Business Innovation in the Long Run

2007-8-21

China Securities Journal, Wang Chao

    Since February 2006 representing commercial banks joining the preparation team for China Financial Futures Exchange (CFFE) to prepare for stock index futures, CMBC has achieved multiple No.1 in the industry through meticulous preparations and active innovations. 

　　Two facility innovations get recognition

On this “CMBC Seminar on Stock Index Futures Clearing and Risk Control”, what the participants most recognize are two CMBC facilities: “CMBC Banking-Futures Shuttle” and “Golden Key for Futures Clearing”.

　　“CMBC Banking-Futures Shuttle” establishes fast, convenient, safe and reliable funding channels between futures companies and banks as well as futures and securities companies, connecting a client’s bank account to his or her deposit account at a futures company and capital account at a securities company. Through this “CMBC Banking-Futures Shuttle”, the futures investors can transfer between bank accounts and futures account as well as between securities and futures through telephone banking, online banking, and bank counters. When this facility first appeared on the “Second (Shenzhen) International Futures Convention” in December 2006, it immediately reaped attention and praises from inside the industry. 

　　Mr. Wu Yuanzhen, executive chairman of Jin Peng Futures believed that “CMBC Banking-Futures Shuttle”, with its multiple features such as “national focus, zero funds in transit”, “institutional transfer first supported in China”, “Banking-Futures-Securities Mutually Integrated, One-Stop Transfer” etc, provides the investors with swift, practical and quality services, enabling CMBC and the futures companies to form close partnership who can benefit each other and develop together.

    Under the layered architecture for financial futures clearing, the “Golden Key for Futures Clearing”, a special clearing membership system developed by CMBC, establishes a safe efficient trading and clearing channel between the futures exchange and the non-clearing members. Through “Golden Key for Futures Clearing”, CMBC can provide the trading members with trading order routing, transaction return transfer, member risk control and management, financial clearing and settlement and other services. This system enables the special clearing facility of CMBC to have created many firsts in the domestic financial market, such as the first planned special clearing membership facility, the first completed system development, the first accessed to China Financial Futures Exchange (CFFE) for combined commissioning and testing, the first passed the overall system interface adaptability and pressure testing of CFFE, the first supporting both direct and indirect ordering etc. Currently among the members participating into the simulated transaction of CFFE, over 75% carry out simulated testing through CMBC, which also proves the maturity of this system.  

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