On Development Of Stock Index Futures Upon Financial Engineering

ON DEVELOPMENT OF STOCK INDEX FUTURES UPON FINANCIAL ENGINEERINGAbstractIt is the development of the world economy and the finance that pushes financial subject forward, and converts it from describe science into analytical science, and then gradually produces The Financial Engineering. The financial engineering leads engineering thinking into engineering field, uses all kinds of engineering technology to design, develop and practice the new financial product, creatly resolves all kinds of financial problems. Although it appears in the 1990's, it develops very fast. In 1991, the International Association of Financial Engineers found. At the same time some financial institute set up financial engineering department, many universities open the financial engineering doctor degree. In the economic field, the use of financial engineering is too numerous to mention individually. It changes with each passing day.The development of financial tools is more important than others. In recent 20 years, the development of financial derivative security markets becomes the most remarkable and the most importance characteristic. In the background of financial innovation in 1970's and 1980's all kinds of financial derivative security gained more development. In 1990's the demand of financial derivative security was still rise, and the design and innovation of it reach the highest. The development of stock index futures is more rapid. The amount of stock index futures trade rose from $78000 billion in 1991 to $208000 billion in 1998. It has overrun the amount of stock currency markets. It is 22 times than the after one .In the 21 Century, Chinese financial markets will open to foreign investor. It is not to avoid to develop Chinese financial derivative security markets. In several future years, the kinds and amounts of Chinese financial derivative security will rapidly rise. The speed of contract amount rise will overrun the speed of original security amount rise. It will become an important part in Chinese financial markets.On this international financial environment, this article research the financial engineering at first. Beginning with the definition and research scope, we review the development history of financial engineering, analysis the reason of product, describe the basis of theory and the method of analysis, research the relation between the financial engineering and financial efficiency. And then we analysis the necessary of development Chinese financial engineering and the restrict factor, remark the goal of Chinese financial engineering. At second part of this article, we research the financial tools. Beginning with the financial tools box, we describe financial option, forward contract, financial swap. And then we analysis the characteristic and function and trade rule of financial futures. Basing on it, we research the character and the specialfunction in Chinese security market of the stock index futures. So all of the second part have orientated the stock index futures. The third part discuss the development of the stock index futures in China. I research the necessary of opening stock index futures at first. And then we research the feasibility condition and holdback. After designing the trade mode, we give some ideas to develop Chinese stock index futures.This thesis makes the conclusion that in today's international economic environment and the country economic development's demand, we shall rapidly develop financial engineering, research and develop financial derivative security and markets. It is a good ideas to begin with the index futures.