Study Of Manipulation In Futures Markets

The purpose of this research is to summarize the experience in dealing with manipu-lation in futures markets, and to promote development of futures markets in China.The method of qualitative analysis together with quantitative analysis and themethod of comparative analysis were used in the research. Based on a brief review of thehistory of manipulation in futures markets, this report summarizes the experience in in-dentifying manipulation in futures markets. After analyzing characteristics of futuresmarkets in China and some alleged manipulation cases, this thesis tries to detct manipula-tion in futures markets using econometrics method. At last, this report analyzes experi-ence and lessons in coping with manipulation and gives some relevant advice.Conclutions presented in this report can be summarized as follows:Manipulation is neither a new thing nor a peculiar phenomenon in futures marketsin China. It is common to all futures markets, especially in the early days of futuresmarkets development process.Along with the development of futures markets and improvement in the level ofregulation, amount and influence of manipulation in futures markets are decrease.China should do its best to deal with manipulation to maintain delelopment of its fu-tures markets.Futures markets in China are far more away from efficient markets. The empiricalresult showed that there was manipulation in futures markets in China.There are two categories of measures-preventative measures and deterrent meas-ures-to cope with manipulation. At present, China should not emphasize one of thosemeasures, but both of them. As disclosure of information is needed by both of thosemeasures, enhancement in the disclosure of information and improvement in transpar-ency are critical for China to doing with manipulation in futures market.