Study On The Risk Control Of MK Futures Brokerage Co

With high-risks for futures market, the futures company, acting as a market intermediary, would be subject to high risks in the operation. Led by the continued improvement of the domestic futures market, futures companies significantly increase their awareness of risk control, on which basis risk control system is initially established. However, the unmet needs exist, considering requirements from the regulatory agency and the status quo of the futures sector as much needs to be done in the existing risk controls systems. This paper studies the existing risk control system in the MK Futures Brokerage Co.The research starts by introducing the development of China’s futures sector and explicating the importance of risk control for futures companies in the current market environment. Briefing the risk control system practiced by those outstanding foreign futures company draws on the experiences for domestic counterparts. Secondly, theories concerning the risk identification, risk assessment and risk control are employed to investigate MK Futures Company in terms of the potential risks. The research analyzes the existing risk control system by identifying the main issues while looking into the causes.Based on the risk control theory, comparative analysis and combination of qualitative and quantitative analysis are adopted to conduct overall optimal design for MK in areas of corporate governance, organizational structure, the main business processes and system development, to develop the appropriate risk control measures to improve the existing system. The research synthesizes the risk control theories, methodology and the issues facing the research objects. The investigation leads to the preliminary conclusion that can be referred to when it comes to the risk control system for those domestic counterparts.