Financial innovation and reform of futures market and industry go hand in hand in many aspects, such as regulatory system reform, product expansion, business innovation and so on. In the aspect of regulatory system reform, it is mainly to promote the reform of handling fees, hedging, arbitrage, margin and position limit in the futures market to improve market efficiency.
In terms of product innovation, close to the needs of agriculture, countryside and farmers, develop more securities and futures products for agriculture and farmers, and develop financial products such as treasury bonds futures and stock options; In terms of business innovation, the CSRC supports the business innovation of futures companies, promotes the pilot of overseas brokerage business and customer asset management, promotes the pilot of specialized futures investment funds, and supports qualified futures companies to issue shares.
A futures contract is a standardized contract made by a futures exchange, which stipulates to deliver a certain quantity and quality of the subject matter at a specific time and place in the future.
Futures commission: equivalent to the commission in the stock. For stocks, the expenses of stock trading include stamp duty, commission and transfer fees. Relatively speaking, the cost of engaging in futures trading is only the handling fee. Futures commission refers to the fees paid by futures traders according to a certain proportion of the total contract value after the transaction.
Futures delivery refers to the process that when a futures contract expires, both parties to the transaction settle the expired open contract by transferring the ownership of the goods contained in the futures contract.
Initial margin is the money that traders need to pay when they open new positions. According to the transaction amount and the margin ratio, that is, initial margin = transaction amount * adjusted margin ratio. At present, the minimum margin ratio of China's futures margin system is 5% of the transaction amount, which is generally between 3% and 8% internationally.
When the book balance of the margin is lower than the maintenance margin, the trader must make up the margin within the specified time to make the margin account balance (settlement price x position x margin ratio), otherwise the exchange or institution has the right to carry out compulsory liquidation on the next trading day.
Settlement refers to the settlement of the trading gains and losses of both parties according to the settlement price announced by the futures exchange.
Delivery refers to the process that when the futures contract expires, according to the rules and procedures of the futures exchange, both parties to the transaction transfer the ownership of the goods contained in the futures contract and finally settle the contract at the end of the period.
Futures are divided into commodity futures and financial futures. Commodity futures are divided into industrial products (which can be subdivided into metal commodities (precious metals and non-precious metals) and energy commodities), agricultural products and other commodities. Financial futures are mainly traditional financial commodities (tools) such as stock index, interest rate and exchange rate. All kinds of futures trading include options trading.