China Futures Association
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| China Futures Association | |
| |
| Founded | 2000 |
|---|---|
| Headquarters | Beijing |
| Products | |
| Web site | http://www.cfachina.org/ |
The China Futures Association (CFA) was established on Dec. 29, 2000, and it is registered and headquartered in Beijing. The effort to set up the CFA started in 1995, based on the "Social Group Registration and Management Act" for the establishment of a nationwide industry self-regulatory organization, as a non-profit social group corporation. The CTA is supervised by the China Securities Regulatory Commission and other agencies that regulate state social groups. CFA's foundation was intended to promote market development.[1]
Contents |
History of Futures in China
Main article: History of Futures in China
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China's futures market, set up in 1990, experienced a quick expansion until the mid 1990s, when loopholes in the regulatory scheme led to irregularities like fraud and strong speculation.[2]
A host of scandals forced the authorities to start cleaning up the market. Many futures exchanges and brokerages were closed down and some products were suspended from trade. China shut its bond futures market and barred the trade of financial derivatives, limiting China's exchanges to handling futures based on commodities. In 2005, China bond forward trading was introduced in the marketplace. This was seen as a positive step toward the development of other needed derivatives.[3]
Transaction volume, which totalled 10 trillion yuan (US$1.2 trillion) in 1996, declined to a low of 1.6 trillion yuan (US$192 billion) in 2000. It recovered to a record high of 11 trillion (US$1.3 billion) in 2004.[4]
Products and Services
Membership
The CTA mainly consists of futures brokerage companies as corporate members and futures exchanges as special members. "Corporate members" refers to futures brokerage companies and other institutions that the China Securities Regulatory Commission approves and regulates. As of September 2003, the CFA has a total of 189 members, including 186 corporate members and three special members. CFA members are located throughout the country, but mostly in Shanghai, Beijing, Zhejiang, and Guangdong.
Key People
Resources
Charter of the China Futures Association
References
- ↑ Chinese Futures Association Established. People's Daily. Retrieved on May 27, 2008.
- ↑ Scandal Besets Chinese Markets. The New York Times. Retrieved on May 27, 2008.
- ↑ China Bond Forwards Seen as First Step in Financial Derivatives Development. Forbes.com. Retrieved on May 27, 2008.
- ↑ Brighter Prospects for Chinese Futures Market. China Daily. Retrieved on May 27, 2008.
