I. The Definition of Financial Futures Special Settlement Services
Based on laws and regulations and trading rules, ICBC provides futures settlement services and contract delivery services at the contract maturity day for trading members through special settlement member system; and conducts real-time risk-monitoring for the trading members through special settlement member risk-monitoring system.
II. Target Client
The futures companies, funds companies, insurance companies, and other trading members of China Financial Futures Exchange (CFFE for short hereafter) with the qualifications to participate financial futures service
III. Service Introduction
1. Provide futures settlement services and contract delivery services at the contract maturity day for trading members according to laws and regulations and trading rules.
2. Conduct real-time risk-monitoring on trading members' trading and settlement risks through special settlement member risk-monitoring system, and promptly notify trading members to take measures to reduce trading risks;
3. Proactively take risk-control measures within the authorized power to prevent service risks from happening under the precondition that trading members failed to perform contracted obligations;
4. Promptly conduct debt debit and credit services for trading members based on the stipulations defined by regulatory departments on the safety depositary of security deposits;
5. Report related trading settlement situations to regulatory departments and futures exchange based on stipulations.
IV. System Advantages
1. ICBC takes the special settlement member system from Shanghai Futures Information Technology Company, Ltd. that has been completed the installations of operating system, database, and application systems; and passed system pressure test and panorama test from CFFE, and met production requirements.
2. The system's interface is consistent with that of CFFE with perfect compatibility, supports multiple versions of trading systems including Kingstar, Hang Seng, etc; and both direct and indirect ordering modes. And it has the features of high functionality, high reliability, and audit-ability, and has no packet loss rate in indirect ordering to ensure the stable operation for customer trading.
3. The system can simultaneously accommodate 200 trading members, two millions of customers, and one million of round lots; meanwhile, it takes real-time communications mechanism and advanced encryption technology to ensure system security.
V. Application Procedure
1. Customers contact their local ICBC Business Offices, and two parties reach cooperative intent, and the customers sign intent cooperative agreements with ICBC Head Office.
2. Two parties sign confidential agreement, ICBC branches stand for ICBC to sign the agreement with customers, and the agreement will be in quadruplicate.
3. The Institutional Department of ICBC Branch Offices assists the customers to open network connection, and the customers can choose the direct connection with CFFE or with ICBC Data Center.
4. After network connection has been completed, two parties offer testing time, contact persons, contact phone numbers, and set up the tests after discussions, to conduct simulation trading tests with ICBC Financial Futures Centers.
5. The formal business cooperation agreement will singed by two parties upon the completion of testing, and the system will be in online production.