Clearing Member System

trading clearing members for proprietary trading and brokerage business to handle the clearing and settlement business. Full clearing member proprietary trading, brokerage and non-clearing members, futures business (brokerage and proprietary trading) to handle the clearing and settlement business, a good large-scale futures firms, mainly by credit. Special Clearing Member does not have a broker qualifications, only a non-clearing members for clearing by commercial bank branches play. The latest exposure draft on futures companies to apply for financial futures settlement business qualifications of administrative licensing matters from the registered capital and net capital assessment, as well as controlling shareholder of strength provides for the qualifications of the futures company to apply for settlement business, hoping to establish a pyramid trading settlement Membership structure.

3, counterparty risk requirements, certain customer or counterparty is unable to fulfill the contract requirements, leaving the clearing members facing capital requirements.

conducive to safeguard national financial security, and deepening the reform of the financial capital

the introduction of the clearing members of the system, stock index futures, fluctuations, and the intermediaries involved in the settlement business requirements are higher, and can increase the ability to withstand systemic risk through the settlement guarantee fund system, maintaining the market stability, improve investor confidence.

in gold learn from international experience of mature markets, clearing members are divided into the trading clearing members, the General Clearing Member and the special settlement member of the three species, the formation of a "pyramid" shape.

, daily price changes will give traders the risk of the normal operation of the futures market rely on the system running to defuse risk, market risk diversification by constructing a "pyramid" type of settlement system, to protect the futures market in its run, not systemic risk events.

pyramid trading clearing members the benefits of the system

Eurex Clearing is conducted through its wholly-owned subsidiary Clearing AG.

As of June 2005, Eurex's total membership of 459, including 64 full clearing member, 69 direct clearing members, and the remaining 326 are non-clearing members. Eurex trading members and clearing members access conditions very different low conditions of trading members, clearing member's request.

in China to establish the "pyramid" type of transaction clearing member system

the approval of the membership in different types of membership for different conditions little will make the right and obligations of reciprocity, the inputs and outputs balance. For example, the non-clearing members and trading clearing members of the registered capital requirement difference of only 20 million yuan (futures minimum registered capital requirement of 30 million yuan), but non-clearing members no settlement authority, must be settled through a comprehensive clearing members and to pay a settlement fee. Non-clearing members for clearing their customers, but also need the appropriate equipment and personnel costs, and also has represented clients in risk is responsible. However, revenue point of view, non-clearing members must be part of their fee income transfer to the clearing members and trading clearing members can get all of its fee income.

the U.S. Commodity Futures Trading Commission (CFTC) regulations, clearing members should meet the Futures Commission Merchant should meet the financial criteria for futures brokers to adjust minimum net capital should be greater than a certain percentage of the separate account funds, this is mainly because the futures commission merchant charged the customer margin is somewhat analogous to bank deposits.

in accordance with the principles of classification settled, Eurex only its clearing members for clearing, the clearing members of the exchange settlement, its self, agents, and non-clearing members of the second settlement. Eurex members from the non-clearing members, direct clearing members and the full clearing member. Direct clearing members only for the transaction of their own name (including a wholly owned subsidiary of the non-clearing members) for the settlement, the General Clearing Member can be settled for any non-clearing members (regardless of whether the affiliation).

Hong Kong Futures Exchange Clearing System

First, the transaction gains and losses among members daily settlement and margin system and the daily settlement system to resolve the risk of the exchange; members through its affiliates has represented clients and secondary agent, to carry out daily settlement to resolve the Member risk; futures companies be settled directly to the customer, so that the deposit system and the daily settlement system, layers of settlement from the exchange to the final customer, market risk layers to resolve.

clearing members of the system is that not all members of the Exchanges can automatically obtain the settlement eligibility, only those financial strength, strong risk management capabilities institutions in order to become the exchange's clearing members, non-clearing members of stock index futures clearing system by clearing members.

Secondly, this system is a system of layers secured, the level of a settlement agent settlement units the risk to bear 100% responsibility, rather than pass again on the level of a settlement. This is the core content of the futures market risk management.

futures broker with liabilities to customers, the greater the liabilities to customers, when the futures broker bankruptcy, the greater the damage to the customer's. In addition, there is no additional requirements for clearing members. CFTC also indicates that the settlement center may require the clearing members in order to prevent the clearing member's default risk, settlement guarantee fund must be paid to the settlement center.

futures company is to connect investors and Exchange bridge. The specification of the operation of the futures company or not and whether profits World Pipe network informed, have an important impact on the healthy development of the futures market. Stock index futures fluctuated, the intermediaries involved in the settlement business is demanding, and can increase the ability to withstand systemic risk stratification settlement, to maintain market stability, improve investor confidence. At the same time, the clearing member in order to keep its clearing membership, non-clearing member in order to fight for clearing members, to strengthen management, regulate the conduct of operations, improve operational efficiency, control of business risks, thus promoting the sound development of the industry as a whole.

clearing members not only to achieve high financial requirements, but also according to their volume of business to the Stock Exchange clearing department to pay a certain amount of the settlement guarantee fund. as a bulwark against the clearing members (including other clearing members) appear settlement default risk barrier.

clearing member system is commonly used system of international futures markets, which together with the deposit system, the financial security system for the futures exchange to effectively control and defuse the risks system. World's two largest futures exchanges - the Chicago Board of Trade (CBOT) and Chicago Mercantile Exchange (CME) are the implementation of the clearing member system. CBOT members are divided into the clearing members and non-clearing members, non-clearing members to be settled through the Clearing Member. CME is all members are clearing members of CME in-house with the Settlement Department. China's Hong Kong Futures Exchange Clearing Member is divided into sole clearing members and clearing members. At present, the domestic three commodity futures exchanges to the implementation of full clearing member system.

