"Third-party depository" is a business provided by commercial banks, which is often used in securities, futures, real estate and other trading activities. Taking the third-party depository in securities trading as an example, it means that according to the requirements of laws and regulations, the depository bank is entrusted to take charge of the deposit and withdrawal of customers' funds and the delivery of funds, and the securities trading operation remains unchanged. Securities trading settlement funds of clients of securities companies shall be deposited by banks.
This business follows the principle of "securities firms manage securities and banks manage funds", and strictly separates investors' securities accounts from securities margin accounts. Under the third-party depository mode, securities brokerage companies no longer provide customers with access services for transaction settlement funds, but are only responsible for customer securities transactions, share management and clearing and settlement. Depository banks are responsible for managing customers' transaction settlement fund management accounts and customers' transaction settlement fund summary accounts, providing customers with transaction settlement fund access services and providing settlement support for securities brokerage companies to complete enterprise fund settlement with registered settlement companies and foreign exchange recipients. The bank is responsible for completing the transfer of clearing funds between the investor's special deposit account and the brokerage bank settlement account, and handing over the brokerage clearing and settlement procedures to the bank, which will complete them on its behalf.
Securities companies that implement the third-party depository system will no longer contact customers' deposits, but the depository bank will be responsible for investor transaction clearing and fund delivery. According to shanghai securities news, the reason why the securities industry introduced the third-party depository system is mainly to fundamentally prevent brokers from misappropriating clients' deposits. Relevant statistics show that the problem of misappropriation of margin by brokers has been repeatedly banned.
The implementation of the third-party depository system can ensure that customers' depository will not be misappropriated by securities firms, because this system effectively establishes a wall between securities companies and their customers' transaction settlement funds. Specifically, after the implementation of the third-party depository system, customers can open accounts at depository bank outlets or securities company business outlets, generate customer depository accounts in the depository bank system, and generate customer numbers in the securities company system. Following the principle of "brokers manage securities and banks manage funds", securities companies are responsible for the securities trading and share management of customers, and calculate the trading price difference of customers according to the trading settlement data of registered companies; The Bank is responsible for the transfer of investors' margin accounts, cash deposit and withdrawal and other related businesses.
The implementation of the third-party depository system will basically not affect the existing trading habits of investors. The only difference in opening an account in a securities company that implements the third-party depository system is that funds can only be accessed through banks. This is similar to the "Bank-Securities Link" business launched by many securities companies at present.
Advantages of third-party hosting
1. Funds are more assured: in the past, customers' deposits were deposited by a securities company, and misappropriation often occurred. The customer's transaction settlement funds are uniformly deposited by the third-party depository bank, and the customer's margin is guaranteed by the dual credit of commercial banks and brokers, so as to ensure the payment of the customer's funds, and the customer's capital security can be guaranteed and more assured;
2. Access is more worry-free: customers can not only complete the transfer through the original way of brokers, but also complete the deposit and withdrawal of funds and the transfer between bank accounts and margin accounts through bank counters, telephone banking and online banking;
3. More intimate service: customers become common customers of brokers and banks, and can not only continue to enjoy the investment and financial services provided by the original brokers, but also enjoy various comprehensive financial services of banks.
4. As the deposit is kept by commercial banks, it is convenient for the state to supervise the illegal funds entering the securities market.
To sum up, after implementing the third-party depository system, there are many benefits.