China Financial Futures Exchange (CFFEX) is a demutualized exchange dedicated to the trading, clearing and settlement of financial futures, options and other derivatives. On September 8, 2006, with the approval of the State Council and China Securities Regulatory Commission (CSRC), CFFEX was established in Shanghai by Shanghai Futures Exchange, Zhengzhou Commodity Exchange, Dalian Commodity Exchange, Shanghai Stock Exchange and Shenzhen Stock Exchange. The establishment of CFFEX bears great strategic significance in deepening the financial market reform, enhancing the financial system and performing functions of the financial market so as to adapt to the economic "new normal".
CFFEX shoulders the mission of serving the real economy and supporting the construction of a multilayered capital market system. By providing secure, efficient and mature financial derivatives products and services to the market, CFFEX facilitates the rational transfer and allocation of financial risks, improves efficiency of the financial market and boosts social and economic prosperity.
CFFEX's main functions include organizing and arranging the listing, trading, clearing, settlement and delivery of financial futures and other derivatives, formulating business rules, conducting self-management, disseminating market trading information, providing technology, venue and facility services as well as other functions approved by the CSRC.
Upholding high standards and market stability, CFFEX actively promotes innovation to expand its equity, interest rate and foreign exchange product offerings and equip market participants with more diversified risk management tools. Supported by its secure and efficient technological system and drawing from the advanced technologies and ideas of domestic and foreign exchanges, CFFEX provides an all-electronic trading platform that is well-structured, sophisticated and stable.
CFFEX applies a hierarchical member clearing system, with members being classified into clearing members and trading members. Clearing members are further categorized, by scope of business, into trading clearing members, full-clearing members and special clearing members. This system aims at providing extra security to the market with a multilayered clearing risk control framework.
With a series of rules in place such as evaluating investor suitability, coordinating cross-market regulation and monitoring abnormal trading activities, CFFEX strives to maintain the orderly functioning of the financial market, safeguard market openness, fairness and impartiality, protect the lawful rights and interests of investors, especially small and medium investors, and prevent systemic risks.
Furthermore, CFFEX steadily advances the opening-up of the financial futures market by joining global futures trade associations, signing MOUs with major overseas exchanges and strengthening cooperation in information sharing, personnel training, business research and studies, product development, etc., thus meeting the domestic and foreign needs for cross-border derivatives trading.