Legal Control On Stock Index Futures Trading Venture

Stock Index Futures as a financial derivative has performed successfully in many countries and regions of the world. In China it has been four years since Shanghai Stock Exchange start to develop Stock Index Futures market on December, 2004. At present the preparations for the related technology and systems of domestic Stock Index Futures has matured.The introduction of Stock Index Futures will change the appearance of the domestic financial market to a large extent. This will occur especially in introduction of the short selling mechanism. It will change the existing thinking mode of the China financial market. Either leverage effect caused by guarantee mechanism of the Stock Index Futures trading or a short term capital pressure of investors resulting from the daily balance system, even the sensitivity of futures prior to spot transactions are all problems with which both the managers and general investors need to consider.This thesis attempts to analyze the venture and control mechanism of Stock Index Futures from an angle of the legal framework. Since China Stock Index Futures has not yet been practiced, this thesis will mainly discuss in canonical analysis combining the operational status of Stock Index Futures in other regions and put forward some legal suggestions.This thesis consists of three parts: the preface, text and epilogue. The text is divided into four sections.Chapter one mainly deals with the conception, characteristics and classification of Stock Index Futures as well as the necessity of building the frame for Legal Control on the Stock Index Futures trading venture. In the thesis the Legal Control on Stock Index Futures has a broad concept which includes both the structure of legal control and the system for institution and rule.Chapter two deals with the Legal Control on Stock Index Futures trading venture in the United States and Singapore. As one of the most experienced countries having a futures market, the United States is a very good example of both the supervision mode and conception. However it is more worthwhile for the Chinese to learn from Singapore. The country has a booming representative in the Stock Index Futures market with long term advantages.Chapter three discusses the analyzing Legal Control on Stock Index Futures trading venture of China. In China the structure of Stock Index Futures trading venture is divided into three levels. There is the China Securities Regulatory Commission (CSRC), China Financial Futures Exchange(CFFE) and China Futures Association (CFA) and the futures company as well as other dealers. The forgoing three structures consist of Regulation on the futures and other regulations, formulas, detailed rules and inner controlling regulations. In the field of system there are four methods for venture control in accordance with regulations by China Financial Futures Exchange from the view of Stock Index Futures trading. They are the accounting system, price limit system, position management system and venture notice system.Chapter four is mainly about advice on improvement of Legal Control on Stock Index Futures trading venture which includes legislative improvements, backup regulations and investor protection systems and distinguishing the respective position of three hierarchical structures as well as law application improvements and transformation of supervision measures and more.