Research On The Legal Issues Of China's Foreign Exchange Margin Trading Supervision

As a financial risk management mechanism of foreign exchange market,foreign exchange margin trading market has the price discovery and hedging,investment earnings,and other functions,it play an irreplaceable positive role in maintaining financial stability and promoting economic prosperity.China had opened the foreign exchange margin market for two times,due to the investos was not mature,lacked of technical level,the regulatory system was not perfect and so on issues leaded to China's foreign exchange margin market has not been legalized.In this paper,the characteristics of foreign exchange margin trading as the starting point for foreign exchange margin transactions in the process of regulatory legal issues to study,putting forward relevant recommendations.Specifically,this article has four parts,respectively:The first part is mainly about the overview of characteristics.It is divided into three aspects: Firstly,from the operational mechanism and the comparison of foreign exchange contracts and other financial derivatives,it is summarized that it has more fictional characteristics.Secondly,through the non-standardized form of its contract and the rights and obligations of both parties,the relationship between the credit risk and the legal risk is revealed.Finally,through the analysis of the characteristics of the derivative products such as futures and options and the analysis of the unique market maker model of foreign exchange margin trading,it can be seen that the margin ratio Aspects and transparency have significant characteristics.The second part is mainly the analysis of the problem.From the development of foreign exchange margin trading as the starting point,summed up the foreign exchange margin transactions in the regulatory level there are shortcomings.Which is divided into three aspects: Firstly,as the normative legal system of the transaction in the value orientation is not conducive to the transaction,the legislative level is low,regulatory power overlap and other issues;Secondly,is in the specific legal system level and the existing sector There is a conflict between the law;third is the commercial banks in the transaction of the holdings of measures there are deficiencies.The third part is mainly the introduction of international experience.This paper mainly introduces the legislative and practical experience of the legal system of foreign exchange margin trading in the United States,Britain,Europe and Japan.The content of the discussion is based on the second part of the problemThe fourth part mainly focuses on the third part of the issue to make recommendations to regulate the foreign exchange margin trading market,the specific contents include: First,at the macro level to identify systemic risk and the proposed crisis management mechanism;the second is in the access system and investors The protection level is clearly defined;the third is through the legal level with foreign advanced experience and ISDA main agreement related content to resolve with the existing law contrary to the content.