Futures exchange is a non-profit-making economic organization, which mainly relies on collecting transaction fees to maintain the expenses of trading facilities and employees. The savings can only be used for expenses directly related to the transaction, and shall not be used for other investments or profit distribution. The purpose of a futures exchange is to provide facilities and services for futures trading. It does not own any commodities, does not buy or sell futures contracts, and does not participate in the formation of futures prices.

The role of exchange in futures market

The function of an exchange is to bring together sellers, buyers, hedgers and speculators efficiently and orderly. Futures exchange plays a very important role in the normal development of futures trading.

(1) Futures contracts shall be formulated in a unified way, and the terms of futures contracts shall be standardized in a unified way. Make the futures market highly liquid and improve market efficiency. The exchange itself does not own and cannot buy and sell contracts, but only provides a place to buy and sell contracts.

(2) Formulating rules and regulations and trading rules for futures trading, ensuring and supervising the implementation of these rules and regulations, and regulating trading behavior to the maximum extent. The exchange does not determine the price, and the price is formed through public bidding in the trading hall.

(3) To supervise and manage the trading activities of the exchange and mediate trading disputes, including disputes between traders, disputes between clients and brokerage companies, etc.

(4) Providing performance and financial guarantee for both parties to the transaction. In futures trading, both buyers and sellers take the futures exchange as their opponents, no matter who the real opponents are. This is because the futures trading mechanism requires the exchange to be "the buyer's seller and the seller's buyer" and bear the ultimate performance responsibility, thus greatly reducing the credit risk in futures trading.

(5) Providing information services and timely announcing the futures prices formed by the market to the public, which has increased the transparency and openness of the market. The exchange publishes price information to let over-the-counter traders know about the market situation.

(six) to provide settlement and delivery services for futures trading, such as recovery and repayment of deposits from members, collection of delivery payment and standard warehouse receipts.

(seven) to provide special and organized places and various facilities for futures trading, such as advanced communication equipment.

To sum up, according to the exchange, the significance of the exchange lies in its services. Without this service, it would be a mess.