Research On Risk Management Of Financial Futures

In recent decade, financial and banking businesses have made surprisingly swift progresses and achievements in China. However, rapid development always goes with many uncertain factors. Under the waves of financial innovation, a lot of fresh derivative financial instruments keep appearing, while previous derivative instruments keeps becoming more and more complicated. All these various kinds of derivative instruments often trap the financial markets into confused and agitated conditions and all market participators into great risks, as well as the regulatory authorities into tough difficulties. The old risk management approach appears to be insufficient and ineffective. Confronted with the rushing wave of global financial innovation, it is a must choice for China to go on innovating in financial fields. Thus, how to make effective management control over the risks brought by derivative instruments plays a paramount important role in maintaining the financial system stable and sound. Financial future is the most important and basic derivative instrument. Therefore, in recent stage, how to take advantages of other countries and our own practical experiences to find scientific methods of risk controlling and promote the overall development of financial futures market becomes a more and more urgent issue in the view of handling much more complicated situations which will certainly formed in the near future.This thesis is positioned at analyzing the essences of risks of financial futures from different aspects. As well, it provides scientificquantitative and other qualitative methods of recognizing and managing market risks of financial futures. At first, the thesis introduces the development history of financial futures and its significant influence over financial industry. Then, from the viewpoint of risks subjects and various prosperities of risks, the article provides effective and scientific methods of risk recognizing. Based on accurate risk reorganization, this thesis makes further detailed arguments over the concrete approach and methods of risk management of financial futures market. At last, the thesis analyses the existing problems in risk management of Chinese financial futures market and puts forward a series of countermeasures to perfect the risk controlling system in expectation of contributing something to a rapid and healthy development of financial futures markets in China.