Future Market In The Perspective Of The Theory Of Surplus Value

At present the risk theory of the future market takes a dominant position in the theories on the future market. The theory believes that the arbitragers transfer the risk, the speculators bear the risk and all the activities on the future market center around the risk. This theory can not to explain the nature of the future market and can not to explain on the history of the world's future market, the organizational structure of the future market, the basic trading form of the future market and the functions of the future market. I hope to employ the theory of surplus value to explain the future market so as to propose suggestions on the steadily development of the future market in china.The framework and structure of the thesis consists of six parts including the introduction, the components of the future market and their relationship, basic trade forms of the future market and the ways of various entities that participate in the distribution of the surplus value, the methods with which the hedgers assign the surplus value, the functions of the future market and the theory and practice to steadily develop the future market in China.The introduction mainly discusses the issues such as the origin of the subject of the thesis, the literature summarization, the significance of the subject, the idea and method of research and the innovations and weaknesses of the thesis.The first part is the components of the future market and their relations. It is discussed in the historical perspective the origin of the world's future market, the stages of the development of the future market and it is believed that the conception that the future market represents a process from the inferior to the superior and from the simple to the complex is "a great fundamental idea, i.e. to believe that the world is not a collection of existing things". It is contended against the theories that hold the future contract as commodity, contract or assets that the nature of the future contract is the unification between the use value and the money capital. The guarantee deposit is the soul of the future contract. It is closely connected to the future contract. The purpose of the establishment of the guarantee deposit system is to ensure the parties of the future trade to perform the contract timely. The guarantee deposit also brings about the leverage effect of the future trade. It is a byproduct of the future guarantee deposit system and the result of the combination of the trading and credit system. It can be found that the most obvious thing is that the future trading market is an innovation of the trading ways. It is the needs of the development of the production force, the result of the development of the production force that in turn contribute to the development of the production force, and the experience summarization of a large amount of practice of the human being. The revolution of the production relationship contributes to the development of the future market. The future market is composed of the future investors, the future exchanges, the future brokerage companies and the future market supervision and regulation departments. The future traders are the core components of the future market. The future exchanges, the future brokerage companies and the future market supervision and regulation departments center around and serve them in operation. With respect to the relations between the hedgers and the speculators, the largest mistake is to believe the arbitragers are a third kind of traders that are different from the hedgers and speculators. The arbitrage is just an integrated and complex form of speculation trade, an advanced stage of speculation trade. The nature of the arbitragers is the same as that of the speculators. So the arbitrageurs still belongs to the speculators. The hedgers and the speculators are in a contradictive unification relation. The contradictive unification between the hedgers and the speculators are the impetus of the development of the future market.The second part is the basic trading forms of the future market and the ways by which various entities participate in the distribution of the surplus value. The basic trading forms of the future market include the arbitrage, the speculation trade, the stock option trade and the stock swap. If the arbitrage trading is taken as the positive proposition, then to sell the arbitrage is positive (Yea) and to buy the arbitrage is negative (No). The struggle between these two confronting elements contained in the negative proposition forms the dialectic movement. To sell and to buy the arbitrage are then convertible between each other. These two mutually contradictory trades form a new combined proposition and also a new trading form, i.e. the fusion between the mutually contradicted forms of to sell and to buy the arbitrage. Their combined proposition, the dual arbitrage is the negation of the negation (a combination). Deducted by analogy, when summarizing all the trading forms, we can find that they all conform to the trinity philosophy of Hegel. As Marx said, "In Greek, this is the positive, negative and combined proposition. And to those readers who cannot understand Hegel's language, we tell them a holly formula: positive, negative and the negation of the negation. All these trading forms follow the principles of the change of quantity and quality, the contradictive unification and the negation of the negation. Only when all the intermediate stages and links are thoroughly and clearly analyzed and studied can the process of the development of the future market be eventually thoroughly and clearly analyzed and studied and the connections and relations between them be eventually thoroughly and clearly analyzed and studied. In this way, we can completely grasp the nature of the dialectic development and the complete process of the self movement and perfection of the future trading form. The arbitrage buyers participate in the distribution of the