The Research On The Financial Derivatives And The Practice Of Future Market In China

With the fixed exchange rate collapse as Bretton Woods system in May 1972, floating exchange rate took placed, which led to instability of exchange rates, great risks of international trade and investment. Chicago Commodities Trading Exchange (CME) developed the first financial derivatives product -- foreign exchange futures contracts. The impact of the oil crisis rouse the realization of assets of financial instruments. So in February 1982, Kansas Futures Exchange (KCBT) run its first futures product-- Value Line index futures trading. Financial derivative products, as one of the most important contemporary financial innovation in the past 20 years, developed rapidly and triggered the structural change of the entire financial system. The financial derivative market is the an advanced stage of the market economy Development, the important component of modern financial markets, and the most dynamic and most innovative market in the world.In the trend of economic globalization, financial liberalization and capital securitizing, many Asia-Pacific countries and regions, rely on the Stock Exchange, began to gradually liberalize and open up the derivatives market in recent years, to enhance their competitiveness in the international financial markets. The rapid rise of China's capital market, will also benefit from the unconventional development of the financial derivatives market. The emerging market countries competed with developed countries at a comparative disadvantage in the field of traditional financial, but owned a later advantage in the development of financial derivatives market. Through financial derivatives transaction, we could harmonize the reform degree, the speed of development and bearable of the market, effectively prevent systemic risk, and promote the emerging markets mature in the relatively low transition cost.