The Research And Implementation Of Standerd Warehouse Receipt Transaction Platform

Futures delivery plays a vital role in the whole futures trading process,which is the link between the futures market and the spot market.With the continuous development of the futures market,domestic and international major futures exchange design & develop a reasonable delivery system in accordance with the different characteristics of the product.While there still exists the concern resulting from the delivery risk to buyers due to the most used delivery system(physical delivery)in domestic.To reduce the delivery risk,exchanges provide more options to the sellers on commodity quality,brand and storage location which leading the delivery risk to the buyers.The severity of the delivery risk further raised since the year-round premiums system adopted.The analysis on the issues of centralized physical delivery focuses on two perspectives: on the one hand,to meet buyer's needs by providing adequate kinds & sufficient amount of commodity;on the other hand make the Contango and Backwardation real works,reflecting the market price & tightly following the market changes.Meanwhile design & develop a standard warehouse receipt trading platform based on study result.The following aspects are the key points during the platform design:1.Choose the appropriate transaction mode.Regarding the variety transaction modes of commodity trading with respective characteristics,finally identified three modes: OTC transaction,Inquiry transaction and swap transactions after a serious of analysis & comparison.OTC transaction is led by the seller,who proactively sell the standard warehouse receipt and the buyers purchase upon their needs.Inquiry transaction is the buyers who release their procurement requirement.While swap transactions could either sellers or buyers who published their requirements and complete the settlement when capturing the receipt meet the needs.Another option in the swap transactions is capturing the deal information by automatically matching of system.OTC & Inquiry tractions solve the problem of contango & backwardation marketization from the perspective of both buy and sell.And swap transaction could solve the delivery warehouse receipt issues of buyers in case the delivery is not ideal.2.Design the business process.Business process is a critical component of warehouse transaction process,carrying out through each delivery.The standard and rationale of the process designed finally result in the efficiency & security of the delivery operation,which also means the effectively reduction of buyers' risk level.In this article,the business process of platform is designed considering the reliability,security standardization and flexibility of warehouse receipt delivery.The first objective is ensure the warehouse receipt of the transaction is valid and not involved in any pledge or mortage issue.Secondly ensure the security of investment funding,strictly follow the risk control on of the available funds of investor,dealer and exchange.Then the business process should be close to the existing regulations & policies of futures exchange.Last but not least,the delivery platform should be user oriented,the traders can easily manage including order,cancel etc.3.Plan the architecture.Utilizing the layer & modularize approach,and embed with workflow stream,the solution could be expanded the function to fit international futures market.Carrying out from analysis,design,and implementation to verification,this standard warehouse receipt trading platform is in the piloting phase at present.The platform finally reduce the settlement risk of buyers and proven to be a comprehensive and flexible deployment solution.