Constructing A Multi-level Futures Market System In China

As an important part of the capital market,the futures market based on the spot market is a modern market form which is characterized by highly developed standardization and organization.And the multi-level futures market consisting of three basic markets—the floor market(Exchange market),the OTC derivative market,and the spot market--is more perfect than the futures market.According to the running of the three basic markets,China's futures market system has been basically formed,but there are still three problems--the small quantity of listed varieties,the inactive transaction,and a certain amount of Zombie Breeds--existing in the futures market.It's difficult for the current listing examination and approval system to adapt to the modern capital market development.Besides,the futures varieties can't be delisted,and some futures varieties can't rise or fall reasonably in the multi-level futures market owing to the transfer plate system.Based on the futures varieties listing,delisting,and board-transferring system,as well as the multi-level futures market,this paper thoroughly analyzes the current development and problems of China's futures market with relative data by comprehensively using the methods of logic analysis,competitive and systemic analysis,and combination of theory and practice.Drawing on the beneficial experience of American development of multi-level futures market,basic ideas are proposed as follows: each level market should be advanced to develop cooperatively;the futures varieties listing,delisting,and board-transferring system should be constructed to improve the liquidity of the futures varieties;the supervision system of the Trinity should be more perfected,and the industry and exchange self-regulaion management should be strengthened.The conclusion drawn by analyzing the theory,the data,the relevant practice,and the advanced experience consists of five parts: 1.Abundant experience has been accumulated and good results have been achieved through more than 20 years 'development.However,gaps between China and the developed countries,such as the small quantity of listed varieties,the inactive transaction,lack of the delisting system,and small scale of the OTC derivatives market,still exist.While constructing the multi-level futures market can contribute to filling in the gaps;2.It's the key to build the multi-level futures market that the floor market,the OTC derivative market,and the spot market should be developed cooperatively to form a complete market system;3.The floor market,the OTC derivative market,and the spot market are the basiccomponents of the multi-level futures market,namely the carriers for the spot futures varieties.So improving each level market will bring the improvement of the whole market system.Thus relative suggestions for improving each level market are raised to help construct the multi-level futures market;4.Futures varieties listing,delisting,and board-transferring system accorded with the marketization plays an important role on connecting each level market to construct the multi-level futures market system;5.Perfecting the legislation of the futures market and the multi-level supervision system of the Trinity is the fundamental guarantee for the construction of a multi-level futures market system.Laws and regulations are needed as a means of guaranteeing the healthy development of the market,so legislation perfection and supervision strengthening is the inherent requirement of multi-level futures market.