Dynamic characteristic and efficiency analysis of the Chinese Futures Markets

With the development of the Chinese Futures Market and prevalence of futures contracts, people lay more emphasis on the efficiency of four Future Exchanges in China. How to evaluate the efficiency in an effective way becomes an important issue. This paper is based on the Nonparametric Data Envelopment Analysis (DEA) and Malmquist efficiency index to make an overall analysis on the efficiency of four Future Exchanges in China from July 2010 to January 2014. The major innovation points about this paper lie in the following four areas: (1) The efficiency of every Futures Market is estimated and the extent of the resource utilization is designated. (2) A ranking of the four Futures Exchanges in order of efficiency is arranged, which provides a new method for the evaluation on the Chines Futures Markets. (3) The scale efficiency of the Chinese Futures Exchanges is calculated, and it gives an answer to the problem of the scale economy for Chinese Futures Markets. (4) The utilization of the Malmquist efficiency index is initiated to analyse the latest changes in the efficiency of the Chinese Futures Markets, and a complete information on the efficiency of the Chinese Futures Markets is provided.