A Comparative Study of International Regulatory Frameworks for Financial Derivatives Markets (USA vs. China vs. Europe)

This paper critically analyzes the ways in which the regulatory framework for the financial derivatives markets in three major jurisdictions, the United States, China- and Europe are defined, focusing on Accounting, default mitigations, and ultimate parent and affiliate exposures (Accounting Financi...

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Bibliographic Details
Main Author: Chi Zheli
Format: Article
Language:English
Published: EDP Sciences 2025-01-01
Series:SHS Web of Conferences
Online Access:https://www.shs-conferences.org/articles/shsconf/pdf/2025/09/shsconf_icdde2025_04013.pdf
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Summary:This paper critically analyzes the ways in which the regulatory framework for the financial derivatives markets in three major jurisdictions, the United States, China- and Europe are defined, focusing on Accounting, default mitigations, and ultimate parent and affiliate exposures (Accounting Financial Institutions) in particular. Its overall qualitative analysis is through a mix of case studies, comparative analysis and a literature review methodology. Financial derivatives such as futures, options, swaps, and other derivatives are the soil in which modern financial systems are founded upon. Also, the recent global financial crisis in 2008 revealed shortcoming in derivatives oversight and triggered a regulatory response which is still in the making. The historical development of derivatives regulation is reviewed in this paper, the theories of regulation in existence today are considered, and efforts made to reform derivatives regulation in recent times are scrutinized, with both strengths and weaknesses in each jurisdiction drawn out. In addition, the paper examines regulatory issues across borders and provides policy suggestions to address them in order to minimize systemic risk and improve international coordination. It, therefore, hopes to add to the discussions currently ongoing in academia and to other regulatory initiatives which want to improve market transparency and stability.
ISSN:2261-2424