The Research On Operation Risk And Control Measurement Of Chinese Futures Companies

The gold futures contract was listed on the Shanghai Futures Exchange in January 2008, and China's Financial Futures Exchange will soon launch China Securities Index 300' futures. The size and sorts of China's futures market are ever increasing. As one of the main entities of the futures markets, futures companies will play a more important role, at the same time, face and assume more risk factors of the market. So it is extremely critical to strength the risk control of futures companies.Although there are some researches on risk control over futures companies in current academic field, but most of the literatures are on the basis of past risk situation. The literature with risk control for current futures company's condition is not much. In this regard, the paper is mainly focused on the study for operation risk in current futures companies.Firstly this paper reviewed the development process of China's futures industry and futures companies. Secondly this paper explained the reasons of rising risk in China's futures companies, in-depth analysis of various risk that China's futures companies are facing as well. It was pointed out the external risks in futures companies included policy risk and market risk, the internal risks included credit risk, liquidity risk, operation risk (market development, account opening, transaction, accounting, delivery etc.), technical system risks etc. On this basis, this paper puts forward systematic and scientific risk control strategies regarding all aspects in the whole business process. This paper will provide theoretical and practical basis for improvement in our futures companies' operation risk control mechanisms.