Research on the Legal Mechanisms of Risk Management in the Futures Market

Author: Li Mingliang
Publisher:
Publish Date: 2005-04-01
Features: This book starts with the legal characteristics of the futures market and the futures trading process, comprehensively studies the types and features of risks in the futures market, systematically analyzes the factors inducing risks in the futures market, and argues, through comparative research, the risk management and prevention mechanisms of China's futures market compared to other countries. It also summarizes China's experience and lessons in risk control in the futures market over the years through case studies. Additionally, it proposes views on improving and refining risk control in futures trading and futures settlement, and conducts research on the legal liabilities of futures trading. It can be said that this book is an outstanding work in the study of the futures market in recent years, both in theory and practice.
The function of law primarily lies in "settling disputes and defining rights," where Deng allocates rights and obligations among legal subjects. Therefore, fairness and justice should be the foremost values in futures legislation. When designing the legal mechanisms for risk control in the futures market, we should not only consider the completeness of the law but also the efficiency of the futures market. The legal mechanisms we design for risk control in the futures market are not intended to establish an impeccable legal system to eliminate market risks, but rather to establish a system that reduces risks to a minimum and prevents them from affecting other areas of the financial market. Therefore, the establishment of legal mechanisms should balance the effectiveness of the system and the efficiency of its implementation.