Futures Manipulation And Its Control

Ⅰ.The purpose and significance of this thesisIt has been more than 150 years since the origin of the modern futures market. During the history of more than a hundred years, the futures market has developed from the out-of-order to the order, from the simple market, as only included commodity futures, to the complex market, as includes finance futures. For it's qualities, which could elude risks of market and pre-search price in market, the modern futures market has been a necessary element of system of the modern economic. For our country, initiation and development of futures market of ourselves is a necessary choice of market institution in the period of transforming from planned economy to market economy. Since the market is full of various kinds of uncertainties which may cause the subjects of market to face with the mass of risks, there are objectively expectations for market tool - futures market to elude risks.It was fine hope of our government at the time of initiating futures market, to establish perfect institution of futures market. However, for failures in understanding and creating institutions of futures market, a series of serious manipulation incidents of futures market sequentially happened after its initiation.After having neatened futures market of china between 1993 and 1998, the order of that has greatly improved. Although now, the level of market custody had prominently improved, the number of incidents of manipulating futures market having reduced greatly. Now our futures market is facing an opportunity to develop. However, we has adequate reasons to deeply researching into futures manipulation , for which still happens in even developed futures market. So, the subject of the thesis has not only theoretical significance but also realistic significance. Ⅱ. The manner of researching applied in the thesisFor greatness of destroying resulted by market manipulation, lots of experts researching it from different points of view, Such as, manipulation according to information asymmetry and traders' irrational behaviors, etc. Based on these experts' researches I analyze manipulation incidents happened home and oversees .The research logic of this paper is from generality to specialty and from theoretical principle to real practice. Ⅲ .The main content of the thesis.There are four chapters in the text.I mainly analyze the connotation and extension of futures manipulation in the first chapter and there are three sections in the chapter. In the first section, I theoretically discussed the recognition of futures manipulation through referring to views of different researchers; In the second section, I discussed the recognition of futures manipulation from law view through analyzing it defined by laws of different countries; In the third section, I conclude different kinds of manipulation happened in reality.The second chapter analyzes the reasons why futures manipulation exists based on futures market's own characters. This chapter consists two parts. The first part analyzes the relations between futures' characters of high liquidity and anonymity and futures manipulation. Part two discusses the relation between delivery mechanism and futures manipulation. In this part I first analyze the necessity of delivery in futures market. Secondly, I discuss the probabilities of manipulation because of the existence of delivery mechanism in futures. Finally, I analyze that the probability of successful manipulation enhanced because of the economical frictional costs in delivery process.Chapter three mainly analyzes measures to control and reduce manipulation. These measures are the response to those causes mentioned in chapter two. In this chapter, I firstly discuss the great effect of custody system. secondly, at an angle of futures exchange, I discuss some measures which can restrain manipulation, such as the applying of cash settlement and the reporting system of larger trader, etc. Finally, I introduce an case(the manipulation of silver happened during year 1979～19...