Abstract: The object of this article is the legal relations that emerge in conclusion of transactions with the credit default swaps. The subject of this article is the combination of legal norms that regulate the peculiarities of conclusion of transactions with credit default swaps in the European Union, the concept of this financial derivative, and its impact upon the global financial crisis of 2007-2009. The credit default swaps (CDS) were initially introduced in the mid 1990’s in the United States for the purpose of hedging the risks of corporations; however, within a short period of time, CDS have become the most popular financial derivatives in the world. The unconscionable and excessive application of CDS played a fatal role in the evolvement of world financial crisis of 2007-2009. In response, the world leaders initiated the elaboration of legal regulation of CDS. The European Commission was responsible for the preparation of the reform in the EU. In 2012 have been adopted the first documents regarding the CDS regulation. The current CDS legal framework is based on the requirements for providing information on certain transactions to the competent authorities of the European Union, adherence to the transparency regime and undergoing the central counteragent clearing processing. The question of legal regulation of CDS in the European Union is relatively new to the Russian science and have not yet received a sufficient coverage. The relevance of this work is defined by the high impact of the indicated financial derivatives upon the global economy. Considering the immense volumes of CDS world market and the popularity of this financial derivative, the materials can be used in formulation of the analogous regulations in the Russian legislation, as well as realization of commercial activity on the financial market.

Abstract: This research is aimed at analysign the influence of derivative financial instruments (hereinafter referred to as DFI) on the development of the world financial crisis of 2007 - 2008. The researcher focuses on the state of financial markets where the crisis started as well as the actions of the global community and particular states that were undertaken to overcome the crisis. As a consequence of the world financial crisis of 2007 - 2008, financial and nonfinancial institutions all over the world incurred serious damage and loss. Thousands lost their work, the inflation rate boosted up, and the states were unable to perform their obligations. In the course of writing his article Kriger applied such methods as analysis, synthesis, deduction, analogy, formalisation and abstraction. The researches undertaken by experts in different spheres demonstrate that the world financial crisis was the result of complex problems that related to regulation, prediction and analytics on economic markets of different states. Both researchers and analytics repeatedly admitted that DFI were one of the reasons of the world financial crisis. In this research Kriger tries to answer the question about whether the world financial crisis was actually the result of the wrong use of DFI or other factors influenced the economic state of world countries.