A Research On The Function And Institution Of Fuil Oil Futures Market In Shanghai Futures Exchange

Shanghai Futures Exchange set up the fuel oil futures market in Augustof 2004, and this is the unique oil futures market in our country at the present time.Futures market has two fundamental functions: hedging and price discovery. The second chapter of this paper has an empirical study on the hedging function of fuel oil futures market in Shanghai Futures Exchange, comparing to that of other oil futures market and providing explanation to the compared result. The third chapter has an empirical study on the price discovery function of fuel oil futures market in Shanghai Futures Exchange, and finally finding out the Causality between main oil futures price of the worlds fuel oil futures price of shanghai and the spot price of fuel oil home and abroad. In this paper, the result of the empirical study has some kind of practical value, but the models of the empirical study are more important, they provide a set of rational and exercisable counting methods to the oil related companies.The risk controlling of futures exchange is the core of the risk management of whole futures market. chapter 4 mainly focuses on the construction of futures exchange' s risk-controlling institution, which includes deposit institution,Marking-to-market institutions price change limitation institution and so on. This paper set up a basic model to describe the relation between different institutions. Basing on this model, chapter 4 analyses the detail circumstances of Shanghai fuel oil futures' risk-controlling institution, this may provide some reference value to the decision-making person of futures exchange.