Foreign exchange futures
A futures exchange is a place that specializes in buying and selling futures contracts. At present, futures exchanges around the world are generally non-profit member organizations. Only those who have obtained the qualifications of the Board of Directors of the Exchange can enter the exchange venue for futures trading, and non-members can only conduct futures trading through member agents. The management body of a futures exchange usually consists of the board of directors, the executive body and various committees. The board of directors is elected by member directors and non-member directors; The executing agency shall assist the board of directors to perform business-related duties; Establish a president and executive officer; Subordinate committees, including trading management committee, education and marketing committee, conference committee, arbitration committee and futures contract committee, are responsible for specific business work. The futures exchange itself does not participate in futures trading, and its operating funds mainly rely on the investment, membership fees and handling fees charged by the founders. Its functions are: providing trading places; Formulate standard trading rules; Responsible for supervising the implementation of trading rules; Formulate standard futures contracts; Solve transaction disputes.
Exchange member
Obtain membership by applying to the relevant departments and obtaining their approval. Members must pay an annual fee. Members in the exchange are generally divided into two categories: one is to act as brokers, buy and sell on behalf of customers, and collect commissions; Second, as a dealer, self-employed, earn profits. Customers who are not members of the exchange can only entrust members to trade.
futures commission merchant
According to the division of functions, futures dealers can be divided into floor brokers and floor traders, and the same member can hold two positions concurrently. Anyone who has a membership and enters the futures exchange for trading is called a floor trader. Some floor traders only trade for their own interests; More often, we accept a large number of trading orders outside the exchange and conduct futures trading according to the trading orders of OTC customers. We call the former a professional speculator and the latter a field broker. Those who trade with their own accounts are called floor traders.
A futures commission merchant is a member company registered in a futures exchange. The company sent their employees as representatives. Its main functions are: providing services to customers and completing trading orders; Record the customer's profit and loss, and act as an agent for the actual delivery of futures contracts; Handle customers' deposits; Provide customers with decision-making information and consulting services. [ 1]
Forex futures trading is mainly conducted by floor brokers of futures exchanges and futures commission brokers who replace non-members.
clearing house
Clearing house is an independent institution of futures exchange responsible for futures contract delivery, hedging and settlement, and it is the core of the operating mechanism of futures market. Through the clearing house, the transfer, transaction and actual delivery of futures contracts can be carried out at any time without notifying the counterparty, and the clearing house is responsible for unified settlement, liquidation and handling of goods delivery procedures. This is the special "alternative function" of the clearing house. These actions of the clearing house can be successfully realized because of its strong financial resources and the implementation of the deposit system, which is a strict debt-free financial operation system.
Market participants
According to the purpose of trading, market participants include hedgers and speculators. Both of them are indispensable parts of the futures market. Without hedging, there is no futures trading market, and without speculators, hedging cannot be realized.