In the early morning of May 26, Xinhua News Agency was authorized to release the "Working Report of the Standing Committee of the National People's Congress (Abstract)" (referred to as "Report"). When elaborating the main tasks in the next stage, the "Report" puts forward the idea of strengthening legislation in important areas, enacting the Yangtze River Protection Law, the Rural Promotion Law, the Futures Law, and the Hainan Free Trade Port Law to promote high-quality development.
On November 30, 2019, Fang Xinghai, vice chairman of the China Securities Regulatory Commission (CSRC), said at the 15th China (Shenzhen) International Futures Conference: "The futures law that the industry has long awaited and is necessary for the development and opening of the futures market. It has been consulted by the state council and entered the legislative process of the National People's Congress." He also said that the CSRC is concentrating on steadily advancing the legislative work of the Futures Law.
In recent years, with the organization and promotion of the Finance Committee of the National People's Congress and the active cooperation of the China Securities Regulatory Commission, several drafts of the futures law have been formed. In 2020, relevant departments will adapt to new changes in the market on this basis, further promote relevant legislative research and draft improvement work, promptly submit to the Standing Committee of the National People's Congress for deliberation, and release it for implementation as soon as possible.
In fact, the new securities law implemented this year deletes the management methods of contract-type products (such as stock index futures) among securities derivatives, and expresses that relevant content will be included in the adjustment of the futures law. Relevant departments have been promoting the construction of the capital market legal system in a planned, step-by-step, and focused manner.
"At present, the community has formed a consensus on the necessity and urgency of legislation on the futures law." Hu Yuyue, director of the Institute of Securities and Futures of Beijing Technology and Business University, told the Futures Daily reporter that the launch of the futures law as soon as possible is conducive to fully affirm and further develop the futures market to find prices, hedge risks and exert other unique functions in serving the real economy.
Accelerating the development of futures law is the need to raise the legal level of the futures market. At present, the main legal basis of the futures market is the "Futures Trading Management Regulations", but according to the provisions of the Legislation Law, administrative regulations are difficult to deal with the basic civil legal relationships, civil legal liabilities and central counterparties involved in futures trading, termination of net settlement and other core derivatives transaction mechanism.
Accelerating the development of futures law is the need to promote the development of the futures market. With the development of China's economy and society, as well as meeting the risk management requirements of the diversification of the real economy, China's futures market innovation has vigorously flourished. The current "Regulations on the Management of Futures Trading" focuses on the adjustment of commodity futures trading, with less focus on financial futures, futures options, the opening of futures markets, and OTC derivatives trading. Accelerating the formulation of the futures law can provide legal protection for the development of the futures market in a timely manner. which will promote the futures market to play a role in more areas of the national economy.
Accelerating the formulation of the futures law is necessary to protect the legitimate rights and interests of futures investors. The risk of futures trading is high, and there are many individual investors in China's market, who need to be protected to a higher degree. To further clarify the rights and obligations of different players in the futures market, and to clarify the civil and administrative legal liabilities of different players, accelerating the formulation of a futures law will be of help to effectively protect the legitimate rights and interests of investors.
Wang Hongying, director of the China (Hong Kong) financial derivatives investment research institute, believes that the futures market is a rule-oriented market. The design of legal system is directly related to the improvement of market operation quality and the effective play of functions. The industry is eagerly looking forward to the early launch of the futures law.
Wang Yang, manager of financial futures department in Shenyin Wanguo futures research institute, said that, after nearly 30 years of development, the scale and efficiency of the futures market in China improved a lot. However, compared with the mature markets abroad, there are gaps in some aspects. One of the most important reasons is that the market based system is not perfect enough, such as industry basic law has not yet come.
In this year's national two sessions, representatives and members had a strong voice for speeding up the futures law. Jiang Yang, a member of the national committee of the Chinese people's political consultative conference (CPPCC) and former vice chairman of the China securities regulatory commission (CSRC), submitted proposals for the third year in a row, calling for accelerating the formulation of a futures law, promoting the standardized development of the futures market, protecting the legitimate rights and interests of futures investors, and accelerating the opening of the futures market to the outside world.
Liu Lei, a deputy to the National People's Congress and director of the Liaoning securities regulatory bureau, also submitted proposals to the two sessions this year to speed up the formulation of the futures law and coordinate with the new securities law. He suggested to consolidate the development achievements of China's futures market, and provide legal guarantee for the sustainable, stable and healthy development of the futures market.