China Financial Futures Exchange
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| China Financial Futures Exchange | |
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| Founded | 2006 |
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| Headquarters | Shanghai, PRC |
| Key People | Eugene Zhu, CEO; Hu Zheng and Li Zhengqiang, Deputy CEOs |
| Products | Financial derivatives exchange |
| Corporate Website | www.cffex.com.cn/en_new |
The Shanghai-based China Financial Futures Exchange (CFFEX) is an electronic platform for financial derivatives, owned by the country's three existing commodity derivatives exchanges and two stock exchanges. 84 members, which consist of 14 general clearing members, 45 trading and clearing members, and 25 trading members, were approved as of April 2, 2008. Moreover, an additional three trading and clearing members and two trading members were approved on July 23, 2008, according to CFFEX's official Chinese language website.
The China Financial Futures Exchange ranked as the world's 29th-largest derivatives exchange according to the Futures Industry Association's volume rankings for 2010. 2010 was the first year that the exchange began trading.[1] The FIA report, published in March 2011, states that the total amount of futures and options traded on the exchange was more than 45.87 million contracts.
Background
The CFFEX was inaugurated on Sept. 8, 2006 in Shanghai with a registered capital of 500 million yuan. China's two stock exchanges, Shanghai Stock Exchange and Shenzhen Stock Exchange, as well as three futures exchanges, Shanghai Futures Exchange, Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange each hold a 20-percent stake.[2]
The new exchange was expected to start trading in mainland stock index futures - initially based on the CSI 300 Index. The contract began mock trading in October 2006 and had specifications that made it expensive for small retail accounts to participate casually. Options on the futures and Treasury futures were expected to follow. Trading of the contract at that time ran from 9:15 a.m. to 11:30 a.m. and 1 p.m. to 3:15 p.m. In January 2010, the China Securities Regulatory Commission (CSRC) set rules for index futures trading on the CFFEX in an effort to limit risk. Investors were required to have 500,000 yuan ($73,250) in order to open a new account, and had to pass an examination on futures trading.[3] In June 2011, the CSRC published rules for investment in stock index futures by qualified foreign institutional investors. Such investors were bound by threshold, account and trading code obligations.[4]
Mock trading of 5-year government bond futures was announced to begin on Feb. 13, 2012, at a coupon rate of 3 percent.[5]
Eugene Zhu, the former head of the DCE and chairman of the China Futures Association, was appointed to head the CFFEX by the China Securities Regulatory Commission.
Contracts to be Listed
External Links
References
- ↑ 2010 Annual Volume Survey. Futures Industry.com.
- ↑ China financial futures exchange set up in Shanghai. PRC Embassy, USA.
- ↑ China sets index futures trading rules to limit risk. Reuters.
- ↑ ANALYSIS: China’s New Investment Channel For Qualified Foreign Institutional Investors. Bloomberg BNA.
- ↑ Mock Trading of Bond Futures to Begin Monday. The Economic Observer.
