Section 1 Formation and Development of Futures Market
I. Meaning of futures, forwards, swaps and options
(1) A futures contract is a standardized contract made by a futures exchange, which stipulates that a certain number of subject matter will be delivered at a specific time and place in the future.
(2) A forward contract refers to a contract in which both parties agree to buy and sell a certain number of certain underlying assets at a certain price at a certain time in the future.
(3) Swap refers to a contract in which two or more parties exchange a series of cash flows within the agreed time according to the agreed conditions. Because the two sides of the swap will agree to exchange cash flows many times in the future, the swap can be regarded as a series of long-term combinations.
(4) Option is an option, that is, the buyer's right to buy or sell the agreed subject matter at a pre-agreed price in a specific time or period in the future.
Second, the formation and development of Chinese and foreign futures markets
1. landmark event
(1) 1848 82 grain traders initiated the establishment of the world's first standardized futures exchange-Chicago Board of Trade (CBOT).
(2) 1882, the exchange allows hedging to be exempted from performance obligations, which further promotes the participation of speculators and increases the liquidity of the futures market.
(3) 1972 In May, CME established the International Money Market Division (IMM), and launched foreign exchange futures contracts including pound sterling, Canadian dollar, German mark, French franc, Japanese yen and Swiss franc for the first time.
(4) 1975 10, the national mortgage association bond (GNMA) futures contract is listed on the Chicago futures exchange, which is the first interest rate futures contract in the world.
(5) In March 2000, the Stock Exchange of Hong Kong and the Hong Kong Futures Exchange completed the shareholding system reform and merged with Hong Kong Securities Clearing Company Limited to form Hong Kong Exchanges and Clearing Limited (HKEx).
(6)199010/0/0 12, approved by the State Council, Zhengzhou Grain Wholesale Market was launched as the first commodity futures market in China to introduce futures trading mechanism.
(7) China Futures Margin Monitoring Center was established in May 2006. As the safe depository of futures margin, the monitoring center has played an important role in effectively reducing the risk of margin misappropriation, ensuring the safety of futures trading funds and safeguarding the interests of investors.
(8) The establishment of China Financial Futures Exchange in September, 2006 marked that China futures market entered a new stage of common development of commodity futures and financial futures.
True question 1. 1? In China, () is responsible for the safety monitoring of futures margin.
A. foreign exchange futures
B. China Futures Market Monitoring Center
C. China Futures Association
D. China Securities Regulatory Commission
Answer b check the answer.
China Futures Margin Monitoring Center was established in May 2006. As the safe depository of futures margin, the monitoring center has played an important role in effectively reducing the risk of margin misappropriation, ensuring the safety of futures trading funds and safeguarding the interests of investors.
2. Types of commodity futures and financial futures
The types of commodity futures are shown in figure 1- 1.
Figure 1- 1? Types of commodity futures
The types of financial futures are shown in figure 1-2.
Figure 1-2? Types of financial futures
True question 1.2? Which of the following commodity futures does not belong to energy futures? ) futures.
A. Fuel oil
B. crude oil
C. Iron ore
D. thermal coal
Answer C View the answer
At present, NYMEX and ICE in London are the most influential energy futures exchanges in the world, and their listed products include crude oil, gasoline, heating oil and ethanol. Item C belongs to metal futures.
Part two? Main characteristics of futures and derivatives
First, the basic characteristics of futures trading
Futures trading developed on the basis of spot trading and forward trading. Futures trading is an extreme form of separation of business flow and logistics.
The basic characteristics of futures trading are shown in table 1- 1.
Table 1- 1? Basic characteristics of futures trading
True question 1.3? The following statement about the basic characteristics of futures trading is wrong. )。
A. Futures contracts are standardized contracts formulated by exchanges.
B. Commodity futures trading realizes the separation of business flow and logistics.
C ordinary investors can enter the futures exchange for futures trading.