The main drawback of the pyramid "system of trading clearing members

5, is conducive to the positioning of the futures company and guide the futures company bigger and stronger, promote the optimization of the industry

clearing members, to be divided into: general clearing member (well-capitalized organization and a sound system, and credible, in accordance with regulations to pay the clearing members of the large brokerage firms); clearing member of this household (less capital transactions providers); general clearing member (some capital and risk tolerance required to pay for clearing members, brokerage firms); non-clearing member (less capital of brokerage firms, not entitled to liquidation, direct liquidation on its behalf by the General Member liquidation)

2, there is help protect the futures market does not appear in its run systemic risk events

conducive Exchange risk diversification, and strengthen the Exchange's overall ability to resist risks

the path of development of China's futures industry is very tortuous, many companies have been hovering at a loss the edge of the industry market capacity is limited, a single business, a large number of companies, no difference, homogenization, low level of competition is very intense, bigger and stronger futures company's goal has not made substantial progress. "Pyramid" type of transaction settlement system, to establish the strength of the futures company, the establishment of multi-level futures intermediary system is conducive to the market positioning of each futures company, standardize their operations, but also to guide the part of the strength of the futures company bigger and stronger opportunity. In this regard, to go by the securities industry in the past few years, industry consolidation and optimization, supporting the superior and eliminating the inferior policy-oriented and good results worthy of the futures industry to learn from.

clearing members of the United Kingdom system

based on the successful experience of international futures industry, the establishment of a "pyramid" hierarchical settlement system is decentralized exchange risk, and strengthen the Exchange's overall ability to resist risks to promote the development of effective measures of Exchange. The futures market is a high-risk markets, risk stratification to resolve effectively dispersed. Clearing members undertake the settlement of non-clearing members and customers and manage their risk, encounter of default, Exchange first investigated the responsibility of the clearing members. If the non-clearing member default, clearing members must first take responsibility for non-clearing members, and then held the responsibility of the parties, so that the risk to be dispersed. Even a link in the chain, the problem affects only one company, without affecting the normal operation of the entire futures market, the risks borne by the Exchange Control, and is conducive to the normal operation and growth of the Exchange.

foreign futures clearing members of the system introduced

the introduction of special clearing members not only contribute to our financial futures markets, the establishment of hierarchical formation of settlement systems, and promote financial The construction of the futures market, but also to safeguard national financial security and to deepen the reform of financial capital needs. If the futures brokerage firm stock index futures as a non-clearing member agency customers, based on intra-industry competition concerns may be more willing to choose the special clearing members as their clearing agency. Therefore, the establishment of special clearing members can be avoided with the industry vicious competition.

basic needs, mainly In order to ensure that the company has sufficient working capital, the company reduced income or no income, to maintain the normal operation of the company.

4, is conducive to maintaining market stability, improve investor confidence

clearing members of the U.S. system

Hong Kong futures market consists of five parts: the traders, brokerage firms, exchanges, clearing houses and guarantee company, the stratification of the market structure of the Hong Kong Futures market risk control measures.

futures trading subsidiary of the Hong Kong Futures Exchange Clearing Corporation assume liquidation of futures exchanges between members. Member of the Futures Exchange in order to have the liquidation qualifications must apply to become a clearing member of the Hong Kong Clearing Corporation.

trading position risk requirements, which is the price of adverse changes in the company's trading position World steel pipe network editing , capital requirements. Trading position risk requirements in terms of the futures and options transactions, initial margin requirements in futures and options trading.

1, is conducive to the establishment of multi-level risk management system

In short, China's futures market is relatively mature futures market is a high risk industry, management and resolution of market risk is particularly important. In the current commodity futures markets, the member regardless of their size, strength, strong or weak, along with the trading and clearing membership. This billing system has the potential to individual members of default risk caused to pass directly to the exchange, the local risk of evolving into the systemic risk of the entire market. "Pyramid" type of settlement system according to the size of the membership strength of layered settlement, can effectively prevent the proliferation of local futures market risk to the entire market risk and to protect the smooth running of the Futures Exchange, the futures market. As with everything else, this system also has its inadequacies, but more good than harm.

, non-clearing members because there is no settlement eligibility will affect their company's reputation and image, as well as attractive to customers, especially high-quality customers. Therefore, the majority of futures companies will be inclined to become a clearing member, so that the "pyramid" type of risk control system may lose the foundation, the risk of a "firewall" may be difficult to play an effective role, full clearing member will also lose the meaning of existence.

Eurex Clearing System

UK Securities Investment Board (SIB) requires clearing members of the financial criteria should meet the following requirements:

settlement
What is a clearing member system

choose what kind of membership system is not a subjective imagination. but by the futures market as a whole system. The international futures market operation system performance for the layers of risk diversification, layers of settlement. Tiered settlement system, clearing members of the trading members and trading members are not necessarily the clearing members. Only the financial strength, experienced management agencies in order to become clearing members, trading members do not have the clearing membership must be settled through the clearing members, to form a multi-level risk management system, many local risk in the clearing member level be resolved.