surplus value through the realization of the surplus value. The arbitrage sellers participate in the distribution of the surplus value through ensuring the production of the surplus value. The speculators participate in the distribution of the surplus value through beating part of the functions of the capital. The future exchanges and the future settlement houses participate in the distribution of the surplus value through collecting the handling charges. The future brokerage companies participate in the distribution of the surplus value through collecting the commission, the system of self operator and market maker. The forms of various entities participating in the distribution of the surplus value explain the inherent relations of contradictive unification between them. Their contradiction is reflected in the competition for the surplus value. Their unification is reflected in the sharing of the created surplus values.The third part is the method of the arbitragers to assign the surplus value. The speculators invest the capital into the future market to make money or obtain profits, which in essence is to achieve surplus value. According to the social rights of the capital, equal capital of the investors must have equal profits. The activities of the speculators on the future market are non-productive labor that cannot generate surplus value. However, they must obtain the surplus value that is in proportion to the amount of their capital. Therefore, the profits of the speculators or the form of the transformation of the surplus value must be assigned by the arbitragers. The method of the arbitrager to assign the surplus value is corresponding to the trading methods of the future market.The fourth part is the function of the future market. We are against the future market risk theory. In the opinion of the author, all activities of the future market are centered on the surplus value. The function of the future market include: arbitrage, price discovery, financing and distribution. To sell the arbitrage is the realization of the surplus value and it can also save the commercial capital. To buy the arbitrage is an important means to maintain the surplus value and it can save the unchanged capital in the trade. The dual arbitrage cannot complete the generation and realization of the surplus value and it can save the commercial and unchanged capitals. The price discovery function proves the future price is the production price. The price in the price discovery function is not the price in the common sense. It is the production price. The formation of the general profit rate (average profit rate) transforms the commercial value into the production price so as to complete the realization of the "social rights of the capital" i.e. equal capital obtains equal profits. The formation of the future price just explains the correctness of the Marxist production price theory. The financing function is an effective means for capital saving and concentration. The financial function can not only realize the saving of the commercial and unchanged capitals, but also concentrate the idle and sparse capital and convert them into function capital. It can also accelerate the speed of circulation and turnover so as to achieve the function of shortening the circulation time. It can almost shorten the circulation time into zero. It can play a great role to the healthy and stable development of the whole national economy. The distribution function is the core function of the future market. The profits of the future market all comes from the part of surplus value that are assigned by the arbitragers. The profits of the future speculators, future exchanges and future settlement houses all come from the part of the surplus value assigned by the arbitragers. It is a special transformation form for the surplus value to transform into profits. It reflects the relations of the capitalists to joint share the surplus value created by the workers. The losses and gains of the future exchanges are only matters of the distribution of surplus value and the wealth and will not cause the loss of the surplus value and assets. The distribution function of the future trading becomes more obvious when traded across borders.The fifth part is the theory and practice of the steady development of the future market in China. The future market possesses the socialist nature under the socialist system and it serves the socialism. The problems of the future market in China on the future investors are mainly the overlook of the fundamental position of the arbitragers on the future market and the shortage of the arbitragers and the problems on its internal structure. The main problems of the future exchanges are of their much smaller powers. The exchanges must be empowered with the authority to market future types. The problems related to the future brokerage companies are how to resolve the present conditions that the future brokerage companies operate in difficulties, control the total number of the future brokerage companies, and allow a batch of brokerage companies with good basic conditions to grow large and strong. The main problems on the future supervision and regulation agencies are how to change the traditional thought to direct the development and construction of the future market with the patterns of the planned economy. The Future Law should be promulgated as quickly as possible to create an excellent external environment for the development of the future market. The problems on the contention for the international commodity pricing rights are in fact the question of how to employ the future market to serve the socialism. The future market in China must serve for socialism. China is the largest consumer country in the world market of many large commodities, such as bean, copper, steel and iron ore. Each year, large procurements are made on the world's market. We must turn the China factors into China power so as to have large rights to speak and decide on the international pricing rights in the world.