(B) Improve the risk management system
After a tortuous and complicated development process, the financial derivatives market has gradually formed a relatively complete risk management system, which has both painful lessons and successful experiences, further enriching the risk management experience of the international financial derivatives market from both positive and negative aspects.
1 Form an orderly market mechanism.
To develop the financial derivatives market, we must first deeply understand the importance of risk management, which is related to the fate of the market and the decisive factor for the success or failure of the market. The fundamental plan for the healthy development of the market is to form an orderly market mechanism, which is the basic experience of financial derivatives market from failure to success, and also the experience of derivatives market development practice in various countries. The development practice of foreign financial derivatives market proves that any orderly financial derivatives market must meet the following four basic conditions. (1) Market system stability. The stability of the market system means that the market system will not be threatened by various risks, and even when a serious crisis occurs, emergency measures can be taken to remedy it. (2) Fairness of market transactions. The market is fair to all participants and should not be manipulated, and fraud and unfair competition are not allowed. The information is public. (3) The normality of market operation. Normalization of market operation means that the market operation is not only efficient and smooth, but also orderly under unified rules. (4) safeguarding the legitimate rights and interests of investors. The protection of investors' legitimate rights and interests means that the market should give legal and market operation protection to investors' legitimate income, so that investors' income can enter the account on time and in quantity. Only when the financial derivatives market meets the above basic conditions can it win investors' confidence in the market and the market develop. However, the formation and establishment of the above four conditions first depends on the ability to cope with risks. If the market itself lacks a risk management system, it is obviously far from the stability of the market. If the market is unstable, it will be difficult to operate normally and orderly, the fairness of the market will inevitably be affected, and the legitimate rights and interests of investors will not be guaranteed.
2. Strictly manage members.
The goal of risk management in financial derivatives market is to strictly manage its members. The main contents of overseas management members are as follows: (1) Asset control. The futures exchange controls the members' assets not through the registered capital of the members, but through whether the members have the amount of liquidity suitable for their trading positions. Therefore, according to the types of members, such as self-owned members (self-employed), brokerage members, non-settlement members and settlement members (the types and names of members in different countries are different) and the degree of risks brought by them in transactions, countries all over the world generally stipulate the net capital value that members must maintain. Too much net capital used by members for futures means too large positions and too concentrated risks. In this regard, the Commodity Futures Trading Commission of the United States clearly stipulates that the early warning level is when the adjusted net capital of the clearing member reaches 6% of the segregated customer's funds. When the net capital of clearing members approaches the early warning level, it must be supervised by the competent unit every month, and even in some cases, daily supervision. After the implementation of the above provisions, futures exchanges and settlement companies in many countries also stipulate the number of contracts that members trade for customers or companies at a time according to their net capital, which is called position limit, as the basis for supervising members. (2) Margin management. Generally, the margin is determined according to the price fluctuation range in a certain period and the credit status of members, taking into account the settlement method and time limit. However, the practice of various countries shows that it is not easy to determine a reasonable margin level, so many countries often make necessary adjustments according to the actual price fluctuations in the market during the implementation process. For example, the Hong Kong Futures Exchange introduced the Hang Seng Index futures price fluctuation of 600 points as a parameter. During the market 1987 crash, the price dropped sharply, but the margin level was not adjusted in time. As a result, I suffered a big loss and learned a lesson afterwards. When the price fluctuates greatly, adjust the margin level in time. There are two specific practices in various countries: one is the net margin method (the characteristics of trading 17 financial derivatives and the net position after the risk management contract is accumulated), which is more common in the futures market. The other is the total margin method (the total amount of positions after the sales contracts are added up), which is currently only implemented by the Chicago Mercantile Exchange, the the New York Mercantile Exchange and Hongkong Futures Exchanges. (3) clearing members' funds. The implementation of member capital settlement is an important measure taken by members under the background of increasing uncertainty and large price fluctuation in the financial derivatives market in recent 20 years, with the aim of letting risk makers collectively bear market risks. When the United States began to implement it, it was called clearing member credit guarantee, and many countries have also implemented this management method one after another. For example, Singapore has implemented a settlement membership contract system; After learning the lessons from the stock market, Hong Kong implemented the membership fund system as a major reform measure. How to determine the withdrawal ratio varies from country to country, but practice has proved that it is necessary to promote the settlement member funds to increase the settlement guarantee ability and strictly manage the members.
3 improve the settlement system
The basic condition of risk management in financial derivatives market is to establish a perfect settlement system. Financial derivatives trading is a credit transaction secured by a small amount of margin, which itself hides high multiple risks. The beginning of financial derivatives trading means that the occurrence of risks is first reflected by settlement, and the avoidance of risks is also carried out by settlement. Therefore, the implementation of risk management should mainly rely on the settlement operating system. However, if the settlement system is to operate effectively, it must be carefully arranged from the system. This is a very complicated system engineering, which needs scientific and meticulous design. The settlement of financial derivatives involves not only margin and daily settlement, but also member supervision and fund guarantee. When designing, we should not only consider the elements and conditions of each content, but also pay attention to their relationship. In the settlement operation mode, we should not only meet the needs of listed contracts, but also consider the extension of future financial derivatives; At the same time, we should also pay attention to the relevant situation inside and outside the market, especially the convergence of international financial derivatives settlement methods. The development practice of foreign financial derivatives market shows that the establishment of financial derivatives settlement system must follow two basic principles. First, the basic starting point of designing the settlement system should be to prevent, avoid and control risks; The second is to maintain the internal relationship among margin, daily settlement, financial audit and financial guarantee, and pay attention to improving the overall anti-risk ability of the settlement system. According to the above principles and the characteristics of market segmentation, many countries have generally formed a two-way operating system closely related to margin and daily settlement. Its operation process is roughly as follows: the customer deposit is handed over to the brokerage firm, then to the settlement member by the member brokerage firm or non-settlement member and household member, and finally to the settlement company (institute) to form a guarantee or subsidiary guarantee. The contracts between daily settlement members and settlement companies shall be summarized according to the relative quantity of warehousing and settlement on the same day, and the members shall be counted into the settlement companies before the opening of the next day. Practice has proved that such a settlement operating system is not only conducive to hierarchical control and slow down risk accumulation, but also very effective in improving the overall anti-risk ability of the settlement system.