China’s national debt futures business was first sponsored by Shanghai Stock Exchange on December 28，1992 and failed on May 17，1995 because it was not provided with good factors and had repeated disturbances.

We derive correct hedge ratios by capturing the neglected volatility linkage between Treasury futures and cheapest-to-deliver Treasuries.

T-bond futures should consider the tax-free factor of T-bonds;

T-bond futures is a financial derivative that derives from Treasury bonds.

China has carried on the national debt futures in early 1990s.

China developed its own national debt futures in late 1992.

By studying the trends of the domestic and foreign country power markets, the three transaction modes, spot transaction, futures transaction and forward contract transaction, are analyzed and compared.

Applying the recent contract theory,the paper analyzed three transaction mode: ① market transaction,that the two firms ex post renegotiate surplus;② contract transaction,a bilateral contract transaction mode;and ③ futures transaction,a multi-side contract transaction mode.

Based on a comparative study of China s futures accounting standard and the accounting standard practised in the American futures market, the article points to reconsideration of futures transaction accounting.