Based On International Experience Of China's Stock Index Futures, Risk Management Study

The Stock Index futures based on stock index is one of subject matter of financial products. And it bore in Kansas City Commodity Exchange in 1982. The United States, Japan, Hong Kong and the other countries have launched stock index futures in the next few years. As an important hedging tool for the spot market, stock index futures'build based on a highly developed financial market, by 20 years development, stock index futures has become one of the most dazzling derivatives in financial markets. China's stock index futures development experienced a long preparation, since 1993, the launch of Hainan Stock Exchange product the A Share Index and the Shenzhen Composite Index underlying stock index futures, then established China Financial Futures Exchange in 2006, and after the experience of financial crisis in 2008,we have final launched it in 2010. Index future's feature of complex and high risk requires not only sound settings, but also the risk management which implement in every trading detail. Stock index future's risk is not only the risk of formal financial futures but also the risk of itself, as different market Ricks, trading risk and monitoring risk. There is a short period since Our stock index future's market had built up,one the other hand, the special characteristics of our country's stock market bring specific risks to the stock index future's market. Developed countries and regions have provides a reference of risk management of stock index futures for us, the risk control mechanism and supervision system experience of different countries and regions is different, we must carry out our own risk control after the analysis of the particular market and trading environment in our country and the common risk control theory of other countries.VaR method is one of the general risk measure tools which widely used in the financial risk assets. Stock index future's risk analyze is establish on the actual level of the product's risk. In the article, we use VaR estimation which attack with ARCH and GARCH models, and this model can improve the accuracy of risk estimation. And the output of VaR estimation risk will provide regulators a more reliable risk management and the standard of stock index futures margin level. When we set up the risk control and monitoring system, we should use the general principles of national risk control principals, and ask the most innovative ones. The risk regulatory system of stock index futures should be set up as the one dollar three-tie model, that means the government regulation should be as the core, and give full attention to stock index futures trade association's self-regulation act, at the last, we should relying on the basic trading control measures which set up by Stock Index Futures exchanges, in the end control all kinds of risks from different trading level and prepare entirely for our country's Stock Index Futures trading.