On the 7th CIOC held on November 7, Zhang Yujun, a member of CSRC Party Committee and assistant chairman of CSRC, said that CSRC, by firmly following the fundamental purpose of letting finance serve real economy and always adhering to the principle of advancing steadily, has promoted various reforms and innovations of futures market. The total trading volume and value of the first ten months this year reached 1.15 billion contracts and CNY 134.73 trillion, up by 32.5% and 18.4% year-on-year respectively. Futures market continues to maintain sound and stable development momentum.
He pointed out that the good development trends in futures market are mainly shown in the following four aspects. The first aspect lies in conducting futures products and futures firm innovation. Currently, the building of the market of crude oil futures and government bond futures is actively promoted, and glass futures have obtained the approval of the State Council. The futures of coke, rapeseed, rapeseed meal and eggs are also in progress. And great progress has been made in the new trading instruments including commodity index, carbon emission right and options, and strategic research and development work as well. Meanwhile, the pilot methods for the management of futures company assets were promulgated and implemented recently and innovation work goes on smoothly.
The second aspect lies in promoting the reform of futures regulatory system to strive to increase market efficiency. Since the beginning of this year, the futures exchanges have lowered the service fee twice this year, with an overall drop of 44%. CSRC, based on the principle of easing control and strengthening regulation, further simplifies administrative permission and perfects the regulation of net capital and the usage of futures firms’ self-possessed funds. Significant progress has been made in the building of the comprehensive information system for futures firm regulation.
The third aspect lies in the improvement of futures market laws and regulations and the deepening of the functions of futures market. A few days ago, the State Council officially promulgated “Administrative Regulations on Futures Trading”, and actively organized and made the forward-looking researches and basic investigations on the legislation of futures law. An assessment system including 13 items and 135 indicators has been primarily established, to drive exchanges to perfect regulation and rule service, to better help real economy develop soundly and improve the professional level of futures firms in serving real industry.
The fourth aspect is to promote the opening-up of futures market and improve the internationalization level of the market. We should earnestly study and prove the basic concept and the general plan to promote the opening-up of China’s futures market with crude oil futures as a breakthrough, in accordance with the basic guidelines on opening-up of “being based on China’s situation, pursuing orderly and gradual development, double win and mutual benefit, and making competition and cooperation in a safe and controllable manner”. We should accelerate the researches on overseas futures brokerage, expand the experiment with bonded delivery in futures market, prepare the policies and regulations related to the practices that foreign capital holds the shares of futures companies, and introduce methods for overseas investors’ participation in domestic futures market.
The assistant chairman said China Securities Regulatory Commission will continue to firmly promote each reform and innovation of futures market and keep increasing the ability of futures market to serve real economy. These reforms and innovations include the follows: creating conditions to promote the establishment and improvement of the futures market innovation mechanism, stimulating the innovation vitality of market and intermediaries to the greatest extent; promoting the basic construction of market, maintaining market credibility, enhancing the efficiency of market operation; strengthening market supervision and legal system building, improving the mechanisms for early warning against risks, risk monitoring and risk prevention and resolution in markets to ensure that no systemic risk happens to market; improving the qualified investors system on futures market, and advocating the basic idea that “appropriate products should be sold to appropriate investors”.
He also pointed out that a complete system of oils and oilseeds futures varieties has been formed in China after many years of development. From January to October this year, China’s trading volume and value of six varieties of oils and oilseeds futures totaled 390 million contracts and CNY 18.8 trillion, respectively 1.86 times and 1.02 times more than the same period of last year. The total trading volume of oils and oilseeds futures varieties accounts for 33.87% of that of the futures market. And the prices of oils and oilseeds futures are increasingly recognized in actual market, the prices of futures market are closely related to that of actual market, and market structure has been improved. A lot of enterprises in the industrial chain of oils and oilseeds participate in futures transaction to control price risks and stabilize operating income, which have achieved good results.
He also said that DCE and BMD had successfully held six CIOCs jointly and have made CIOC an industry event with great international influence, which provides an important platform of industry communication between oils and oilseeds futures enterprises. He hoped the participating guests will take good advantage of this platform to strengthen communication and cooperation and work together to improve the ability of the oils and oilseeds futures and actual industry, in order to serve the development of national economy.