Current location - Trademark Inquiry Complete Network - Futures platform - What are the relevant provisions of the compulsory liquidation system?
What are the relevant provisions of the compulsory liquidation system?
What are the relevant provisions of the compulsory liquidation system?

The compulsory liquidation system is an important measure to control risks in the futures market, and investors should pay attention to the risk of compulsory liquidation in futures trading. The provisions of the compulsory liquidation system are divided into the following three levels:

(1) The main provisions of the Regulations on the Administration of Futures Trading on the compulsory liquidation system

Article 38 of the Regulations on the Administration of Futures Trading stipulates that "when the customer's margin is insufficient, it shall add the margin in time or close the position on its own. If the customer fails to add the margin in time or liquidate the position by himself within the time specified by the futures company, the futures company shall forcibly liquidate the contract of the customer, and the relevant expenses and losses arising from the forced liquidation shall be borne by the customer. "

(2) The main provisions on the compulsory liquidation system in the Measures for the Administration of Risk Control of CICC.

Compulsory liquidation refers to the compulsory measures taken by the exchange to liquidate the positions of members and customers in accordance with relevant regulations. In any of the following circumstances, the exchange will force the liquidation.

A. The balance of settlement reserve of settlement members is less than zero, and it has not been replenished before the end of the first section;

B. Customers and trading members engaged in proprietary business hold positions exceeding the position limit standard and fail to close their positions before the end of the first section;

C. Forced liquidation by the Exchange due to violation of rules and regulations;

D. According to the emergency measures of the Exchange, the liquidation shall be forced;

E. other circumstances in which the exchange requires compulsory liquidation.

(three) the main provisions of the futures brokerage contract on forced liquidation

There are generally two clauses on risk control in futures brokerage contracts of futures companies, which are the concrete embodiment and implementation of the compulsory liquidation system at the level of futures companies. Taking the futures brokerage contract of a futures company as an example, the contents of these two clauses are as follows (Party B refers to the investor and Party A refers to the futures company):

A. When the customer risk rate of Party B's asset account (position margin occupation/customer equity based on the standard margin ratio of futures companies) is greater than 100%, Party B shall increase the margin or reduce the position by itself before the opening of the next trading day until the available funds are greater than zero, otherwise, Party A has the right to forcibly liquidate the positions in Party B's asset account in part or in whole; Party B shall bear the consequences arising therefrom.

B. When the foreign exchange risk rate of Party B's asset account (position margin occupation/customer's equity based on foreign exchange margin ratio standard) is greater than 100% due to large market fluctuation, Party A has the right to close some or all positions of Party B's asset account at any time without notifying Party B; Party B shall bear the consequences arising therefrom.