Hexun.com: “Steady Operation, Open-end Development”: SHFE Held the 1^st Training Session for Futures Firms CROs

Updated on: November 3, 2017

The first Training Session for Futures Firms CROs was held by Shanghai Futures Exchange (“SHFE”) on November 2, 2017. With the theme of “Steady Operation, Open-end Development”, this training session was geared to the needs of the futures firms CROS for innovative business training and risk control-related affairs exchanging. The CROs from around 150 futures firms participated in the session. He Jun, Member of Party Committee and Deputy General Manager of SHFE, attended the training session and delivered a speech.

According to He Jun, the 19^th National Congress of the Communist Party of China successfully concluded recently reaffirmed the fundamental development orientation of serving the physical economy through financial market, and therefore enhance our confidence and determination to build up the futures market. As a significant part of multi-layered capital market, the futures market is devoted to serving and satisfying multi-level risk management needs in the development of physical economy, and facilitating the national economy to grow with higher quality as well as more efficiently, fairly and sustainably. As the important national financial infrastructure, the Exchange shall play the pivotal role in the futures market, and shoulder its historical mission as well as national responsibilities. Since the start of this year, SHFE has expanded the width and depth of serving for the physical economy by proactively integrating the needs of physical economy and expediting the market innovation. The Exchange has increasingly deepened the preparations for the listing of crude oil futures, pulp futures and copper futures option, vigorously propelled the construction of commodities platform and comprehensively implement the "Insurance + Futures" Targeted Poverty Alleviation, to name just a few new highlights. In the meantime, the Exchange has also effectively protected the economic and financial safety by implementing the regulation lawfully, thoroughly and strictly and prevent the market risks seriously.

It is also learned that SHFE has, under the leadership of the new session of the Party Committee, enhanced the internal strength as well as the external image through the theme event of “the Year of Working Style Upgrade”. Adhere to the principle of carrying out the Open-door Operation, the Exchange has heeded the voice from the market, and grasped the new trends and echoes of the market.  After collectively soliciting options from the members through field survey and investigational study, the Exchange has continuously optimized its operations, refined and improved risk control measures, enhanced hedging and arbitrage approval procedures and margin management measures, and pushed forward the automation of warrant matching at the link of delivery. In addition, as an important measure to implement the frontline regulatory duties and upgrade the working style, the Exchange also provides the CROs of the members with training as well as the updates on its new products and risk-control related operational requirements.

During the session, SHFE shared the updates with CROs about the operations closely related to the risk control, such as monitoring, trading and settlement. The Exchange also required that the members shall push forward the internal departments and posts to carry out well the risk control at every risk control time node, and make joint efforts in the targeted reminders and risk control through continuously keeping up with the trading of products. The members must grasp the real information about the clients at the links of the account opening, trading and funds to effectively implement the principle of “Know Your Client”, and earnestly carry out the regulatory obligations and duties towards the clients to upgrade the operational philosophy of compliance and enhance the awareness of social responsibility.