Stock Index Futures, The Risk Control System: The Path Of Evolution, International Experience And Practice In China

In Sept. 2006, China Financial Futures Exchange was officially established in Shanghai, which means China owns its first financial derivatives exchange. This important step made by China shows China will start to upgrade its traditional financial system to modern financial system. Several years ago, stock index futures was already a hot word in China's capital market, for this new-born product, a lot of debate has been launched, both negative and positive opinions were delivered. The common point is that index futures is a double-edged sword which might either benefit the capital market a lot or bring great risk to the whole economy.The main point of this dissertation is that stock index futures is a high-risk instrument and we should understand this product comprehensively. We need learn the lessons from outside market, and conduct an effective risk management system which applies to the conditions in China.This dissertation has introduced the definition and characters of stock index futures. After that, it has analyzed the risk of stock index futures market through citing a lot of related literatures. Then, with comparing all the major risk management system in the world, it cleared up the development of the risk management system in the world. Finally, it studied and explained the risk management system adopted by China and submitted some useful advice.