CME announced the new rules of metal price fluctuation, and the gold fuse machine was set at 400 dollars. The fuse mechanism is one of the institutional innovations made by CICC on the basis of learning from foreign experience and the actual situation of China's capital market. At present, domestic stock trading and commodity futures trading have not introduced the fuse mechanism. At the beginning of the innovation and development of financial futures, China Financial Futures Exchange took the lead in introducing the fuse system as an important risk management system with reference to international advanced experience, with the aim of better controlling risks and providing shock absorbers for market transactions. The essence of using the transitional gate set before the opening of the price limit system is to give the market a certain cooling-off period to warn investors of risks in advance and win time and opportunities for relevant parties to take relevant risk control measures and means.

The function of stock index futures fuse system is mainly manifested in the following aspects. From the design of the fuse mechanism of stock index futures in China, the fuse point of% was introduced before the market fluctuation reached the limit of%, that is, the index point of stock index futures rose or fell by%, that is, the index quotation could not exceed the fuse point in the subsequent minute trading, which not only warned the traders of stock index futures, but also provided risk management for all levels of futures trading. Warnings, including strong reminders to traders of futures, stock index futures, agent members, settlement members and exchanges, make them aware of what the future trade will be like and take corresponding preventive measures so that trading risks will not suddenly occur without any warning.

In order to gain thinking time and operation time to control the trading risk, when the market fluctuation reaches%, there will be a one-minute transaction in the fuse point, which is enough for traders to consider the risk management method, and after the transaction is resumed, they will reach the exchange and let the computer host match the trading instructions that reflect their own operating wishes.

It is conducive to eliminating outdated prices that lead to the decline in liquidity in the futures market. In the unilateral market with abnormal fluctuation of stock index futures, the normal display of the market will be delayed due to the blocking of a large number of buying or selling orders, which will lead to the outdated price. At this time, the price people see is actually the last-minute price. At this price, the transaction must not be closed, and the continuous entry of orders into the trading system will cause more serious transaction congestion and make the data display lag. With a fuse period of minutes, we can eliminate the congestion of the trading system, eliminate outdated prices and ensure the smooth progress of the transaction.

It provides an institutional guarantee for gradually resolving transaction risks. When there is an extreme market with abnormal fluctuation, the market without fuse mechanism will run amok. Usually, it takes months or even a year to complete the fluctuation in an instant, which will make the wrong traders and accounts with less than one or even several times of the trading margin be quickly penetrated, which will increase the difficulty of settlement and bring countless disputes.