China Financial Futures Exchange

Introduction

China Financial Futures Exchange, or CFFEX, is an open, international, and diversified exchange for financial futures products in China. It focuses on the development and trading of international financial products in the China market. Futures trading has become an important tools for hedging risky market activities in the era of global economic integration. CFFEX provides market participants a place to trade, a vehicle to hedge risk, and an improved method to manage portfolio trade-offs. In recent years, CFFEX has seen rapid growth and has become a leader among global exchanges in terms of the number of contracts traded, economic value of contracts, and the size and scope of its trading services.

History

CFFEX was established in 2006, under the approval of the China Securities Regulatory Commission. In 2010, CFFEX launched trading in four products—financial futures on the CSI 300 Index, the Shanghai Composite Index, interest rate futures, and treasury futures. Since then, CFFEX has developed a varied range of financial products, including stock index futures, stock index options, interest rate futures, currency futures and options contracts, as well as short-term and mid-term treasury futures. As of June 30, 2017, CFFEX had over 4 million contracts outstanding across its various products.

Services and Products

CFFEX provides a wide range of financial derivatives and services to meet the needs of its customers. These include stock index futures and options, interest rate futures and options, currency futures, mid-term and short-term treasury futures, and other customized products and services. CFFEX offers a number of resources and tools for traders, such as a real-time market data ticker and customizable charting tools. It also provides a wide range of educational materials, news updates and analysis.

Trading Platforms

CFFEX employs two distinct trading platforms for its derivatives. The primary platform is a proprietary platform called the China Financial Futures Trading System, or CFTS. CFTS is a powerful, comprehensive platform with a full suite of trading tools, including order management, short-selling, and advanced research functions. The secondary platform is the China Mercantile Futures Modern Trading System, or CMFTS, which provides quick, easy-to-use trading functions.

Clearing and Settlement

CFFEX handles the clearing and settlement of its derivatives through the China Financial Futures Clearing Co., Ltd (CFFC), the designated central counterparty of CFFEX. CFFC provides a clearinghouse that streamlines the settlement process. CFFC guarantees the performance of derivative trades and functions as a risk-manager, eliminating the need for counterparties to directly interact with each other.

Conclusion

CFFEX is a successful and rapidly growing exchange for financial futures products in China. It offers a wide range of products, tools and services to meet the needs of its customers. Moreover, its powerful trading platforms, robust clearing and settlement process, and oversight from the China Securities Regulatory Commission, make it a desirable place to trade.

China Financial Futures Exchange (CFFEX) was established on October 25th, 2006 and is approved by China Securities Regulatory Commission. It is based in the country’s financial hub, Shanghai.

CFFEX is a marketplace with a wide range of financial futures instruments, including fixed-income securities, stock index futures and commodities. Through its multiple platforms, including the Stock Connect and FinLink solutions, CFFEX offers a secure, fair and transparent way to trade futures.

In order to participate in the CFFEX marketplace, all participants must have a registered trading account and pass the application process. CFFEX provides its members with various services such as electronic trading and clearing platforms, risk management, training and certification, as well as market surveillance.

CFFEX allows traders to conduct their business with complete confidence, by stressing its commitment to open, fair and orderly market principles. Its commitment to due diligence is also reflected in its strict risk management system, which helps protect the participants from any type of market manipulation.

All transactions on the exchange are carried out in compliance with the regulations of the State Council as well as the China Securities Regulatory Commission. CFFEX is actively involved in the nation’s financial markets, trading a range of futures markets, including fixed-income, equity and index futures.

CFFEX has seen tremendous success since its establishment, becoming one of China’s most active trading centers, providing investors with access to a wide range of markets. With its innovative products and services, CFFEX aims to play a key role in the development of China’s financial markets and will continue to support long-term wealth accumulation.