A Research On The Risk Prevention Of Futures Delivery Warehouse Default

Futures market has two functions including price discovery and risk hedging.Futures delivery is an important bridge connecting the spot and futures market,and is important for the functioning of price discovery and risk hedging.As an important vehicle for futures delivery,futures delivery warehouses are key to improve the functioning of futures market.In recent years,China's economy is stepping into a new norm,the growth rate is slightly declining while improvement on economic structure is upgrading,the goal of macroeconomic control is also transitioning from the initial “growth guarantee” to “growth stabilization and structural adjustment”.As being affected by the macroeconomic dynamics,some futures delivery warehouses now face slowing down of business development and difficulties in production operation,financial profits is slipping and default risk is gradually increasing.Since 2008,breaches of futures delivery warehouse such as selling spot and futures delivery goods without authorization have been recurring,which affects the credibility of futures industry as well as the functioning of futures market.With the above background,it is propelling and important to strengthen risk management on delivery warehouses,and analyze reasons and lessons of risk events.This essay starts from the status quo of current regulation and supervision of delivery warehouses,profiles scientifically the risks associated with warehouse defaults,and historic warehouse risk events;researches on the internal control and exchange supervision of warehouses that are related to risk factors;and then proposes to establish a bulletin platform for warehouse registration,and set up rating system for warehouses,to mitigate default risks of delivery warehouses;proposes a series of solutions which suggest to firmly control large product delivery,introducing web of things monitoring technology,set up group futures delivery warehouses,let members to participate in warehouse surveillance etc.;lastly,to specifically solve the ambiguity of regulation on futures deliver warehouse receipt and central counter party,proposes suggestions on the control of warehouse default risk from a legal point of view.