A Comparative Study Of Chinese And British Copper Futures Markets

Since the launch of copper futures contracts in China,the futures market has been developing strongly,especially in recent years,the copper futures market in China has been developing very quickly.The price of copper futures on the Shanghai Futures Exchange of China has been recognized by the world copper futures pricing center.The influence of Chinese copper futures market is increasing year by year.The British futures market is the earliest futures market in the world,which provides a good trading platform.The copper futures is the most normal traded specification in futures markets,and one of the most vitality of the futures varieties.It has a very important impact on the development of copper futures market in the world.Compared to a speculative copper futures in New York,the price of the British copper futures market is more normative and instructive.Although the influence of the Chinese copper futures market is on the rise,its copper futures market is a late starter and immature in many aspects.Comparatively speaking,the development of British copper futures market is relatively more mature,which can provide experience and reference for the development of the Chinese copper futures market.Therefore,this thesis focuses on the comparison between Chinese and British copper futures markets,trying to find out the differences between Chinese and British copper futures markets and the reasons for the differences,and then puts forward corresponding suggestions for the development of Chinese copper futures market.This thesis studies the Chinese-British copper futures market from several aspects.Firstly,the thesis introduces the theory of futures market and the theory of price volatility,which provides the basis for the research.Secondly,this thesis analyzes and compares the Chinese and British copper futures market systems,and summarizes the differences existing in the Chinese and British copper futures market systems.At the same time,the price volatility of Chinese-British copper futures market is compared and analyzed.The results show that there are differences in the price volatility of Chinese-British copper futures market.This is mainly reflected in that although Chinese-British copper futures markets have the characteristics of sharp peak and thick tail,the volatility risk of the British copper futures market is greater than that of the Chinese copper futures market.Both Chinese and British copper futures markets have volatility aggregation,but the maximum volatility of the British copper futures market is largerthan the maximum volatility of the Chinese copper futures market.The leverage effect of the Chinese-British copper futures market is obvious,but the leverage effect of the British copper futures market is stronger.Finally,the reasons for the differences in price volatility of Chinese-British copper futures market are analyzed.The main reasons are the differences in regulatory system,futures contract,trading margin and risk control system.Based on the analysis of the reasons,this thesis puts forward some suggestions for the development of China's copper futures market,including deregulating the supervision system,enhancing the flexibility of futures contracts,establishing the dynamic margin system and optimizing the risk control system.