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mation dissemination and reception both need to take many costs. The consequences of behavior is full of uncertainty and technological conditions are full of limitations and organizational structure has the imperfect nature, for any decision makers, these implies a very high cost, and often the information is not only a cost, but shows increasing returns, people often have to pay substantial amount for information, whether this information is used to affect one or thousands of transactions. Therefore, a way to reduce information costs is very important to institutional arrangements.

2.3.3 Special origin of regulation on financial derivatives market
The regulation of financial derivatives changed generally from the first internal regulation into the exchange self-regulation, and finally developed into the government’s administrative regulation with state intervention and a wide range of international cooperation (Meyer, Jack, 1997(77)).
Derivatives result from the market needs. When the derivatives turned up at the first time, the majority of transactions were in accordance with market self-organizational model (Meyer, Jack, 1997(77)). The deal size was very small, and trading partners were very fragmented. The initial derivative transactions were based on agricultural products or precious metals. And for particular traders, their trading partners were usually changeless. It requires that parties to that transaction maintain a high degree of business reputation and avoid the events of default. In this way, there is an incentive to mutual check and maintain their own credit. With the economic and social development, trade market needs and changes in the organizational system, the civil derivative trade associations came out in certain sectors of the derivatives commodities trades. These organizations had constraint to the members or investors and made industry’s code for transactions.
With the continuous development of basic products and financial products, the derivatives market became more volatility. Previous trade associations of the regulation on the derivatives market began to look weak, and thus exchanges as trading venues and market regulators appeared on the scene. With the constant evolution of financial derivatives and increasingly international financial derivatives market, government intervention into the derivatives market is necessary. And it is not only an objective requirement for market development, but also make up for the industry regulator and the exchange self-regulation (Kenneth K, Mwenda.Judith M, Mvula 2003(1)).

2.3.4 The need to strengthen the regulation of derivatives markets
Virtual or fictitious is the product of high economic and financial derivatives trading is an advanced stage of virtual economic development. Asymmetric information (information bias) is prevalent throughout the whole financial markets, but in the derivatives market it is particularly serious (Meyer, Jack, 1997(77)). In the conditions that the operator may not have sufficient information, in a wide variety of prices, which choose is better, the result is difficult to achieve the efficiency of resource allocation as Pareto efficiency; In addition, in the case of missing this information, the investor who will arise investment motivation with a negative incentive in the context of speculative impulse, leading the market presents a significa