Research On Trading And Risk Control Of SSE 50ETF Option

In the recent three decades,the most remarkable change in the global financial market has been the rise and development of financial derivative market. Incombination with its broad applications,the fast spread of financial derivatives pushed the financial deepening,which brought a climax that profoundly impacted the financial market as a whole.By deepening the liberalization and globalization of financial market,how to accelerate the development of the local financial derivative market, to internationalize its financial system and to strengthen the role of financial deepening to its economic growth become the most imminenttask facing China.The stock options which are typical financial derivative products have already matured for many years in overseas developed countries. Our nation’s securities market has also launched the SSE 50 ETF option in February9,2015. Firstly, we focus on ETF options-related system of rules, including risk control management approach, trading rules, settlement, risk control guidelines and other rules. We also give detail analysis of the risk involved in the various processes from the margin, position limits, large reports, forced liquidation, settlement guarantee fund and other ways. We also combine HKEx option to do comparative analysis of risk management system.Then we do the risk control from the perspective of Greece in specific cases, including Delta neutral, sensitivity analysis, operational risk, liquidity risk, margin risk and so on.