In addition, it is also responsible for all the affairs of futures companies (or self-operated members) in the exchange, such as deposit and withdrawal transfer, signing documents, attending and voting at temporary meetings of the exchange, etc.
In the exchange, the red vest represents the futures company (self-operated member), so each red vest has a power of attorney for the market representative (trader) issued by the futures company (self-operated member) to the exchange, which reads "xx Company authorizes xxx to be the market representative of our company in the xxxx exchange ...", and the following shall be signed and sealed by the legal representative or general manager of the company.
People who make red vests require clear speech, flexible mind, quick response, very skilled computer operation and fingering, and also need the most basic knowledge of futures trading. Generally, the exchange needs to organize 2-3 days of specialized training, but it is only some basic trading terminal operation skills and basic futures knowledge, which is not very complicated. Then authorized by the futures company (self-operated member), it is called red vest and does not need the approval of the exchange. The approval of the exchange is just a formality, and it will agree.
In the early days, there was no computer remote self-service trading system, and the declarations of futures companies (customers) were all entered through red vests, so the requirements for red vests were very high at that time. At present, many senior leaders of futures companies are from red vests.
Now online trading is adopted, so the red vest in the venue is very idle, just staring at the trading terminal in case of line failure, and all operations have nothing to do with the red vest. Therefore, many people who are new to futures companies are not familiar with the concept of red vest, and they think that traders are giving orders themselves.