Xinghai Fang, vice chairman of the China Securities Regulatory Commission, said that eligible leading futures companies are encouraged to go public for financing
Xinghai Fang, vice chairman of the China Securities Regulatory Commission, stated at the 17th China (Shenzhen) International Futures Conference in 2021 on December 5 that we must strengthen the confidence to promote the construction of the futures market and serve the high-quality development of the real economy.
First, take the opportunity of futures legislation to further strengthen the rule of law in the futures market. The second is to strengthen market construction and create a diversified open futures derivatives market system.
The third is to continue to improve the futures intermediary system.
Xinghai Fang said that since the beginning of this year, breakthroughs have been made in the formulation of the Basic Law of the Futures Industry. The Futures and Derivatives Law has passed the first and second readings and is expected to be officially released after the third reading in 2022.
Guided by the legislative framework and principles of the futures law, promote the improvement of departmental regulations, self-discipline rules and other institutional systems, continue to consolidate the foundation for the construction of the rule of law in the futures market, and improve the ability and level of governing the market according to law.
Focusing on building a diversified and open futures derivatives market system, Xinghai Fang said that the next step is to improve the variety rule system, continue to optimize the market-making system, accelerate the construction of the over-the-counter derivatives market, and continue to open up to the outside world.
Guided by the demand of the industrial chain, we should optimize the stock, do a good job of increment, and continue to expand the new varieties of the industrial chain related to the listed products. Promote the innovation of futures products such as carbon emission rights and new energy metals.
According to the actual demands of the industry group, we will continue to promote the optimization of rules and systems, continue to enhance contract continuity, optimize the layout of delivery warehouses, further improve the warehouse receipt transaction mechanism and the premium and discount mechanism, and promote futures prices to better reflect the situation of spot supply and demand.
In terms of accelerating the construction of the over-the-counter derivatives market, Xinghai Fang said that it is necessary to steadily expand the pilot varieties of warehouse receipt transactions, improve the service functions of the integrated futures trading platform, strengthen cooperation with emerging technology, finance, warehousing, logistics and other parties, and strengthen industry and finance. Accelerate the construction of a commodity ecosystem, build a commodity trading center and an information center, promote the coordinated development of on- and off-market, and continue to expand the coverage of futures derivatives to serve the real economy.
Focusing on futures and expanding opening to the outside world, Xinghai Fang said that it is necessary to continue to expand the scope of specific open products, deepen the price influence of opened products, and strive to promote breakthroughs in regional pricing influence of key products such as crude oil, PTA, and iron ore;
Expand the diversified and open model, steadily advance the layout of overseas foreign exchange warehouses, and gradually realize the “bringing in from the transaction side and going out on the delivery side”.
Deeply promote institutional opening, introduce more overseas traders to participate in the domestic market, and promote the improvement of the quality and service level of the futures industry with a higher level of opening.
Futures companies are an important bridge connecting the futures market and investors. Xinghai Fangs aid that it is necessary to guide futures companies to play more of their functions as a dealer, and to promote the common development of brokerage and other businesses of futures operating agencies.
One is to support industry-leading companies to accelerate their development.
The second is to vigorously support the development of futures risk management companies.
The third is to steadily expand the group of traders.
Xinghai Fang expressed that it is necessary to support futures companies to expand financing channels and carry out cross-border operations, encourage qualified leading futures companies to go public for financing, and strive to build a group of strong capital, international competitiveness, risk management and asset pricing services. Support the derivatives and commodities service company for core business.