Futures in China
Introduction 2014-06-23


With the approval of the State Council and the authorization of China Securities Regulatory Commission (CSRC), China Financial Futures Exchange (CFFEX) was jointly founded by Shanghai Futures Exchange, Zhengzhou Commodity Exchange, Dalian Commodity Exchange, Shanghai Stock Exchange and Shenzhen Stock Exchange on September 8, 2006 in Shanghai, with the registered capital of RMB500 million. The establishment of CFFEX is of strategic significance to deepening reform on the financial market, perfecting the financial market system, and exercising the function of the financial market.


CFFEX aims to develop the socialist market economy and maintain the normal order of the financial market by perfecting the capital market system, exercising the function of the financial futures market, safeguarding the normal trading of financial derivatives including financial futures, and protecting trading parties'lawful rights and interests and the common interests of the public.


Among CFFEX's main functions approved by CSRC are organizing and arranging the listing, trading, clearing and settlement of financial derivatives including financial futures, formulating business management rules, carrying out self-management, releasing market trading information, and providing technology, venues and facility services.


Learning from global markets'advanced experience in trading mode and clearing system, CFFEX builds China's financial derivative market in the principle of high jump-off places and high standards, and in line with the reality of China's market.


CFFEX adopts a clearing membership, dividing its members into two categories: clearing members and non-clearing members. Specifically, the clearing members are classified into trading and clearing members, general clearing members and special clearing members. The clearing membership formed a multi-layer risk control system, thus improving CFFEX's overall risk resistance capability.


Due to the adoption of an electronic trading mode, CFFEX has no trading hall or floor traders. The bidding for the financial futures products is carried out through computer systems. Transactions are made by the trading system through automatic matching on the basis of price priority and time priority. The adoption of the electronic trading mode embodies CFFEX's efficient and transparent development idea of global clout.


Shouldering the tough task of establishing and developing China's financial futures market, CFFEX will devote itself to building a healthy, standardized, efficient, transparent, innovative and technologically advanced financial futures exchange with the guidance of the Scientific Outlook on Development and in line with the principle of steady growth and advancing with the times, thus contributing to the improvement of risk tolerance and flexibility of economy as well as the promotion of economic growth.