On The Central Counterparty System In Futures Market

The system of Central counterparty in futures market refers to the legal system in which the futures settlement institution intervenes the counterparties in the futures contract and makes centralized settlement in the position of the parties in the contract.The central counterparty system in the futures market is conducive to the administration of government departments according to law,enhancing the transparency of the futures market,ensuring the fulfillment of futures contracts and improving the settlement efficiency.At present,the central counterparty system in China’s futures market still has some shortcomings: at the legislative level,the legal system is not perfect,some entity regulations and procedural regulations are not perfect;At the law enforcement level,the lack of independent futures clearing house,supervision mechanism and supporting system is not perfect;At the judicial level,the allocation of litigation jurisdiction is improper,the plaintiff’s litigation status of the central counterparty is ignored and the burden of proof is distributed irrationally.These defects are caused by the following factors: political factors,such as national policy lag,international cooperation degree is not high;Economic factors,such as the high cost of futures,the imbalance between supply and demand of futures types,and the large fluctuation of futures prices;Social factors,such as weak awareness of the performance of futures contracts,serious market speculation,and widespread market operation by investors.It is necessary to perfect the central counterparty system in China’s futures market.At the legislative level,special laws on futures settlement should be set up to deal with the legal conflicts in the system,clarify the legal status of the clearing institutions,clarify the settlement method,supplement the transfer of contractual rights and obligations,establish the settlement registration procedure,and supplement the default disposal procedure.At the level of law enforcement,an independent futures clearing house should be established,the admission qualification of clearing members and the supervision of OTC futures trading supervision information should be standardized,the government’s supervision methods should be broadened,and the settlement property isolation system,the margin system and the supporting system of loss disposal mechanism should be improved.At the judicial level,the allocation of litigation jurisdiction should be improved,the plaintiff’s litigation rights of the central counterparty in dispute cases should be detailed,and the burden of proof of the central counterparty should be reasonably distributed.