Commodity Futures Exchanges: Historical Evolution and New Realities
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Thanks to the accelerated economic globalization, the futures market has closer ties with the national economy and spot enterprises. According to Fan, in recent years, under the wise leadership of futures-trading-forum CPC Central Committee and the State Council, the CSRC, based on China's actual conditions and general rules of the market development, has referred to futures-trading-forum of mature markets and made continuous efforts to improve the infrastructure of the futures market, thus promoting its steady development.
Firstly, the futures market is expanding continuously. All preparations for index futures have been in steady progress. Secondly, the law and regulation system has been improved gradually. A relatively complete law and regulation system has been established, futures-trading-forum the "Regulation on Administration of Futures Trading", department rules and regulatory documents.
Thirdly, the market is in smooth futures-trading-forum on the whole. While the futures prices saw great fluctuation both at home and abroad and risk futures-trading-forum happened successively on the futures-trading-forum market, the domestic futures market runs steadily, without serious market risks.
Fourthly, the structure adjustment of intermediaries has futures-trading-forum achievements. Guided by a series of systems, sincecompanies have completed equities transfer and capital increase, and 53 securities companies and other financial institutions have controlled the stocks of futures companies. Futures-trading-forum business licenses of 11 futures companies have been revoked due to their bad assets quality, long-term business suspension and hopeless implementation of rectification.
According to Fan, with turbulence of global financial market and drastic rise in prices of the raw materials, energy and agricultural products, the domestic and international futures markets are both facing complexity and variability. On the one hand, futures-trading-forum outstanding importance of the futures market demands for giving full play to the functions of future price discovery and futures-trading-forum management.
The urgent objective demands thus become the motive of the sustainable development of futures-trading-forum market.
In addition, with increasingly complicated financial technology and strengthened connection of global market, supervision over futures market and risk prevention becomes more difficult and requires futures regulatory authorities of all countries futures-trading-forum regions to strengthen cooperation in more futures-trading-forum supervision over products innovation, intermediary institutions and market trading.
Fan stressed that the CSRC would promote sound development of the futures market with the guideline of futures-trading-forum Scientific Outlook on Development. Firstly, to further consolidate the market foundation and reinforce market supervision. We will promote the construction of the operation monitoring and supervision system of futures-trading-forum futures market and continuously improve the futures-trading-forum regulatory mechanism.
In addition, we should keep high alert to the manipulations in futures-trading-forum process of price forming and eliminate them by forceful measures, to crack down on the lawbreaking including cross-market manipulation.
Secondly, to devotedly cultivate professional institutional investors. The CSRC will actively futures-trading-forum the market construction with institutional investors as the main players of the futures market, futures-trading-forum up a sound system arrangement with futures trading participation by all kinds of institutional investors.
Thirdly, to accelerate market innovation and further develop block commodities futures. Moreover, the CSRC will create conditions to futures-trading-forum the three futures exchanges in Shanghai, Dalian and Zhengzhou become price discovery and pricing centers with international influence, thus facilitating the prices in Shanghai, Dalian and Zhengzhou with more influence in China and the whole world.
Futures legislation should be forward-looking futures-trading-forum order to leave room for market innovation, set reasonable rights and obligations for all market participants, and better futures-trading-forum and coordinate the futures law with other basic legal systems.
Stable development calls for risk-avoiding mechanism and exploration of risk management tools. We should not develop derivatives by disregarding risk avoiding while making reachable innovation; we should take both risks and innovation into futures-trading-forum. According futures-trading-forum Zhou, commodity futures market plays an important role in promoting the construction of the international financial center. With the commodity futures market as the breakthrough, efforts futures-trading-forum be futures-trading-forum to accelerate products innovation, promote the listing of steel futures and steadily develop futures-trading-forum oil futures futures-trading-forum.
Meanwhile, importance should be attached to cultivation and employment of talents, reinforcement of market supervision as well as prevention and settlement of risks.