Abstract: The accelerating of marketing process for interest rate,the perfection of RMB interest rate formation mechanism and the expansion of basic financial market scale have provided conditions for the development of financial derivatives in China.Financial derivatives are helpful for investors to avoid risks,lower cost for raising funds and enlarge business scope of financial institutions.Our means to develop financial derivatives is to set up an orderly market mechanism,perfect supervision system,strengthen international cooperation,improve risk management system and formulate relevant laws and regulations.

Key words: financial derivatives, risk, supervision