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    Gu Mingde: Rules For Stock Index Futures Trading Should Be Revised

    2014/6/7 8:29:00 32

    Gu MingdeStock Index And Futures Trading Rules

    < p > strongly recommended that the management departments carefully read a research report entitled "how to make T+0 stock index futures T+1 stock market". This report makes a detailed and convincing study of stock index futures in Shanghai and Shenzhen stock markets, using the so-called hedging concept trading rules, and how to become a tool for shorting the Shanghai and Shenzhen stock markets. The report is reasonable, section, data, case, empirical link and process description. The report inevitably concluded that the current Shanghai and Shenzhen stock index trading rules lose fairness and lose the three functions that futures should have. < /p >
    < p > has become a major institutional obstacle for the sound development of Shanghai and Shenzhen stock markets. If we do not cancel the stock index futures or make necessary changes to the current trading rules, then the fate of the bear and bully in the Shanghai and Shenzhen stock markets can not be changed. In line with the responsibility for the market and the state, if it is found that the current stock index trading rules are flawed and unfair, it should be announced in a timely manner, < a href= "http://www.91se91.com/news/index_cj.asp" > modification rules < /a >. < /p >
    < p > a few years ago, at the beginning of the opening of "a href=" http://www.91se91.com/news/index_cj.asp "Shanghai and Shenzhen stock index < /a >, many investors in the market questioned the" a "href=" http://www.91se91.com/news/index_cj.asp "> trading rules < /a > the opening of multi agency institutions with 600 hands, and the insurance companies opened the rules of unlimited positions. Such rules are conducive to the short selling of the empty side. If this happens, there will be no bull market in Shanghai and Shenzhen stock markets. As for the market's doubts, the relevant department rulers explained that the main purpose of stock index futures is to hedge the amount of institutional cash. A large number of institutions buy stocks, if there is no guarantee system, institutions can not guard against the risk of falling stock prices. Therefore, the stock index futures are required, and the more the stock is bought, the more the cover is also needed. This explanation may be an important reason for the delay in trading rules. But this explanation is not correct. It confuses major differences between commodity futures and stock index futures. < /p >
    < p > we know that the hedging function of commodity futures stems from the fact that commodities can not be sold in a short period of time, such as selling, crop production period and so on. This requires pre selling short hedging before the appointed time, so as to achieve pre hedging purposes. However, financial products, especially stock products, can not sell short physical attributes before delivery date. < /p >
    < p > no matter how many stocks the institution and individual buy, they can sell short on the next day or the other day. Therefore, the function of hedging of financial derivatives, especially stock futures, has been alienated and weakened. The main function of financial futures has actually turned to price discovery or speculation. That being the case, when making financial products, especially stock index futures, it should be fair to the total positions of both parties. If the management wants futures prices to stabilize and rise, then the restricted ones should not be long positions, but short positions for hedging. < /p >
    < p > on the contrary, if the concept of hedging of physical commodities is used to formulate stock futures trading rules, we should work out rules that limit the number of spanactions. So, in the stock index futures market, in most of the time period, the inevitable empty side has the advantage. Moreover, it often leads to falling stock prices and falling again, making it difficult to form a long-lasting bull market. In short, stock index futures trading rules have come to a point of revision. (< /p >
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