In fact, no matter what level of settlement, you need to do three things:
(1) Transaction processing and position management, that is, after trading every day, it is necessary to register what transactions have been made and how many positions have been held.
(2) Settlement management refers to the daily settlement of fund items such as profit and loss, margin and expenses of positions and transactions. As far as clearing members are concerned, at the time of settlement on the same day, the part of the trading margin in the clearing member's account that exceeds the trading margin at the time of settlement on the previous trading day is deducted from the settlement reserve, and the part that is lower than the trading margin at the time of settlement on the previous trading day is included in the settlement reserve; The profit of the day is included in the settlement reserve, and the loss is deducted from the settlement reserve; The expenses of the day are deducted from the settlement reserve.
(3) Risk management: calculate the deposit for the settlement object and evaluate the risk. Take clearing members as an example. When the balance of the settlement reserve of the settlement member after daily settlement is lower than the minimum balance standard, the settlement result shall be regarded as the notice of additional margin issued by CICC to the settlement member, and the difference between them shall be the amount of additional margin.
Clearing members must make up the balance of the minimum settlement reserve before the market opens on the next trading day; If the payment is not made within the time limit, the account shall not be opened or handled in accordance with the provisions of the Measures for the Administration of Risk Control of China Financial Futures Exchange.