Date: May 29, 2013
Source: Futures Daily

　　On May 28, the 10th Shanghai Derivatives Market Forum organized by Shanghai Futures Exchange (SHFE) was held in Shanghai. The theme of the forum is “Innovation and Transformation of Futures Market”. Jiang Yang, Vice Chairman of China Securities Regulatory Commission (CSRC), attended the forum and delivered a speech.
　　Jiang pointed out that vigorously developing the capital market is the important arrangement of the Central Party Committee and the State Council. As an important part of the capital market, the innovation and function of the futures and derivatives market will be of great significance on promoting the healthy development of industries related to the real economy. In recent years, with the concerted efforts of the whole industry and the great support of relevant parties, China’s futures and derivatives market has presented good developing trend. Up till now, 31 commodity products and one financial product have been listed, with over 300 contracts that cover the major fields of the national economy, such as agricultural products, base metals, precious metals, energy, chemicals and finance. The total volume of the futures market in 2012 is 1.451 billion contracts, with the turnover of RMB171.13 trillion. The continuous expansion of the market’s scale has enhanced the economic function of futures market and facilitated the healthy development of industries related to the real economy.
　　Jiang said that China’s futures and derivatives market is still at the initial stage of its development and is far from the developing demand of the real economy. Next, efforts will be made to promote the continuous market-oriented healthy development of the market, by focusing on serving the real economy and innovating. Meanwhile, development and risk prevention can not be separated. That is to say, to promote the development under the premise of preventing risks and to strengthen the risk prevention capacity during the process of development.
　　Firstly, to take improvement of the function of serving the real economy as the basic principle of all innovative activities of the capital market, based on the development demand of the real economy; secondly, to respect the market’s pioneering spirit, reduce administrative approval procedures, explore the reform of market access system, and stimulate the vigor and creativity of the major market players; thirdly, to make clear the relations between development and risk prevention, build and optimize the market’s risk detection, identification, response, and disposal mechanism, enhance the risk control capacity, and firmly hold the bottom line of preventing systematic and regional risks; fourthly, to steadily promote the opening-up policy, make full use of the advanced experience of other countries, and under the premise of risk control, introduce overseas investors step by step to enhance the function of China’s futures and derivatives market of serving the real economy.
　　Jiang said that at present and for some time in the future, CSRC will earnestly implement the spirits of the 18th CPC National Congress and stick to the principle of marketization, legalization, and internationalization. In accordance with the requirement of serving the development of the real economy and by making overall plans and taking all factors into consideration while carrying out reform and innovation, CSRC will strengthen its efforts on studying issues that have overall, fundamental, and comprehensive influences, and focus on solving the major issues that affect the development of futures and derivatives market, thus promoting the market’s transitional development at a higher level.
　　Firstly, we should focuse on promoting the transformation of regulatory functions to create better environment for the development of market participants. On the one hand, CSRC will continue to cancel a few administrative approval items and improve control over matters that are out of its management; meanwhile, it will revise and improve relevant laws and regulations to leave enough legal space for streamlining administration and delegating power to the lower levels. On the other hand, it will continue to optimize the institutional arrangement of supervision resources utilization and information sharing, in addition to strengthening the utilization of the scientific and technological means and the information technology system in its supervision.
　　Secondly, efforts should be made to vigorously promote the market’s innovative development. CSRC will try to launch the treasury bond futures this year and actively promote the listing of commodity futures products, such as steam coal and iron ore. It will also prepare for the listing of asphalt, ferroalloy, artificial board, and such approved futures products as steel, rice, and plastics, and continue to promote relevant work on build the crude oil futures market. Besides, it will research to develop option, commodity index and other products, actively expand the channels and modes of the market’s serving “agriculture, farmers and rural areas”, and facilitate the innovative development of the futures industry, thus forming an industrial development pattern with rational construction, multiple organizations, and a variety of products.
　　Thirdly, we should continuously enhance the regulatory and law enforcement efficiency. CSRC will focus its regulatory efforts on the key fields with major concern by market participants and direct influence on market’s development. It will further strengthen its core responsibility of maintaining the principle of “fairness, openness and justice”, safeguarding the legitimate rights and interests of investors and particularly the small and medium-sized investors, and promoting the healthy development of the capital market. It will focus its efforts on managing and getting control over the matters within its responsibility. In its further plan, CSRC will strengthen supervision, continue to intensify law enforcement, crack down on market behaviors that violate laws and regulations, and enhance the credibility and deterrence of its supervision.
　　Fourthly, we should intensify efforts in protecting investors. CSRC will keep on intensifying its efforts in protecting the legitimate rights and interests of investors, particularly, the small and medium-sized investors, continue to optimize the investor appropriateness system on the futures market, and promote intermediary service institutions to keep their positions and fulfill their duties. Efforts should be made to further optimize the investor’s insurance funds system and, by focusing on the goal of enhancing investors’ risk awareness and self-protection ability, continue to expand the breadth and depth of education and service for investors.
　　Tu Guangshao, Member of Standing Committee of the CPC Shanghai Municipal Committee and First Executive Deputy Mayor of Shanghai, attended the forum and, on behalf of the Shanghai Municipal Government, extended his congratulation on the opening of the forum. Ren Anjian, Deputy Director of the Legislative Affairs Office of the State Council, also attended the forum. Former CSRC Chairman Zhou Zhengqing and Zhou Daojiong, and Former Vice CSRC Chairman Fan Fuchun attended the forum and delivered speeches. The opening ceremony of the forum was presided over by Liu Nengyuan, General Manager of SHFE.