When entering the market, the exchange must be responsible for the credit status of its members; Non-member customers must trade through member agents, and members are trading agents.
The subject is fully responsible for the transactions it represents, so members must control the financial risks of all customers. If the customer defaults,
If there is any loss or failure to perform the liability for compensation, the member must perform the liability for compensation on his behalf and reserve the right of recourse.
Corresponding to the multi-level organizational structure of the futures market, the settlement management system is also hierarchical. The first is the interest of exchange clearing institutions in member companies.
The division of settlement, which is the first level of settlement; Secondly, member brokerage companies settle accounts with customers, which is called secondary settlement. Finally,
Match the risk classification of each transaction with each market participant.
First, the concept of futures settlement
Generally speaking, futures trading is settled by the settlement department of the exchange or an independent settlement institution, and the transaction is reached within the exchange.
It's easy, and it can only be finally achieved after being handled by a settlement institution, and it can also be guaranteed by funds, so futures settlement is the most basic of futures trading.
One of the characteristics.
1. The concept of futures trading settlement
Settlement means that the settlement institution or settlement company of the exchange calculates the trading gains and losses of members and customers, and takes the calculation results as receipts and payments.
The basis of simple margin or additional margin. Therefore, settlement refers to all aspects of the futures trading market, including exchanges.
Member settlement also includes the calculation of trading profits and losses by member brokerage companies on behalf of customers, and the calculation results will be recorded in customers.
In the household's savings account.
2. Settlement method of futures trading
In the futures market, there are three ways to complete futures trading: hedging liquidation, physical delivery and cash delivery. Correspondingly, there are three.
This kind of settlement method.
A hedge liquidation: refers to the most important settlement method of futures trading, and most contracts in futures trading are carried out in this way.
Knot a knot.
Settlement result: profit and loss = (selling price-buying price) * contract number * contract unit-handling fee.
Or = (buying price-selling price) * contract quantity * contract unit-handling fee
Physical delivery
In futures trading, although the physical delivery is very few, accounting for only 1-3% of the total number of contracts, it is precisely because
In futures trading, buyers and sellers can make physical delivery, which ensures that the futures price truly reflects the actual spot of the traded goods.
Price makes it possible for hedgers to participate in futures trading. Therefore, physical delivery is very important.
Settlement result: the seller will deliver the bill of lading and sales invoice to the buyer through the settlement department or settlement company of the exchange, and collect all the payment at the same time.
Payment.
cash settlement
Only a small number of futures contracts are settled in cash at maturity, rather than in kind.
Two. Futures market settlement system
1. Hierarchical settlement management system
Settlement between exchange and members
B. Settlement between member brokerage firms and non-member brokerage firms
Settlement between brokerage company and customers.
2. Futures trading settlement process
Matching with the settlement system, the settlement process of futures trading is divided into the first-level settlement between the clearing institution of the exchange and members and member brokerage companies.
Secondary settlement with customers (or non-member brokerage companies).
Three. Settlement of futures exchange
The clearing institution of the futures exchange is an important part of the futures market.
It exists in two ways, namely, an independent clearing house and the settlement department of the exchange. Its main function is to ensure the normal operation of the futures market
The integrity of the market. The settlement department of the exchange is a subsidiary of the commodity futures exchange and the executive body of the exchange settlement system. It is responsible for settlement.
All member units' trading accounts, liquidate daily transactions, collect trading deposits (performance bonds) and additional deposits, and manage and supervise them.
Cut and report transaction data.
The role of the clearing department of the futures exchange:
Calculate the profit and loss of futures trading
After the futures trader completes the transaction, all the transaction information is summarized to the settlement department of the exchange, and the settlement department enters it on the basis of checking.
Bank settlement, calculating the profit and loss of each member, reflected in the member's margin account. The daily debt-free settlement system is adopted for transaction settlement.
Degree, the day's trading results on the day of liquidation.
B as a counterparty and guarantee the performance of the transaction.
The settlement department of the exchange plays the role of a third party for all futures contract traders, that is, the settlement department is the buyer for each seller member.
But for every buyer member, it is a seller. For the settlement department of the exchange itself, its daily profit and loss are balanced, so the transaction is like this.
They only have business relations with the settlement department of the exchange, and the buyers and sellers of futures trading do not bear financial responsibilities for each other, but only settle accounts with the exchange.
The Ministry has the responsibility.
Because futures buyers and sellers can buy and sell contracts at will regardless of whether the counterparty performs the contract, they can trade as the third party of the counterparty.
The clearing institution takes full responsibility to ensure that each transaction is carried out as scheduled, thus simplifying the settlement procedures, promoting transactions and improving delivery.
Easy and efficient.
Manage member funds and control market risks.
The clearing institution of the exchange manages the basic margin and trading margin of all members to ensure that all futures transactions are fulfilled and the guarantee period is guaranteed.
The soundness and financial integrity of commodity markets. The settlement institutions of various exchanges shall implement strict settlement margin and daily debt-free settlement system. transmit
E-Exchange has set a minimum margin standard, and member companies or their customers must pay the minimum margin to the clearing institution of the exchange when settling the contract.
Kim. At the same time, in order to ensure the interests of member brokerage companies, the margin charged by brokerage companies to customers is generally higher than that charged by exchanges to members.
Deposit level. In this way, a series of strict systems and procedures have been established to ensure the normal operation of the futures market and prevent huge losses.
Chaos between emptiness and clearness.
After several big storms in China futures market, all exchanges have realized that they should strengthen the settlement system and management monitoring.
This is the key to control the risk of futures trading.
Supervise the physical delivery of futures trading.
Generally speaking, the exchange is not responsible for the whole process of actual commodity delivery, but only formulates delivery rules for buyers and sellers who need spot delivery, and is responsible for
For account transfer, in futures trading, all contracts must be closed by hedging or physical delivery.