Walter Hutchens’ Blog

The China Financial Futures Exchange (CFFEX) has, with approval from the China Securities Regulatory Commission (CSRC), promulgated rules on the trading of stock index futures, according to this Chinese media report.

CFFEX issued the following with CSRC approval:

• Trading Regulations (Jiaoyi guize)《交易规则》
• Measures for Handling Violations of Regulations and Agreements (Weigui wei yue chuli banfa)《违规违约处理办法》

Additionally, CFEX issued on its own a series of detailed implementing rules for stock index futures trading, including detailed rules on:

• Detailed Trading Rules (Jiaoyi guize xize)《交易细则》
• Settlement (Jisuan guize)《结算细则》
• Settlement Business by Members of the Settlement Association (Jiesuan huiyuan jiesuan yewu xize)《结算会员结算业务细则》
• Measures on the Administration of Membership (Huiyuan guanli banfa)《会员管理办法》
• Risk Control Measures (Fengxian kongzhi guanli banfa)《风险控制管理办法》
• Information Management Measures (Xinxi guanli banfa)《信息管理办法》
• Measures for the Management of Hedging (Taoqi baozhi guanli banfa)《套期保值管理办法》

All the rules were announced yesterday. They had been circulated for public comment. The drafting process reportedly began in March of 2006.

It has been official PRC policy for several years to diversify the types of financial products available in China’s markets. The most recent amendments to the company and securities laws paved the way for these chagnes. These rules bring us closer to the actual commencement of trading in stock market derivatives.

In Chinese CFFEX is the Zhongguo jinrong qihuo jiaoyisuo 中国金融期货交易所) or Zhong jin jiao (中金所) for short.

After five years I am leaving the University of Maryland. I worked in the Robert H. Smith School of Business from August 2002 until 2007. Like any job, my time at Maryland had its ups and downs. Overall, though, it was a positive experience.

As I exit I thought I’d list some of the things I’m most grateful for:

Maryland gave me my first job in academia. I was practicing law when they hired me. I love being a professor, and without a first break somewhere I could not have set off on this career path. Maryland provided that entry point.

Maryland gave me teaching experience. Teaching is my calling I think, but I had never prepared a syllabus, written an exam or stood up in front of 50+ undergraduates to deliver a lecture before I joined their faculty. Five years later, I have a wealth of teaching experience across a range of courses. Besides teaching a basic business law course to undergraduates many times, I’ve led four travel courses to China (two honors undergraduate trips to Hong Kong and two MBA travel courses to Shanghai) and taught an ethics class for executive MBA students. I’ve gone from being green to experienced as a higher-ed instructor.

It was a good place for my daughter during her early years. She attended the on-campus Center for Young Children for pre school and kindergarten. She thrived there. The CYC’s classroom teachers were superb. Because the facility is located on campus, I could finish my day’s teaching, pick her up from school and spend time with her each afternoon.

Maryland paid me well. I accumulated enough to pay off my student loans. It feels good to be able to buy my freedom back.

Maryland also gave my wife Maggie her first job in the US and sent us back to China to work together there for the last couple of years.

I’m truly grateful for all that. I’m dwelling on these and other positive things as I head off for new adventures.