Introduction of stock index futures on China's futures industry impact analysis

[Abstract] introduction of stock index futures, so that China's futures industry, the industry environment has undergone significant changes, not only will increase the futures market trading volume, and promote market expansion, and because brokers, banks, various types of funds and futures companies involved in monitoring the implementation of the classification , holding futures brokerage company will promote the rise, and to a large volume of business of futures companies to focus on.

[Keywords] stock index futures; futures industry; futures brokerage holding company

According to data released by China Securities Regulatory Commission in 2009, China's futures market turnover of 21.6 million lots, turnover was 130.5 trillion yuan, up respectively 58.2% and 81.5% with the introduction of stock index futures, ushered in China's futures market new surge of development, the futures industry, the competitive landscape will also undergo major changes.
One of China's futures market and the futures industry and the development process of China's futures market futures industry over the past 20 years the development process, through the theoretical preparation and trial (1987-1993), governance and consolidation (1993-2000), regulate the development of (2000-present) in three stages.

1.1 theoretical preparation and pilot stage, and new generation of China's futures market in the 1980s, the cause of reform and opening up. With the gradual liberalization of price controls, there have been ups and downs of farm prices, agricultural production soared to drop a series of problems. Then , whether the use of market mechanisms, production and business activities to provide effective guidance to price signals, to prevent the risk of price changes (building preservation mechanism) of the problem before the people.

October 12, 1990, the State Council approved the Zhengzhou Grain Wholesale Market with the introduction of stock futures trading based mechanisms, the development of China's futures market has taken a first step; January 18, 1992 the Shenzhen Stock Exchange opened in non-ferrous metals, May 28 Japan opened Shanghai Metal Exchange; September 1992 futures brokerage company was established in Guangdong Wantong, which is the first futures brokerage firm.

By 1993, the country reached more than 50 types of futures trading, futures brokers nearly 1000, China's futures market in the blind development of the situation.

1.2 Governance and consolidation phase in November 1993 and August 1998, the State Council has conducted two of the futures market sorted out eventually, more than 50 exchanges to be compressed into the Shanghai Futures Exchange, Zhengzhou Commodity Exchange and the Dalian Commodity three exchanges, trading varieties reduced to 12 species after re-registration and rectification, out, off a large number of failed futures brokerage firm.

1.3 specification stage of development in March 2001, National People's Congress approved the "15" plan first proposed the "steadily develop the futures market" approach, for the seven years of China's futures market straighten out a stop.

January 31, 2004, <<the State Council on promoting the capital market reform and stable development of a number of comments>> issued. The document the nature of the futures brokerage firm, the internal governance structure, development, and many made new provisions , and the move to futures brokerage firm into a competitive modern financial enterprises February 7, .2007, the State Council revised <<Exchange Management Regulations>> The Ordinance will apply to goods from the original range extended to commodity futures financial futures and options contracts, and "futures broker" to "futures company."
After 2000, China's futures market turnover and trading volume to maintain a steady development trend, the three exchange trading varieties of six from 2000 to 2009 19.

September 8, 2006, by the Shanghai Futures Exchange, Zhengzhou Commodity Exchange, Dalian Commodity Exchange, Shanghai Stock Exchange and Shenzhen Stock Exchange co-sponsored the establishment of the China Financial Futures Exchange Shanghai was set up, which opens to investors more investment channels is important, but also for the introduction of financial futures provides the basic conditions.
2 stock index futures trading volume of China's futures market, the impact of China's launch of stock index futures, the futures market from the surface more than just a new species, in essence, but then the market size of China's futures market and market structure brought about enormous changes.

The world's first stock index futures contract is the United States in February 1982, Kansas Futures (KCBT) developed by Value Line Composite Index futures contract. Since the advent of stock index futures, price risk of its transfer to achieve more and more significant role recognition and welcome, the developing extremely rapidly. Currently, there are hundreds of stock index futures contracts in all exchange-traded stock index futures market has become a major international futures species.

