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【Futures School】 The 6th Investment Consulting Knowledge Conference
Time: 2021-06-09

In recent years, with the complex and ever-changing international and domestic economic and financial situation, and the significant fluctuations in commodity prices, the demand for risk management and hedging in the futures market from a large number of physical enterprises and industrial customers has been increasing day by day. Large and medium-sized enterprises and banks have an increasingly strong demand for futures investment consulting services. After the stable launch of stock index futures in 2010, institutional investors increasingly needed specialized futures investment consulting services from futures companies. At the same time, the futures market is also in a critical stage of transitioning from quantitative expansion to qualitative improvement.

Before the launch of this business, there was a lack of standardized management for futures investment consulting activities in the futures market. In order to actively promote the function of the futures market, guide futures companies to provide more and better professional services for physical enterprises, industrial customers, and institutional investors, further improve the service quality and level of the futures market to the national economy, regulate and strengthen the supervision of futures investment consulting business of futures companies, guide the futures industry to strengthen the construction of professional talent teams, and promote the standardized and healthy development of futures investment consulting business, the China Securities Regulatory Commission has formulated the "Trial Measures for Futures Investment Consulting Business of Futures Companies" and launched this business.

Futures investment consulting services of futures companies refer to profitable businesses such as risk management consulting, futures research and analysis, and futures trading consulting carried out by futures companies based on customer commissions. The specific business content includes risk management consulting, futures research and analysis, and futures trading consulting. Risk management consulting services refer to assisting clients in establishing risk management systems and operating procedures, providing risk management consulting, specialized training, etc. Futures research and analysis business refers to the collection and organization of futures market and various economic information, research and analysis of futures market and related spot market prices and their related influencing factors, and the production and provision of research and analysis reports or information. Futures trading consulting business refers to designing investment plans such as hedging and arbitrage for clients, and formulating futures trading operation strategies.

Futures investment consulting business is based on the risk management needs of physical enterprises, industrial clients, and institutional investors, leveraging the professional advantages of the futures industry to carry out futures investment consulting services with risk management consulting services as the core, supported by futures research and analysis and futures trading consulting. It gradually changes the previous consulting service model that relied solely on futures brokerage business and aimed at "attracting clients to speculate", and effectively improves the service level and quality of the futures industry for investors and the national economy.

In 2010, the China Securities Regulatory Commission issued the "Trial Measures for Futures Investment Consulting Business of Futures Companies". The trial measures are divided into six chapters and thirty-six articles, which stipulate the qualifications of futures investment consulting business and personnel, business rules, prevention of conflicts of interest, supervision and management, and legal responsibilities of futures companies.In addition, in 1997, the State Council Securities Commission also formulated the "Interim Measures for the Administration of Securities and Futures Investment Consulting".

In order to facilitate the smooth launch of futures investment consulting services and guide futures companies in formulating futures investment consulting service contracts, in accordance with the provisions of the "Trial Measures for Futures Investment Consulting Services of Futures Companies", the China Futures Industry Association has formulated the "Guidelines for Futures Investment Consulting Service Contracts". This guideline includes essential contractual contents such as statements and guarantees, rights and obligations between investors and futures companies, and requires futures companies to clearly state the rights and obligations of both parties to investors in the main text of the contract. In addition, the guideline also includes the "Risk Disclosure Statement for Futures Investment Consulting" and the "Notice to Futures Investment Consulting Customers", requiring futures companies to disclose to investors the risks of accepting this service and remind investors of various contents they should be aware of.

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