The Study On The Liquidity Of China's Future Market

The liquidity is one of the important characteristics that shows the financial market circulates normally. A financial market will lose its existent possibility if it lacks liquidity. The future market, as one of the important constitute parts of financial market, whether it can exert the basic function effectively and promote the economic development, depends on whether it has the favorable liquidity. There are many scholars carried on the research on the financial market, especially the stock market liquidity interiorly, but to the research on the future market liquidity there still few. This article carries on the empirical exploration on future market liquidity of China after consulting and tallying up the research result of market liquidity by domestic and international scholars, selects copper, soybean and wheat as the bargain data, which are the most three active futures species in the futures market trade of our country, computes respectively the market width and market depth of these three species contracts, uses these two liquidity index to validate the monthly effect and settlement effect of future market liquidity, and establishes the regression model according to the two liquidity index to research the influence factors of futures market liquidity. Results are as follows: (1) All three futures species have remarkable monthly effect and settlement effect, but the characteristic of each species is different. (2) Both open interest and trade volume have remarkable just influence to the market liquidity. (3) Some correlative measures carried by authorities in order to control risk will lower the market liquidity and some measures will improve the market liquidity. Finally, according to the research conclusion, this article considers that the authorities should adopt various methods to increase the market liquidity in order to promote the healthy development of the future market.