’s different from OTC in the financial crisis. The ETD market still needs to be developed.Compared with developed markets and many other emerging markets. China’s derivatives market is still immature and a growing market; China’s regulatory system is a run-in and not a sound regulatory system. Excessive financial innovation and the loss of regulations of the developed countries cause the financial crisis. Our market has a serious shortage of financial innovation and regulatory objectives are not clear but too strict. Most should continue its efforts to promote the development of derivatives markets, improve the legal environment, and improve financial ecology, a unified planning and under the supervision of, step by step, and give priority to the development of the legal conditions are ripe inside a simple financial derivatives, and the promotion of China’s financial derivatives market, and the whole development of financial markets. Ultimately, this will help to promote and safeguard the development of the real economy.In this paper, the definitions of ETD, ETD regulation and the difference between ETD and OTC reveal the confusion and misunderstanding of the OTC and ETD. After study of ETD market, regulation purpose, regulation rules and foreign regulation model, a series of problems including lack of legal system, the bias of regulatory objectives, the bottleneck of listing new contracts, the exchange’s profit and margin control system have been found. And the innovative ideas to solve these problems have been discussed.