Financial Innovation and Legal Regulatoion——Review and Reflection on the Evolution of US Securities Legislation
Financial innovation and supervision regulation system is a difficult problem to be researched.100 years history of US securities legislation shows that early state legislation was a legal regulation to financial product innovation which was full of fraud in the completely free market economy,and it mainly protected the basic interests of the investors.Later,the federal securities legislation was a result of reflecting the US economic crisis,and it was also a limitation to a securities business and its innovation,so the federal securities legislation mainly safeguard financial security and economic order.The transition of federal legislation is a syste change to deal with the economic development,it can promote financial innovation,enhance the competitiveness and improve the efficiency of economy.On the basis,it reveals a kind of notion that US balances financial innovation and legal regulation by legislation to safeguard financial security and economic efficiency.From it we can understand financial innovation is an important factor for the US economic development and stability.Controlling and relaxing finance is a long and repeated process of system change.So people should proceed from reality,respect the market mechanism and respect the inherent law of financial markets.