The China Financial Futures Exchange (CFFEX) is a key player in China's financial landscape.The CFFEX was founded under the authorization of the State Council of the People's Republic of China and CSRC.
CFFEX provides a platform for hedging against risk in trading, offering derivatives, primarily futures and options, with transparent prices, in a formal and secure trading environment.
The CFFEX started trading officially on September 8, 2006, in Shanghai (with the system prepared prior), and was sanctioned to operate by five institutions with participation from: Shanghai Futures Exchange, Zhengzhou Commodities Exchange, Dalian Commodity Exchange, Shanghai Stock Exchange, and Shenzhen Stock Exchange.
This initiative represented a significant commitment to reforming China's financial system, strengthening its national financial sector, and enabling the economy to engage with new international trends in economic development.
Although the CFFEX engages in physical trading of derivatives, it has assumed a strategic role in relation to China's capital markets.
The mission of the CFFEX is to support the real economy and the country's multi-layered capital market.
The CFFEX not only strives to deliver financial derivative products and financial derivative services that are safe, efficient, and sound, but it also aims to facilitate the transfer and allocation of financial risk, improve market efficiency, and support the economy of the nation as well as enhance the overall stability and competitiveness of China’s financial system.
Core Services and Responsibilities
CFFEX offers a broad list of responsibilities to serve its stakeholders and promote prudent operations:
• Organizing and overseeing the trading, clearing, and settlement of financial futures and derivatives
• Formulating and implementing market rules
• Self-regulatory measures for fairness and transparency
• Providing market data, statistics, and reports
• Providing technologies, infrastructure, and trading systems
• Other functions as approved by CSRC
Through these services, CFFEX has established a valuable and innovative entity that serves the needs of a wide range of investors.
Technology-Enabled Trading System
One of CFFEX's strengths is its fully electronic trading system that provides fast, safe, and efficient trading.
By utilizing technology and applying best practices from worldwide exchanges, CFFEX developed a comprehensive and stable trading platform capable of processing high volumes of transactions.
A robust trading system is crucial for market participants, as it offers a seamless trading experience while ensuring maximum operational reliability.
Membership Structure & Risk Management
CFFEX has a tiered/EU clearing membership structure that ensures prudent and secure operation.Members are classified into two groups:
1.Clearing Members
2.Trading Members
Within the clearing membership structure, CFFEX classifies each member by business scope:
• Trading Clearing Member
• General Clearing Member
• Special Clearing Member
The layered membership structure enables the effective management of risk, systemic stability, and integrity in the financial futures market.
Investor Protection & Market Integrity
CFFEX is committed to protecting investors and maintaining market transparency.
