Futures trading rules require trading participants to go through the formalities of opening trading accounts before deciding to participate in trading. To buy or sell one (or more) futures contracts, a basic process must be completed, that is, placing an order, reviewing the order, declaring the order, trading and returning.
Because futures trading must be concentrated in the exchange, only members of the exchange, including futures brokerage companies and self-operated members, can operate transactions in the exchange. Before entering the futures market, ordinary investors should first choose members of futures brokerage companies with legal agency qualifications, good reputation, safe funds, standardized operation and reasonable fees. Self-employed members have no agency qualification.
After comparison and judgment, investors can choose a futures brokerage company, and then they can apply to the futures brokerage company for entrustment and open an account. Opening an account is essentially a legal relationship between investors (clients) and futures brokerage companies (agents).
Generally speaking, the procedures and required documents for members of futures brokerage companies to open accounts for customers are different, but the basic procedures and methods are basically the same.
(1) risk disclosure
Customers who entrust a futures brokerage company to engage in futures trading must register with the futures brokerage company in advance.
When accepting an application for opening an account for passengers and goods, a futures brokerage company shall provide the customer with a Letter of Disclosure of Futures Trading Risks. Individual customers should sign the Futures Trading Risk Statement after reading and understanding it carefully; After the customer carefully reads and understands, the legal representative of the unit will sign and affix the official seal of the unit.
(2) Signing a contract
When a futures brokerage company accepts a customer's application for opening an account, both parties shall sign a futures brokerage contract. Individual customers should sign contracts, and corporate customers should sign contracts and build official seals.
When opening an account, an individual should provide his/her ID card and keep his/her seal or signature sample card. When an entity opens an account, it shall provide a copy of the business license of the enterprise as a legal person, and provide written materials such as the name, telephone number and seal of the entity and its legal representative or person in charge, and the written authorization of the legal representative to authorize the executor of futures trading business.
The exchange implements the system of registration and filing of customer transaction codes. When a customer opens an account, the futures brokerage company shall carry out numbering in accordance with the uniform coding rules of the Exchange, with one code for each household, and the special code shall be used exclusively, and mixed code transactions shall not be allowed. When a futures brokerage company cancels its customer transaction code, it shall file with the Exchange.
(3) Payment of security deposit
After signing a futures brokerage contract with a futures brokerage company, the customer shall pay the deposit for opening an account in accordance with the regulations. The futures brokerage company shall deposit the margin paid by the customer into the customer account agreed in the futures brokerage contract for the customer to conduct futures trading. The margin charged by the futures brokerage company to the customer belongs to the customer; Except in accordance with the provisions of the China Securities Regulatory Commission, futures brokerage companies are strictly forbidden to use the deposits deposited by customers in futures exchanges for transaction settlement.
Attachment: Guidelines on Futures Brokerage Contracts [Click] for details; & gt& gt]