A futures company is a legally established financial institution engaged in futures business. China Securities Regulatory Commission issues licenses according to the business types of commodity futures and financial futures.
Futures is a high-risk transaction, so the exchange implements a strict membership trading system. After becoming a member of the exchange, futures companies, as a bridge between ordinary investors and the exchange, that is, investment brokers, charge fees.
Domestic futures companies can only engage in brokerage business for a long time. After 20 12, it is allowed to engage in some spot and asset management businesses, and it must be carried out through subsidiaries.
Extended information futures traders are the main body of the futures market, and it is precisely because futures traders have the demand for hedging or speculative profits that they promote the emergence and development of the futures market.
Although every trader wants to trade directly in the futures market, due to the high risk of futures trading, it is decided that the futures exchange must formulate a strict membership trading system, and non-members are not allowed to enter the market for trading. Therefore, there is a contradiction between strict membership trading system and attracting more traders and expanding the market scale.
Futures companies buy and sell futures contracts and handle settlement and delivery procedures on behalf of customers; Manage customer accounts and control customer transaction risks; Provide customers with futures market information, conduct futures trading consultation and act as trading consultant for customers.
In order to protect the interests of investors and increase the ability of futures brokerage companies to resist risks, the futures regulatory departments of various governments and futures exchanges have formulated corresponding rules to restrict and regulate the behavior of futures brokerage companies.
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