2. Futures trading settlement is organized by the futures exchange. Futures exchanges implement a debt-free settlement system on the same day, also known as "marking the market day by day". It means that after the daily trading, the exchange will settle the profit and loss, trading margin, handling fees, taxes and other expenses of all contracts according to the settlement price of the day, and transfer accounts receivable and accounts payable at the same time, thus increasing or decreasing the settlement reserve of members accordingly.
When the members of the futures exchange have insufficient margin, they shall add margin in time or close their positions on their own.
The so-called price limit system, also known as the daily maximum price fluctuation limit, means that the trading price fluctuation of futures contracts in a trading day should not be higher or lower than the prescribed price limit, and the quotation exceeding the price limit will be regarded as invalid and cannot be traded. The price limit is generally determined according to the settlement price of the previous trading day of the contract.
3. The position limit system refers to the maximum speculative position that a member or customer can hold in a contract, which is stipulated by the exchange and calculated unilaterally. The purpose of implementing the position limit system is to prevent the manipulation of market prices and prevent the futures market risks from being too concentrated on a few investors.
4. The large-scale declaration system is another system closely related to the position limit system to prevent large-scale households from manipulating market prices and controlling market risks. By implementing the large account reporting system, the exchange can focus on monitoring the members or investors who hold large positions and understand their positions trends and intentions, which has a positive effect on effectively preventing market risks.
It refers to the process that when the contract expires, according to the rules and procedures of the futures exchange, both parties to the transaction settle the cash difference through the transfer of ownership of the subject matter contained in the contract, or settle the contract at the agreed settlement price. The delivery of ownership transfer of the subject matter is physical delivery, and the delivery of cash price difference settlement is cash delivery. Generally speaking, commodity futures are mainly delivered in kind, while financial futures are mainly delivered in cash.
5. The compulsory liquidation system refers to the compulsory measures taken by the exchange to liquidate relevant positions when members and investors violate the rules. The compulsory liquidation system is also one of the means for the exchange to control risks.
The main provision of the compulsory liquidation system in China's futures exchange is that when the balance of the member's settlement reserve is less than zero, it cannot be replenished within the prescribed time limit.
6. The risk reserve system refers to the system that provides financial guarantee and compensates losses caused by unforeseen risks in order to maintain the normal operation of the futures market.
7. Information disclosure system refers to the system in which futures exchanges regularly publish information related to futures trading according to relevant regulations. The information released by the futures exchange mainly includes the futures trading quotations of all listed varieties, various statistics of futures trading data, various announcement information issued by the exchange and other relevant information formulated and disclosed by the China Securities Regulatory Commission.
Response time: 2021-12-01. Please refer to the latest business changes announced by Ping An Bank in official website.