Of derivative financial market supervision
|School||Capital University of Economics|
|Keywords||Financial derivative products Financial derivatives market Regulatory system financial behavioral theory|
Financial derivatives is the product of financial liberalization. The prominent characteristic of global financial market is that financial derivatives have got explosive growth in the recently 30 years, as a result of its importance and influence for global financial market rising constantly. On the other hand, Chinese economic integrates gradually with world’s at times of economic globalization trend being come. For a great nation of active establishing market economic system, it is every reason to develop financial derivatives in China not only to perfect marketing system and transfer financial risks, but also to perfect resources of allocation and provide readjustment means for government. But the potential threat to the security of financial institutions have been caused by its by-effect while the financial derivatives develop vigorous.The potential threat mean that financial derivatives are created increasingly,as a result of indistinct limits among the financial institutions and adding to the difficulties of financial controlled. Otherwise, there are the innate complexity and hign risks of financial derivatives transactions as well as its development go beyond either the national boundaries or the government, with the result that a single country or region can not control the risks overall by himself. Iternational financial circle and every country’s authority have been agreement to strengthen international supervision and international cooperation. The native financial derivatives trade have developed in the case of the laggard basic mart, inexperienced investors and sluggish supervision. Along with the all-around opening of our finance business to foreign capital, it must lead a rapid development of the financial derivatives mart which brings more risks to the whole market as well. The reasonless investings of domestic investors and the impact of foreign speculators could bring unpredictable harm to our native financial derivatives mart. Therefore, use properly the international experience of financial derivatives mart supervision for reference; reinforce the international supervision cooperation and duly design a Chinese supervision system of financial derivatives mart are very exigent.The paper are based on our financial derivatives transactions in history, present situation and problems, which draws on the international regulatory trends in the development of new ideas, based on Chinese current economic development situation and the level of the market to make a beneficial exploration for Chinese reasonable construction of financial derivatives market supervision system. This paper tightly around our financial derivatives market supervision that the main thread, layers of depth, and with our financial derivatives transactions for the development of entry points, from the perspective of behavioral finance theories, expounded the derivatives market risk formation of a special mechanism, through classic cases that the theoretical analysis of Chinese financial derivatives market supervision and enlightenment, and further demonstrated the need for strengthening financial supervision. Proceeded to a more focused on the theoretical foundation of the financial market regulators, particularly in the view of the dynamic game to analyze the dynamic relations between financial derivative and financial controls. Finally, on the base of learning from international experience with Chinese actual conditions the paper completes our unearthly financial derivatives market supervision system structure.