Study On The Operation Model Of Chinese Stock Index Futures

The Stock Index Futures is a kind of the financial futures. According to the Theory of Modern Portofolio, the stock market's risk can be dividedinto two categories: Systematic Risk and Unsystematic Risk. Through thedispersing investment, that is, buying many kinds of stocks, the investorscan avoid the Unsystematic Risk better, but can avoid the Systematic Riskonly through trading on the Stock Index Futures. The Stock Index Futurescontract's subject matter is Stock Index, Which can almost represent thechange tendency and amplitude of stock price in the whole stock market.The article includes four parts. The first part analyzes the Stock IndexFutures. The second part introduces the origin and development of theStock Index Futures in the world, and analyzes the necessity and feasibilityof developing Chinese Stock Index Futures. The third part studies theOperation Model of Chinese Stock Index Futures. The fourth part analyzesthe risk of the Stock Index Futures and the governmental supervise to it.The first part introduces the differences and relatives of Forwardcontract and Futures contract, Commodity Futures and Financial Futures,Financial Derivatives Instrument and Stock Index Futures in order toanalyze what Stock Index Futures is. It is a kind of Financial Futures,which subject matter is Stock Index. Stock Index Futures has the functionof avoiding the price risk and finding out the price, so that it can be a goodinstrument of the investor to decrease loss and give the governmentadequate information to control the economy.The sccond part introduces the origin and development of thc Stocklndex Futules in the world, and analyzes the necessity and Ibasibility ofdevelopil1g Chinese Stock lndex Futures, such as stabilizing the stockmarket, internationalizing our stock market, plnviding the conditions fordeveloping tl1e StOck Index Futures, etc.The third pa1t studies the Operation Model of C11il1ese Stock lndexFutures. Firstly it analyzes the designation of StOck Index FLltules contractin the terms of the Futules Excha11ge, Underlying Index, Contracted Value,Millimum FlLlctuation, the limit of up and down, Trading Hours, SettlementMonth, the Last Trading Day Final Settlement Day Settlement Method andMargin. Secondly it discusses the StOck Index Futules' trading methods,whicIl include hedging, speculating and spreading. Finally it analyzes theoperation mechanism of Stock lndex Futures, which co11sists of the tradinglnechanism, the settling-pertbrming mechanism and the risk-governingmechanism.The fourth palt describes the five kinds of risk in the trade of tl1e StockIndex Futules, that is, Maltet Risk, Liquidity Risk, Cledit Risk, Legal Riskand Operation Risk, and furtherly analyzes the supervise of govemment toit.