The 4th China (Shenzhen) International Futures Conference kicked off yesterday, during which SONG Li Ping, General Manager of the Shenzhen Stock Exchange (SZSE) delivered a speech on the topic of stable boost to establishment of China financial derivatives market system.
SONG expressed the view that given the current international and domestic financial situations, the building of financial derivatives market should be done with the concept of “Site priority and Over the Counter (OTC) integration”.
She also pointed out that from financial derivatives of developed countries we can see that different markets are moving towards integrated modes in a bid to uplift efficiency and reduce credit risks.
The current America-leading financial crisis exposed risks of Over the Counter and reminded us of necessity to tighten market supervision and risk management. Some overseas bourses have started to provide technological and settlement services to OTC, which indicates accelerated integration progress of OTC.
Establishment of financial derivatives market system is inalienable to the country’s basic condition and environment. Characteristics of China’s market should be taken into full consideration to avoid potential risks and bolster transaction efficiency when building the market.
SONG noted that bourses are establishing different transaction platforms tailored to different needs to strengthen their roles in the capital market. To provide complete financial product chain and financial supermarket of integrated products with derivates is the historical objective of the SZSE who has always been seeking for diversified transaction platforms. The SZSE is to launch a comprehensive transaction platform and integrated supervision system soon. It aims to boost development of China’s financial derivatives market in collaboration with institutions from other industries.
