foreign exchange futures market

Foreign exchange futures market (Forward Exchange Market) refers to the organized market in which futures contracts are bought and sold according to certain rules and regulations.。Futures trading is the act of trading in the futures market.。

Composition

The foreign exchange futures market is composed of futures exchanges, floor brokers, futures commission dealers and clearing houses.。Now the meaning and main characteristics of each component

foreign exchange futures market

Divided as follows:

1.Futures Exchange。A futures exchange is a place where futures contracts are specifically bought and sold.。Currently, futures exchanges around the world are generally non-profit member organizations。Only those who have obtained the negative qualification of the exchange will be able to enter the exchange site for futures trading, while non-members can only conduct futures trading through member agents.。The governing body of a futures exchange usually consists of a board of directors, executive bodies and various committees.。The board of directors is elected by member directors and non-member directors; the executive body assists the board of directors in performing business-related duties; there are presidents and executive officers; the subordinate committees include the Transaction Management Committee, the Education and Marketing Committee, the Meeting Page Committee, the Arbitration Committee, and the Futures Contracts Committee, which are responsible for specific business work.。The futures exchange itself does not participate in futures trading, operating funds mainly rely on the founder's investment, membership fees and fees, its functions are: to provide trading venues;。

2.On-market brokers and futures commission dealers.。Any person who has membership and enters the futures exchange to trade is called an on-market trader.。Some of the on-market traders trade exclusively for their own benefit, while more of them receive a large number of trading orders from outside the exchange and trade futures according to the orders of the off-market host, which we call professional speculators and the latter as on-market brokers.。Futures commission traders, on the other hand, are companies or individual organizations that conduct futures trading on behalf of financial, commercial institutions or the general public for the purpose of receiving commissions from agency transactions.。It is an intermediary for non-members to participate in futures trading, and its main functions are: to provide customers with the service of completing trading orders;。

Foreign exchange futures trading is mainly carried out by on-market brokers on futures exchanges and instead of non-negative futures commission traders.。

3.Clearing House。The clearing house is an independent institution responsible for the delivery, hedging and settlement of futures contracts conducted within the futures exchange, which is the core of the operation mechanism of the futures market.。Through the clearing house, the transfer, sale and actual delivery of futures contracts can be carried out at any time, without notifying the counterparty, it is responsible for the unified settlement, clearing and handling of goods delivery procedures, which is the special "replacement function" of the clearing house.。All this behavior of the clearing house can be achieved smoothly because of its financial strength and the implementation of the margin system, which is a strict debt-free financial operation system.。