Settlement institution of the exchange: the exchange has a settlement department, which is responsible for the unified settlement, margin management, risk reserve management and settlement risk prevention of the futures trading of the exchange. All contracts reached in the exchange trading system must be uniformly settled by the settlement department.
Settlement bank: the bank designated by the exchange to assist the exchange in the settlement of futures transactions. The settlement banks designated by Zhengzhou Commodity Exchange include Bank of Communications, China Industrial and Commercial Bank, China Construction Bank, China Bank and China Agricultural Bank.
Wheat futures
Operation and management of trading funds
The Exchange opens a special settlement account in the settlement bank, and members open a special fund account in the settlement bank. The settlement of futures business funds between the exchange and its members shall be transferred between the special settlement account of the exchange and the special fund account of the members through the electronic fund management system or the settlement counter. The Exchange implements separate account management and closed operation for members and funds deposited in special accounts for investors.
Driven by technological innovation, in order to improve service quality and operational efficiency and ensure the safety of funds, more and more members have signed agreements with local securities regulatory bureaus and settlement banks to implement closed margin operation.
Settlement process of wheat futures trading
The exchange implements a daily debt-free settlement system. Daily debt-free settlement (also known as daily mark-to-market) refers to the exchange's settlement of the profits and losses and trading deposits of all contracts at the settlement price of the day after the daily trading, and the collection of fees and other fees, and the transfer of accounts receivable and payable, thus increasing or decreasing the settlement reserve of members accordingly.
After daily settlement, the Exchange provides settlement statements to members through the member service system. According to the settlement results, members settle accounts with investors.
1. The Exchange transfers the profit and loss of the day at the daily settlement, and the profit of the day is included in the member settlement reserve, while the loss of the day is deducted from the member settlement reserve. The part of the trading margin at the time of settlement that exceeds the trading margin at the time of settlement shall be deducted from the settlement reserve of the member. The part of the trading margin at the time of settlement that is lower than the trading margin at the time of settlement shall be included in the member's settlement reserve. Fees and other expenses are deducted from the member's settlement reserve.
2. After settlement, if the balance of the member's settlement reserve is negative, the settlement result shall be regarded as the additional margin notice issued by the Exchange to the member. After issuing the notice of additional margin, the Exchange may deduct it from the member's special fund account through the settlement bank. The special fund account for members is insufficient and must be replenished before the market opens on the next trading day. The Exchange may settle accounts in the course of trading according to market risks and changes in margin, and issue a notice of additional margin, and members shall make up the margin within the time specified in the notice. If it fails to make up for it on time, the exchange may force it to close its position according to relevant regulations.
If a member disagrees with the settlement data, it shall notify the Exchange in writing within 30 minutes before the market opens the next day. In case of special circumstances, members may notify the Exchange in writing within 2 hours after the opening of the market the next day. If the member does not raise any objection to the settlement data within the specified time, it shall be deemed that the member has recognized the correctness of the settlement data.