The Research On Futures Company Financial Derivatives Business Innovation And Risk Management

In1848, Modern futures market was born in Chicago.After morethan100years of development, the overseas futures and derivativesmarketshave experienced four stages which included traditionalcommodity futures, financialfutures, electronic and network,large-scalemergers and acquisitions for IPO, the increasingly mature market systemhas made a major contribution to economic development.The derivatives market in China was founded in the early1990`s, afteryears of development, it now has40futures varieties, and the interest ratefutures and stock index futures have been listed, besides, varieties systemis increasingly perfect. Futures company’s business scope also graduallyincreased, in addition to the futures brokerage business, somehigh-quality futures companieshave already carried out futuresinvestment advisory, asset management business, besides, they could setup a subsidiary in Hong Kong which is engaged in foreign business andthey also could set up a subsidiary in the mainland to do business in riskmanagement. Later, besides to the futures, options, swaps and other financialderivatives which arealso in design, and OTC market is also in building.While, futures companies, as the main role of futures and derivativesmarket, how to promote derivatives business innovationunder thebackground ofmarket variety innovation andpersistentlyincrementalsystem innovation, become the key competitionbetween the futures company.On the one hand, futures companies need to change the originalbusiness system which is mainly relied on brokerage business, andgradually turn to modern financial enterprises, with asset management,risk management, a number of overseas business, they should integrateeffective resources, give full use to the internal coordination effect, so asto promote the development of the company.On the other hand, along with the increase in financial derivatives, futurescompanies either to carry out the asset management business or riskmanagement business, they all need to provide investors withdifferentiated products. Therefore, product design ability infuturescompany will become one of the core competitive ability.At the same time, the futures companieswho are developing derivativesbusiness innovation need to fully focus on business innovation riskmanagement. Innovation is the driving force for the futures companydevelopment, and the internal risk management ability is the lifeline of the development of the futures company.