The Legal Control Of Risk In The Stock Index Futures Trading

As a financial innovation, stock index futures is a double-edged sword which might either benefit the capital market a lot or bring great risk to the whole economy .China's stock index futures market is about to set up. Simultaneously, how to control risk is a question of practical significance. The risk control of the stock index futures involves financial instruments, management tools, technology and legal means. From the legal point of view, this paper research on the risk control of index futures and related questions , put forward a sound proposal based on the analysis of the actual conditions in China.This article has three parts, which includes the introduction, the main text and the conclusion.The introduction briefly describes the history and development of the stock index futures, and the process of China's stock index futures market. On this basis,it leads to the background and research purposes, and makes a previous presentation of the main text.The main text has five chapters. First of all, present the questions, and then separately research on the questions from there angles: subject, product, rules of trading conduct. Finally consider the main issues combined with our conditions and make recommendations.Chapter I: The basic theory of risk control. First of all, this part makes a definition of stock index futures, and recognizes the characteristics and function by comparing with other products. Then introduce the sources of risk, and put the risk into three categories: the risk of the subjects, the risk of the products, and the risk of transaction process. At last, combined with Chinese practical experience, this paper makes the focus of the legal control.Chapter II: The legal control of subject risk. Because of the great risk, market participants should not only have the trading capacity, but also the ability of risk control. This part discusses the eligibility restrictions of investors and intermediaries to enter the market.Chapter III: The legal control of product risk. Stock index futures market has no so-called primary market, but in the course of putting the product on the market, the approval system is set to contain the liquidity risk. And the legal protection of information of stock price index is an important question about legal risk. In addition, the location of the market is a question about risk control.Chapter IV: Risk control system in the stock index future trading. Risk control system is set to manage the risk of the transaction. Comparing risk control system in china and overseas, this part study the function of the system.Chapter V: Problems and recommendations. Our country is about to launch stock index futures, and have made a large number of legislative preparation. But to improve the legal environment is not a moment's work, it needs continuous improvement. This part research on the questions of Chinese market, and give recommendations.The conclusion part summarizes this article's central topic and gets four conclusions.