Overview
As a special settlement member of China Financial Futures Exchange ("CFFEX"), ABC provides settlement services to CFFEX members, charges commission and bears settlement risks, accordingly.
Before the official launch of stock index futures (SIF), ABC provides settlement services for SIF simulation trading as required by CFFEX.
Target Customers
Trading members of CFFEX.
In the stage of SIF simulation trading, ABC provides settlement services to futures companies which act as trading members of CFFEX and the futures companies, securities companies, fund companies and other financial institutions that are approved by CFFEX to take part in the simulation trading as trading members.
Features
1. To provide trading members with futures settlement and contract delivery services through the special settlement membership system.
2. To monitor the transactions and settlement risks of trading members on a real-time basis through the risk monitoring system, and to promptly inform trading members that relevant measures should be taken to reduce risks.
3. To take proactive measures within the scope of authorization to control risks in the event that trading members fail to fulfill contractual obligations.
4. To transfer margin for trading members in compliance with regulatory requirements on margin depository.
5. To report the settlement information to regulatory authorities and CFFEX.
Benefits
1. ABC special member system has passed the stress and panorama testing of CFFEX, proving qualified for operation.
2. ABC special member system is perfectly compatible with CFFEX interface, and supports SUNGARD, HANG SENG and other trading systems. Both direct and indirect orders are accepted. Featured by sound performance, reliability and accountability and no order lost in indirect orders, our system ensures steady operation of transactions.
3. Having a capacity of 100,000 lots position held by 50,000 customers of 50 trading members, ABC special member system adopts real-time communication mechanisms and advanced encryption technology to ensure safety.
Procedures for SIT Simulation Trading Settlement Services
1. The trading member and ABC sign the Letter of Intention on Settlement Cooperation of SIF Simulation Trading.
2. Relevant application materials are submitted to CFFEX.
3. Both parities negotiate system setup, link building, transaction testing and relevant matters.
4. For trading members seeking to transfer position, "smoke testing" is arranged according to the time table of CFFEX.
5. Simulation trading can be carried out on the next trading date.
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