The concept and function of futures exchange;
1 Provide trading places, facilities and services.
Futures trading is conducted on the floor, and all trading orders must be traded by centralized bidding on the exchange. A futures exchange must provide a set of hardware facilities such as trading places, necessary facilities, advanced communication equipment and modern information transmission and display equipment for futures trading, supplemented by perfect and thoughtful supporting services.
Design the contract and arrange the listing of the contract
It is one of the important functions of the futures exchange to formulate standardized contracts and arrange the listing of contracts. Futures exchanges should develop futures varieties according to demand, carefully design and select new futures contracts for timely listing; Reasonable design of contract terms and details to meet the investment needs of traders.
3. Formulate and implement the futures market system and trading rules.
The futures exchange controls market risks from the elders of the market and ensures the smooth and orderly operation of the futures market by formulating a series of systems such as margin system, price limit system, position limit system, large position reporting system, forced liquidation system, debt-free settlement system and risk reserve system.
4. Organize and supervise futures trading and monitor market risks.
On the basis of formulating the trading rules of the futures market, the futures exchange organizes and supervises the futures trading, ensures the efficient and orderly implementation of the futures market system and trading rules, dynamically monitors the market risk situation, and timely resolves and prevents market risks.
5 release market information
The futures exchange shall promptly announce the futures prices and related information in the exchange to members, investors and the public.
To sum up, the futures exchange is open, fair and transparent, because it organizes and supervises futures trading on the basis of a clear system, which shows that the futures exchange can effectively ensure the efficient, orderly and safe operation of the market.