The China Financial Futures Exchange (CFFEX), is a futures exchange

Futures exchange

A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. These types of...

 established in Shanghai

Shanghai

Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...

 in September 08, 2006 -- with the approval of the State Council and the authorization of China Securities Regulatory Commission

China Securities Regulatory Commission

The China Securities Regulatory Commission is an institution of the State Council of the People's Republic of China , with ministry-level rank...

 (CSRC). It is a joint venture

Joint venture

A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...

 of the Zhengzhou Commodity Exchange

Zhengzhou commodity exchange

Zhengzhou Commodity Exchange , established in 1990, is a futures exchange in Zhengzhou, one of the three futures exchanges in China...

, Dalian Commodity Exchange

Dalian commodity exchange

The Dalian Commodity Exchange is a Chinese futures exchange based in Dalian. It is a non-profit, self-regulating and membership legal entity established on February 28, 1993....

, Shanghai Stock Exchange

Shanghai Stock Exchange

The Shanghai Stock Exchange , abbreviated as 上证所/上證所 or 上交所, is a stock exchange that is based in the city of Shanghai, China. It is one of the two stock exchanges operating independently in the People's Republic of China, the other is the Shenzhen Stock Exchange...

, Shenzhen Stock Exchange

Shenzhen Stock Exchange

The Shenzhen Stock Exchange is one of the People's Republic of China's two stock exchanges, alongside the Shanghai Stock Exchange. It is based in Shenzhen, China...

 and the Shanghai Futures Exchange

Shanghai Futures Exchange

The Shanghai Futures Exchange was formed from the amalgamation of the Shanghai Metal Exchange, Shanghai Foodstuffs Commodity Exchange, and the Shanghai Commodity Exchange in December 1999...

.

Following the principle of higher starting point and higher standard, CFFEX constructed an electronic market which follows the trend of global development. Also CFFEX has a unique multi-tiered members' clearing system, strict risk management

Risk management

Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities...

 policy and an organization structure like a corporation to improve its competitive strength and development potential.

In early 2008, it launched the CSI 300

CSI 300

The CSI 300 is a capitalization-weighted stock market index designed to replicate the performance of 300 stocks traded in the Shanghai and Shenzhen stock exchanges.The index is compiled by the ....

 index futures, the first contract of CFFEX. Later, CFFEX introduced other financial derivatives

Derivative (finance)

A derivative instrument is a contract between two parties that specifies conditions—in particular, dates and the resulting values of the underlying variables—under which payments, or payoffs, are to be made between the parties.Under U.S...

such as other index futures, index options, government bonds futures and currency futures. CFFEX launched its first product by conducting trading systems testing and running a series of programs to educate investors about risks.

External links

• China Financial Futures Exchange - Official Website