Large-scale declaration system of American futures market
(A) the executor of the "American Report"
The declaration system of American large households is divided into two levels: one is CFTC level and the other is exchange level.
Authorized by the Commodity Exchange Law, CFTC can collect the required market data and position information from exchanges, clearing members, commission agents, foreign brokers and dealers.
According to the law, all exchanges are also obliged to implement self-regulatory supervision on listing contracts, including large-scale reporting. Taking CME as an example, exchanges generally require ClearingMember, OmnibusAccount and foreign brokers to report to any customer who meets the reporting standards every day. The contents of the report include position and delivery notice.
(b) Reporting standards for the American family
CFTC mainly considers the total short positions in a specific market, the size of positions held by market traders, the monitoring history of the market and the inventory in the physical delivery market when formulating the reporting standards for large traders. CFTC's declaration level ranges from 25 lots to 3000 lots. According to CFTC statistics, the positions reported to large investors account for 70%-90% of the total market positions. CFTC has mastered the information of most positions in the market through large household reports.
The reporting standards for large households stipulated by the exchange shall not be higher than those stipulated by CFTC. The reporting standards vary according to different listed varieties. Take NYMEX as an example, some varieties have only 25 contracts.
Generally speaking, the declaration standard for large households in the United States is low, and there is a phenomenon that "large households are not big". Due to the large number of applicants, CFTC and the exchange have to invest a lot every year to maintain the operation of the big declaration system, but the big declaration system is still listed as a legal obligation, which shows the important position of the big declaration system in the US market supervision.
As far as the declaration of large accounts is concerned, consolidated accounts, like settlement members and foreign securities firms, need to report the customer transactions and position information of subordinate customers who have reached the position limit, position responsibility declaration level and large account declaration level to the exchange every day.
(3) Procedures for reporting American extended family
1. Exchange is responsible for reporting the data of each clearing member to CFTC.
The exchange must provide CFTC with the total position and trading behavior of each clearing member. The Exchange reports the position data, trading data, cash forward data and futures delivery notice of each clearing member through contracts every day. The data of settlement members are submitted to CFTC in the form of electronic data by the exchange every day and delivered before 6:5438+02 pm on the same day.
2. Clearing members, commission agents and foreign brokers are responsible for reporting customer data to CFTC.
Clearing members, commission agents and foreign brokers (collectively referred to as "reporting companies") must report customer data that meet the reporting standards to CFTC. When the customer's first-hand position meets or exceeds the reporting standard stipulated by CFTC, the "reporting company" shall report to CFTC on the same day and fill in the "Special Account Identification" (form 102). The contents of this table mainly include account data, transaction information, actual account control relationship, net position, total position and other information.
According to the contents of the first report (Form 102), the "reporting company" reports the futures and options positions of its major customers to CFTC after the daily closing (the positions reach or exceed a certain reporting level). The customer data declaration is sent by the "reporting company" in the form of electronic data or other means agreed by CFTC.
3. Clearing members, commission dealers and foreign brokers report data to the Exchange.
In addition to the bulk declaration system implemented by CFTC according to law, the exchange is also obliged to implement self-regulatory measures including position restriction and bulk declaration of listed contracts according to law.
Taking CME as an example, according to the rules of the exchange, clearing members, futures brokerage comprehensive accounts and foreign brokers should not only declare their position data to the exchange every day, but also declare customers who meet the reporting standards of large exchange households. The reporting standard (i.e. the reporting threshold) varies with different listed varieties. Some varieties have a reporting threshold of only 25 contracts (long or short), while others have a reporting threshold of 850 contracts. Compared with CFTC, the standard set by CME is relatively low. Under normal circumstances, the "reporting company" will automatically send the relevant forms to the "big account reporting system" of the exchange according to the customer's position. At the same time, CME stipulates that clearing members should also provide the 102 form to the exchange when providing it to CFTC.
(d) Monitoring and verifying the reports of the American family.
1. Accuracy of extended family report
CFTC uses two methods to ensure the accuracy of data reported by large households. The data submitted by each "reporting company" should be cross-checked with the data submitted by the exchange every day. CFTC may investigate and ask the "reporting company" or the exchange about any contradiction between the two sets of data. In addition, the relevant personnel of CFTC market supervision department regularly conduct on-site audits of "reporting companies" and compare the data obtained on the spot with the data submitted by these companies to CFTC.
2. Punishment for violating the reporting system of large households
Although CFTC has limited verification methods for data reported by large households, it can punish concealment, false reporting and omission according to law to increase the deterrent effect.
Articles 6(c) and 6(d) of the Commodity Exchange Act of the United States stipulate that if CFTC has reason to believe that any person intentionally makes false or misleading statements about important facts in any registration application or report submitted to the Commodity Futures Trading Commission under the Act, or any person intentionally omits important facts that should be stated in any of the above-mentioned applications or reports, CFTC may "impose a fine on that person" according to this article.