In many important financial markets, financial futures even more than the trading of financial products based on volume. In accordance with foreign experience, the general stock index futures trading volume reached the spot trading volume of three to five times, according to the payment of, and paid Data Exchange and the Shenzhen Stock Exchange, July 16, 2010 China's stock index futures turnover of 298.292 billion yuan, Shanghai and Shenzhen stock the same day to 104.81 billion yuan turnover, turnover of stock index futures has been close to the Shanghai and Shenzhen stock turnover three times Share the free download

Therefore, it can be expected, with stock index futures market, as well as from the securities investment funds, pension funds, insurance funds, QFII funds and other institutional investors to enter China's futures market transaction size will be drastic expansion of China's financial futures Trading will open the door, so that China's futures market has entered a new period of development.
3 stock index futures on the futures market competition pattern of China's influence in the April 16, 2010, before China's futures market as a commodity futures all listed species, and securities-related derivatives are blank, China's futures industry and the securities industry, according to their basic track run, the two not relevant. introduction of stock index futures and futures industry and the securities industry will make the relationship more closely, which is reflected in the following two aspects: First, the broker will do them through the introduction of the company holding futures brokers (Introducing Broker, IB) to participate in the stock index futures, and futures stock index futures companies to share revenue; Second investors across the two markets, investors realize the integration.

July 28, 2006, China Securities Regulatory Commission to determine the financial futures brokerage business conducted by the futures companies, securities firms can not directly involved in financial futures brokerage business, securities firms and innovation through the holding of futures for their IB services to companies involved in financial futures. Then release the <<Securities provide for the futures intermediary business pilot scheme "in the business of securities companies eligible to apply for IB to set a" wholly owned or holding a futures company, or with a futures company controlled by the same organization, "the conditions According to provisions of the securities company and its business department can only accept a futures commission company, has the appropriate risk control capacity and operating conditions of the futures company may entrust securities companies.

As of end of December 2009, there were 63 shares or holding futures brokerage companies, futures companies accounted for 163 of the existing 38.65%.

There are many traditional futures brokerage companies do not have the advantage, first, a lot of brokerage outlets, more than 100 large brokerage business department, there are dozens of small brokerage house sales department, and futures companies and more outlets, only seventy-eight sales department, a lot of futures companies only one or two business departments. Fewer outlets for futures companies to develop customer caused great obstacle. Brokerage outlets not only a large number of existing client resources, and futures companies to promote their business can be a good channel.

Second, the broker has R & D strengths, R & D personnel. The spot stock index futures price index, while the traditional advantages of futures research and development company primarily in the commodity futures, stock index of the research capabilities of far less brokerage. Brokerages background futures brokerage companies can integrate shareholders of R & D to provide customers with high quality investment advice, information providers, hedge program design and other services to attract a large number of customers. Relative to the futures brokerage holding company, controlling shareholders of the traditional spot commodity futures companies at a disadvantage in the competition.

Finally, the stock index futures to futures brokerage company background, customer channels and means to develop a fundamental change has been a long time, China's futures commodities futures clients, developed quite difficult, mainly rely on contacts, friends and business broker introduced, however, after all, a network of limited resources, recruitment and training of talent rate futures broker is usually not more than 10%, even more difficult to recruit sufficient staff. IB brokerage business to a new futures brokerage background to develop channels and means customers .'s stock index futures brokerage customers in large numbers in the sales department, brokerage sales department can provide customers with the stock, futures investment one-stop service in the historic significance of the differentiation process of futures companies, futures brokerage holding company is expected to be the main force of stock index futures, rather than holding the futures brokerage companies risk being marginalized.

China's commercial banks involved in stock index futures business approach are: to provide investors with futures futures standard mortgage warehouse receipts, transaction settlement, 保证金存管, silver futures transfer; the use of commercial banks and customers of many outlets advantage of rich resources to the right customer testimonials direct investment stock index futures, the futures intermediary company that is recommended as a customer; recommend customers to purchase and stock index futures arbitrage-linked financial products can be various types of futures companies and commercial banks, commercial banks are able to effectively use the channels and customers resources will enable the different futures business have a tremendous amount of differentiation.

September 1, 2009 by the promulgation of Commission <<Futures regulatory classification (Trial)>> requirements, according to the futures markets in risk control and influence other aspects of the evaluation scoring high and low, the futures company is divided into A , B, C, D, E five, classification will apply for increased business as a futures company types, new outlets and other matters of prudential conditions. Futures classification regulatory policy, the customer has to make large, reputable company focused on the futures trend came in Class C, D class, E class of futures companies at a disadvantage in the competition, squeezed living space, facing the customer the risk of loss, such as poor management, there may be merged or eliminated. Links to free download

In short, the introduction of stock index futures, the futures market not only means that the addition of a variety of transactions. Stock index futures trading volume of futures markets will not only greatly increased, and promote market expansion, and will promote the futures, securities and banking integration, and make the company background Futures meteoric rise, futures trading volume of large companies to focus on.

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[3] Lin Xuan. Introduction of stock index futures market impact [J]. Modern business, 2009 (9).

[4] Yi Yuan Wang. The introduction of stock index futures on the impact of China's stock market research [J]. SAR economy, 2009 (3).

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