On The Legal Supervision Of OTC Financial Derivatives Of Commercial Banks

In April 2020,the Bank of China’s "crude oil treasure" business experienced a historic "negative price" due to the settlement price of international crude oil futures,resulting in huge losses to the Bank of China and domestic investors of "crude oil treasure" products who hedge risks abroad.The "crude oil treasure" incident has aroused the great attention of the regulatory authorities and judicial organs.Through the administrative punishment decision of the regulatory authorities and the judicial judgment of the judicial organs,we can find that the "crude oil treasure" products belong to the varieties that have not been prohibited,but the state organs have not clearly defined the nature of the products.Therefore,this paper focuses on the meaning and characteristics of OTC financial derivatives of commercial banks,discusses the nature of "crude oil treasure" products and the legal relationship of commercial banks in the operation of OTC financial derivatives,and clarifies the basic theory of the supervision of OTC financial derivatives,So as to pave the way for the analysis of the legal supervision problems reflected in the event from the perspective of prudential supervision and behavior supervision.Through case study,comparative study and interdisciplinary research,this paper studies the legal supervision of OTC financial derivatives of commercial banks in China,and finds that there are the following problems in China’s relevant regulatory system: in the stage of product design and market entry,China lacks effective supervision on the market access of OTC financial derivatives of commercial banks;In the stage of product sales,the main problems of supervision lie in the lack of supervision on the improper inducement of commercial banks and the imperfection of the regulations on the appropriateness of investors;In the continuous operation stage,commercial banks lack of perfect OTC financial derivatives information reporting system.Based on the above problems,from the perspective of regulatory classification,this paper puts forward some suggestions on the improvement of the legal supervision of OTC financial derivatives of commercial banks in China.