A futures company refers to an intermediary organization established according to law, which accepts the entrustment of customers, conducts futures trading for customers in its own name according to their instructions, and collects trading fees, and the trading results are borne by customers.
Futures companies are the bridge between traders and futures exchanges. Futures traders are the main body of the futures market, and it is precisely because futures traders have the demand for hedging or speculative profits that they promote the emergence and development of the futures market. Although every trader wants to trade directly in the futures market,
However, due to the high risk of futures trading, it is decided that the futures exchange must formulate a strict member trading system, and non-members are not allowed to enter the market for trading. Therefore, there is a contradiction between strict member trading system and attracting more traders and expanding the market scale. According to the relevant regulations of the State Council, China implements a licensing system for futures brokerage companies.
Company function
Acting as an agent to buy and sell futures contracts and handle settlement and delivery procedures according to customer instructions; Manage customer accounts and control customer transaction risks; Provide customers with futures market information, conduct futures trading consultation and act as trading consultant for customers.
The Regulations on the Management of Futures Trading promulgated on March 16, 2007 has made new adjustments to the positioning and business scope of futures companies. The word brokerage in the name of the futures brokerage company will be deleted and changed to "futures company".
Futures companies are mainly engaged in domestic commodity futures brokerage business, but since the stock index futures were officially listed and traded in CICC in April 20 10, 20 16, the financial stock index futures brokerage business of futures companies will usher in explosive growth in the future.
By the end of 20 10 and 1, there were 167 futures companies officially operating. In the future, with the development of the futures industry, there will be more and more mergers and acquisitions, and futures companies will face a reshuffle, when there will be fewer and fewer futures companies.
Futures brokerage company is the link between customers and exchanges, and customers can only participate in futures trading through futures brokerage companies. Because futures brokerage companies trade on behalf of customers and collect deposits from customers, futures brokerage companies also have the responsibility to keep customers' funds. In order to protect the interests of investors and increase the ability of futures brokerage companies to resist risks, the futures regulatory departments of various governments and futures exchanges have formulated corresponding rules to restrict and regulate the behavior of futures brokerage companies. In China, the provisions on the behavior of futures brokerage companies mainly include the following contents:
1, faithfully and accurately execute customer trading instructions; Do not misappropriate customer funds.
2. Keep business secrets for customers; Do not create or disseminate false information to mislead information.
3. Do not accept discretionary transactions from customers; Do not promise to share interests and risks with customers.
4. Prohibit proprietary futures trading business; We must strictly distinguish between our own funds and customer funds.
5. Do not hedge the transactions entrusted by customers outside the exchange.