Experts and scholars hotly discuss the draft of the futures law
The draft of the futures law, which is being sought for comments, has attracted a lot of attention from academic circles. Recently, a number of experts and scholars expressed in an interview with a reporter from the Futures Daily that the gradual regulation and rapid development of the futures market requires a law that can deeply promote market innovation, effectively regulate the relationship between market entities, and fully promote market functions. I believe that in the follow-up legislative process, the draft of the Futures Law will be continuously improved on the basis of sufficient and extensive solicitation of opinions.
Talking about the draft of the futures law announced this time, Professor An Yi of the Department of Finance of the School of Economics and Management of China Agricultural University told reporters that the futures legislation is of epoch-making significance. The draft has distinctive characteristics of the times and Chinese characteristics, and it is the systematic law that comprehensively summarizes 30 years of development experience, lessons and practical innovations，not only has the characteristics of comprehensive content and balanced relationship, but also has the flexibility of market development and the forward-looking nature of guiding innovation. It is the universality of the international futures market. A law that has a good combination of legal regulations and a regulatory system with Chinese characteristics.
"The overall keynote of China's futures legislation and supervision is to strengthen supervision and prevent risks." He Shaoqi, a professor at the School of Civil and Commercial Economics of China University of Political Science and Law, said when interpreting the specific clauses of the futures law draft, in the draft, the new product listing system is encouraged to use the futures market. And other derivatives markets engaged in risk management policy announcements and other development-promoting mechanisms to achieve the correction of excessive regulation and the balance of strong supervision and risk prevention. This will help the financial innovation of the futures and derivatives industry, promote the opening and competition of the market and the industry, it is a major benefit to the sustainable and healthy development of the futures and derivatives industry.
"The draft mentions that the state supports and encourages the development of the futures market, and confirms the three functions of the futures market from the national legislative level: price discovery, risk management, and resource allocation. This means that the futures law is not only a regulatory law, but also a promotion law. " Said Liu Chunyan, an associate professor at the School of Law of Tongji University.
The extraterritorial jurisdiction mentioned in the draft of the futures law has also been praised by scholars. Liu Chunyan told reporters that this is the second law in China's financial legislation that has established the extraterritorial jurisdiction of China's law after the Securities Law. This is an inevitable requirement to maintain the domestic market order including the futures market, to protect the legitimate rights and interests of domestic traders, to adapt to the rule of law and internationalization of China’s futures market, and to protect the meets of internationalization of China’s futures market and other commodity markets.
"While promoting the opening and internationalization of the domestic futures and derivative markets, cooperation and coordination of extraterritorial jurisdiction and cross-border supervision are also conducive to achieving full coverage and accuracy of market supervision, effectively cracking down on various illegal transactions or activities, and promoting healthy development of market and industry, and holds the bottom line that no systemic risks occur." He Shaoqi said.
In addition, He Shaoqi also said that the draft mentions classification protection of investors in the futures market and separates investor protection into a chapter, which is also conducive to enhancing investors' confidence as well as trust in the futures market and the industry.
An Yi believes that the draft of the futures law announced this time is the result of long-term practice and legislative discussions in China's futures market, and has a certain historical maturity. Therefore, it will surely promote the realization of a qualitative leap in China's futures market.
"On the one hand, the futures law will speed up the promotion of China’s futures market from partially closed to international open, from the 'emerging + transition' stage to the 'innovation + upgrading' stage, from quantity to quality, and from administrative intervention to the all-round transformation of supervision of rule of law. On the other hand, the futures law will also promote the development of China's futures market in a healthier and more mature direction, so that China has a good competitiveness in the international commodity, financial pricing system and risk management system." Yi said.