The long road to index futures trading
By Wang Lan (China Daily)Updated: 2007-07-04 11:32 "We just can't speed things up within our organization before all the relevant rules are put in place," said Yu.
TCSRC on June 22 said it began the process of vetting futures brokerage companies that have applied for approval to conduct clearing business.
The securities watchdog also started the qualification assessment of securities companies for IB, or introducing broker, business. IB enables an approved stock brokerage companies to earn commissions by introducing clients to futures trading through futures brokerages.
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The frequency of such examinations has been increased to three times a year. Before last year, it was held once or twice a year.
Many futures employees in China, despite having gained expertise in the commodity futures markets, have very limited knowledge of the financial futures market.
Educating investors is also a key factor in preparing for index futures. In 2006 alone, China Futures Association hosted 37 seminars on financial futures for individual investors.
In the past two years, the association has organized 20 lectures aimed at institutional investors. Alongside hundreds of lectures by the association and futures companies, investor education has also been conducted in other forms.
The simulated trading of CSI300 futures, started in October, is widely considered invaluable in providing a lifelike market experience to participants.
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