The Research On The Spot Electronic Marketplace Risk Management

The spot electronic trading, also known as electronic commoditiestrading, is a new collection of B2B e-commerce model, modern financialtransactions, modern logistics, modern information spot trading mode,which can effectively achieve the rapid turnover and circulation of goods,accelerate upgrading and the transformation of traditional spot market, toachieve the the purposes of investment, price discovery, avoiding risk.Fundamentally speaking, the spot electronic trading risk lies in theprice fluctuations, speculative hedge, and the margin leverage irrationalinvestment behavior; external risks dues to legal, regulatory, competition,credit system, speculation, international financial environment lead,internal risks are from the technology, information, storage, financialsecurity, operation, and the risk of traders set of price volatility risk andliquidity risk. The great circle Intime is located in Nanjing, JiangsuProvince; it is a precious metal electronic transactions qualificationtrading platform, using fairness, impartiality, openness, integrity as thebasic principles of organization of large-scale precious metal auction,precious metals traded, precious metals repurchase transactions, to help relevant companies complete the hedging, risk aversion for the quick saleof precious metals, the rapid flow of power sail. The great circle Intimetake with deposit system, the position limit system, large reporting system,forced liquidation, risk warning system in risk management, but it has notyet established a comprehensive risk management system.Risk management is a comprehensive process; it is a combination ofa series of measures in corporate governance, internal controlmechanisms, corporate culture and the specific operation.So I raised a lot of measures in the corporate governance structure,which included the introduction of the Risk Management Committee, theRemuneration Committee, the Audit Committee, optimization ownershipstructure, improving the general meeting of shareholders, board ofsupervisors functions, improving the operation of the manager, giving fullplay to the Chief Executive Officer of risk prevention and controlfunctions, the establishment of internal accountability and other measures.I think it is very important to emphasize the role of management control,accounting control and internal audit. I Emphasised on high-leveladvocacy, knowledge sharing, improve the incentive mechanism tounderstand the habits and training of customer transactions in the riskmanagement culture.In scientific management methods, I suggest that inaddition to the original system we can also introduce double standard riskfactors, VaR approach to managing risk. This article about the research of the the great circle Intime riskmanagement has an important role not only for the great circle Intime’slong-term development in risk management, also have a certain referencevalue for othe electronic spot exchange risk management in the sameindustry.