How far has the American futures industry developed?

As an advanced organizational form of the market economy system, the futures market has been fully developed in the United States. From variety innovation and system innovation to market supervision and risk management, the American futures market system has reached a mature level. Its successful operation has become a model that all countries in the world pay attention to and follow in developing modern market economy. Leo Melamed, the father of American financial futures, said: "Predicting the future has always been a risky profession. Good news is always welcome, but if it doesn't come true or just backfires, it will be denounced. Since the emergence of futures and options, they have always been considered mysterious, often attacked maliciously, and often become scapegoats for some unpleasant economic phenomena. " /kloc-At the beginning of the 9th century, modern futures trading in the United States originated in the border areas of the Midwest. The commercial development of Chicago and the rich agricultural products such as wheat in the fertile plains of the central and western regions have contributed to the formation and development of the modern futures market. At that time, there was no legislation to regulate it, and the futures market in the United States was in a state of excessive speculation and disorder. Especially after the American Civil War, due to deflation, the prices of commodities, especially agricultural products, have been depressed for a long time, and the economic rights and interests of farmers have been greatly damaged. Therefore, standardized laws and regulations and strict market supervision system urgently need to be realized in the futures market to maintain normal market order. This kind of exploration and effort is still going on after 100 years. 1974, the U.S congress revised the laws and regulations on futures trading and promulgated the Commodity Futures Trading Commission Act, which declared that the management system of futures trading in the United States was formally composed of a three-level management system combining the supervision of the federal government (CFTC), the self-discipline of trade associations (NFA) and the self-management of exchanges. Insider trading and market manipulation have been effectively controlled, open, fair and transparent trading venues have gradually become a reality, and the interests of investors have been effectively protected. Looking at the supervision system of American futures market, its main characteristics are standardized system, clear division of labor and strict management. The three-tier regulatory framework complements each other, which plays a role in predicting risks, solving loopholes and punishing violations, maintaining market stability and defining responsibilities. CFTC is the highest management and supervision institution of the American futures market, and has the right to take the overall situation and exercise jurisdiction over all futures trading activities. For example, according to the reports of futures industry associations and exchanges, it prohibits all kinds of fraud in activities; Announce all kinds of futures trading information to the public to ensure information disclosure. In order to maintain the stability and order of the trading market and the fairness, justice and openness of trading activities, CFTC has taken some measures: First, it has maintained comprehensive contact with futures trading institutions such as futures exchanges, dealers and clearing banks to understand futures trading information, especially the large positions in the futures market, so as to ensure information transparency, prevent large manipulation and guard against risks. The second is to take control actions against emergency risks, such as raising margin and compulsory liquidation. These two measures are commonly used and effective, but the means of compulsory liquidation is rarely used, because once taken improperly, it will bring considerable delivery risk and cause market confusion. It is more common to adjust margins. However, before the adjustment, we should first use the "standard portfolio risk analysis system", that is, the SPAN system, to evaluate the risk degree of the market, so as to calculate the corresponding margin level, which is conducive to improving the utilization rate of capital. NFA is the National Futures Association of the United States, and it is an industry self-regulatory organization composed of people in the futures industry. Its main function is to ensure that customers get fair treatment and maintain market order. Customers here refer to all futures companies and brokers engaged in futures trading in the United States. According to the special legislation of the United States Congress, all futures companies and brokers engaged in futures trading in the United States must join the National Futures Association. In order to ensure that customers get fair treatment, NFA implements effective supervision throughout the industry. The first is to monitor the trading behavior in the market, mainly through trained staff, and at the same time audit the data reported by the exchange and make necessary inquiries. Once market irregularities such as false declaration, transfer of transaction records and exchange records are found, the relevant results shall be reported to the relevant committees of the exchange. Secondly, check and supervise the financial status of futures companies and brokers to ensure that their operating funds remain above the prescribed level. Once it is found that it fails to meet the prescribed level, futures companies and brokers will be severely punished by fines and suspension of business. At the same time, the National Futures Association has established an arbitration system to handle various disputes between customers and members or between members. Members must obey the ruling of the National Futures Association. The futures exchange in the United States is a trading place and a self-regulatory organization for futures trading. Its supervisory functions are as follows: first, supervise the members and their behaviors in the exchange. To examine the membership, we should examine the applicant's credit status, scope of economic responsibility, personality and integrity. Once the membership is approved, the behavior of members will be strictly monitored and the trading behavior of members will conform to the regulations. Secondly, the exchange strictly supervises and manages floor traders or brokers. On the one hand, this kind of supervision requires floor traders to have good business ability and professional ethics, on the other hand, it does not allow floor traders to engage in illegal transactions, such as not allowing traders to privately agree on sales contracts. In order to maintain a good market order, ensure the open, fair and transparent operation of the market, so as to attract more investors to participate and increase the liquidity of the market, transactions need to try their best to find potential risks in the market and nip them in the bud. By analyzing and studying the three-tier system of American futures market supervision, we can get two inspirations: First, the core content is pre-emptive prevention and dynamic monitoring of risk accidents. The futures market is full of traps and flowers, which is daunting and fascinating. Futures trading is risky, but the risk is still controllable. Uncertainties such as the stability of trading rules, the technicality of computers, the rationality of trading procedures, and the fairness of the exchange's implementation of management policies can be overcome by pre-emptive prevention and dynamic monitoring. The market supervision system in the United States, from the futures exchange to the National Trade Association to the Commodity Futures Trading Commission, is fair, just and open, which effectively maintains the stability of the market. Secondly, exchanges and trade associations play a vital role. The exchange is the grass-roots organization of futures trading and the most direct source of feedback information, while the futures industry association is in the position of "uploading and releasing", contacting the government and the exchange. They are the basis of supervision at the national level. Only by supervising the futures market at the national level can we ensure the order of the whole market, thus ensuring the stability of the entire national capital market and the normal operation of the market economy system. The standardized futures market supervision system in the United States has played an important role in perfecting the futures market supervision system in China and establishing a new supervision model suitable for China's national conditions. The history of the establishment and development of China's futures market is only 10 years, which is short in time, small in scale, lacking suitable legal and regulatory environment, and the prediction of market risks and the prevention of market violations are not strict enough, which seriously affects the market development. Therefore, it is necessary to learn from the American market supervision system, improve the supervision system, establish a three-level supervision model of futures exchange, industry association and government, and coordinate the relationship among them, gradually move closer to the market management model and improve the market economic system.