20 1 1, CFTC punished Newedge Company for violating the large household reporting system. CFTC found that Newedge had failed to submit timely and accurate reports to CFTC for a long time. 20 1 1 From March to July, 2008, there were a lot of errors in the big account report submitted by Newedge Company to CFTC, such as incorrect commodity coding, overestimating or underestimating the number of positions, etc. After being reminded by CFTC, Newedge still failed to solve the problems of its big user reporting system in time. Therefore, according to Article 6 (c) and Article 6 (d) of the Commodity Exchange Law, CFTC reached a lawsuit settlement with Newedge Company on 20 12 1.9, demanding that Newedge Company pay 700,000 US dollars in civil compensation and promptly eliminate its violation of the large household reporting system.
(e) The effectiveness of the American extended family reporting system.
Generally speaking, the results of the American big family report are mainly manifested in the following aspects:
First of all, tap the market information and master the market structure. The information of major investors in the market can be grasped in time through the big account report system, and the exchange obtains customer position data from the settlement members through the big account report.
Second, implement the position limit to prevent and investigate illegal acts. The futures market in the United States implements a perfect position restriction system, but there are many contracts and various trading places in the futures market in the United States, and customers have no requirements from the real-name registration system. In order to implement the position limit system, American regulatory authorities must rely on the large household reporting system to grasp the customer position data and find clues of illegal activities such as market manipulation in time.
Third, release large position data in time to ensure open and transparent market. After the data collected by the large household reporting system is summarized, it will be announced to the public every week to improve market transparency.
Comparison of reporting systems of large futures markets between China and the United States
The large household reporting system has played an active role in preventing market risk accumulation and cracking down on illegal activities such as manipulation. There are some similarities between the reporting systems of large investors in China and the United States. In the course of its development, China futures market has absorbed the successful experience of American market for decades. By introducing this system into China, we can take precautions and guard against risks. However, due to the differences in trade environment, market structure and rules and regulations between the two countries, the contents and forms of the report are also quite different.
(A) the implementation background is different
Due to the large number of participants in the futures market in the United States, the market structure is complex, and mixed-code transactions, regulators including CFTC and exchanges must grasp the market trading positions of members or customers through large-scale reporting systems.
China's futures market implements a one-account-one-yard system, and real-name registration system opens an account. In addition, the China Futures Margin Monitoring Center has been established, which enables the regulators to know the information of customers' transactions, positions and accounts, and is less dependent on the reports of big customers.
Different reporting standards
The large-scale declaration system in the United States is the main means to grasp the trading position information of members or customers. Therefore, the reporting standard is relatively low, and hundreds of thousands of large-scale reports are received every day. However, the reporting standard of large investors in China's futures market is generally high, generally 80% of the position limit of futures contracts.
Some agricultural futures varieties with legal position limits, such as grain, soybean, cotton, etc. If the hedger's position exceeds the position limit, it must also be reported to CFTC every month. However, China's commodity futures market only requires the declaration of speculative positions, and members or customers who participate in hedging do not need to declare large households.
(3) Associated accounts are handled in different ways.
Judging from the situation in the American futures market, if a customer owns or controls multiple accounts in multiple settlement companies, these accounts will be merged into a total account for reporting in the large account reports of exchanges such as CFTC or CME.
In China's futures market, due to the introduction of the actual control relationship account soon, the relevant systems are gradually improving. The large account report currently implemented by the Exchange has not consolidated the positions of such accounts, but only summarized the positions of the same customer in different members.
Different coercive measures
The mandatory measures for large-scale declaration in Chinese and American futures markets are also different. The Commodity Exchange Law of the United States clearly stipulates that anyone (including members or customers) who intentionally makes any false or misleading statements about important facts in any registration application or report submitted to CFTC will be punished by CFTC.
However, China's "Regulations on the Management of Futures Trading" does not clarify the legal responsibility of members and customers of futures companies not to implement the large-value declaration system.
Suggestions on the relevant systems of domestic futures market
(a) adjust the reporting standards for large households to enhance flexibility and pertinence.
First, the reporting standard for large households currently adopted by the three major commodity exchanges is 80% of the position limit. This fixed standard has been used for a long time, so it is suggested to formulate more flexible regulations to allow exchanges to raise or lower the reporting standard according to the actual situation and risk status of varieties.
Second, consider setting standards for reporting large households according to varieties. For example, although some customers fail to meet the reporting standards of a single futures contract, they may also be required to report to the exchange a large number of customers with a large number of total positions and high shares in a single variety of contracts.
Thirdly, with reference to the experience of mature international markets, the actual control relationship account should be included in the scope of large household declaration standards.
(b) Improve the contents of large household reports and increase the types of large household reports.
Scientifically set the declaration content of large households, simplify the declaration form and eliminate duplicate information. At the same time, more reasonable declaration contents such as position intention and actual control relationship account will be added.
In addition to the existing regular periodic reports, the following types of reports can be considered as supplements: First, for customers who have reached the level of large-sum reporting for the first time, a targeted first-time large-sum reporting system can be established to fully understand their transaction nature, actual control relationship, main business and other contents. Second, drawing lessons from the "special report" system in the United States, the exchange will issue a particularly large report notice to members or customers who may lead to risks. The third is to strengthen the hedger's regular reporting obligation. The hedger is required to disclose and update its important information in a timely manner, including the hedging type, hedging object, basic information of legal person, relationship, etc.
(Chen Jianping, head of the research group of "Research on American Futures Market Supervision" of Shanghai Futures Exchange, and Lu Qingjie, coordinator, author: Lu Jie, Xu Tao)