Circular of China Securities Regulatory Commission and the Ministry of Finance on Promulgating the Measures for the Administration of Securities Settlement Risk Funds
Circular of China Securities Regulatory Commission and the Ministry of Finance on Promulgating the Measures for the Administration of Securities Settlement Risk Funds
Circular of China Securities Regulatory Commission and the Ministry of Finance on Promulgating the Measures for the Administration of Securities Settlement Risk Funds
Zheng Jian Fa [2006] No. 65
June 16, 2006
Shanghai, Shenzhen Stock Exchanges, China Securities Depository and Clearing Corporation Limited and various settlement participants,
According to the Securities Law of the People's Republic of China, the Measures for the Administration of Securities Settlement Risk Funds are hereby jointly promulgated by China Securities Regulatory Commission and the Ministry of Finance, which are now issued for implementation.
Appendix:
Measures for the Administration of Securities Settlement Risk Funds
Article 1 In order to prevent and mitigate securities market risks, safeguard the secure operation of securities depository and clearing system, properly administer and use security settlement risk funds, these measures are hereby formulated according to the relevant provisions of the Securities Law of the People's Republic of China.
Article 2 Security settlement risk funds herein (hereinafter referred to as the Funds) mean the special funds set up to be advanced or make up for the losses to the securities depository and clearing agencies due to delivery and settlement in breach of contracts, technical failure, operation errors or force majeure.
Article 3 Sources of the Funds:
(1) Drawn at 20% of the business income and revenues of securities depository and clearing agencies; and
(2) For settlement participants, daily payment at 0.003% of the trading amount of Renminbi-denominated ordinary shares and funds, 0.001% of the spot trading amount of treasury bonds, 0.00005% of the repo trading amount of 1-day treasury bonds, 0.0001% of the repo trading amount of 2-day treasury bonds, 0.00015% of the repo trading amount of 3-day treasury bonds, 0.0002% of the repo trading amount of 4-day treasury bonds, 0.0005% of the repo trading amount of 7-day treasury bonds, 0.001% of the repo trading amount of 14-day treasury bonds, 0.002% of the repo trading amount of 28-day treasury bonds, 0.006% of the repo trading amount of 91-day treasury bonds, and 0.012% of the repo trading amount of 182-day treasury bonds.
Article 4 When a fiscal year ends, if the net assets of the Funds reach or exceed RMB3 billion, no fund will be drawn according to the provisions of the paragraph (1) of Article 3 herein for the next fiscal year, and settlement participants will not pay it according to the provisions of paragraph (2) of Article 3 herein, provided that each settlement participant shall pay such fund according to paragraph (1) of Article 3 herein for no less than one year after joining the settlement system.
Article 5 When a fiscal year ends, if the net assets of the Funds are less than RMB3 billion, fund shall be drawn according to the provisions of paragraph (1) of Article 3 herein for the next fiscal year, and the settlement participants shall keep paying such fund according to the provisions of paragraph (2) of Article 3 herein.
Article 6 China Securities Regulatory Commission and the Ministry of Finance may jointly and properly adjust the size of the Funds, the way for drawing and payment of fund and the proportion thereof according to the situation of market risks.
Article 7 Securities depository and clearing agencies shall designate proper agencies to take charge of the routine administration and use of the Funds.
Article 8 The Funds shall be fully deposited at state-owned commercial banks in the form of special accounts, and the interests on the deposit shall be fully transferred into the special accounts of the Funds.
Article 9 The assets of the funds shall be separated from the assets of the securities depository and clearing agencies.
......
Zheng Jian Fa [2006] No. 65
June 16, 2006
Shanghai, Shenzhen Stock Exchanges, China Securities Depository and Clearing Corporation Limited and various settlement participants,
According to the Securities Law of the People's Republic of China, the Measures for the Administration of Securities Settlement Risk Funds are hereby jointly promulgated by China Securities Regulatory Commission and the Ministry of Finance, which are now issued for implementation.
Appendix:
Measures for the Administration of Securities Settlement Risk Funds
Article 1 In order to prevent and mitigate securities market risks, safeguard the secure operation of securities depository and clearing system, properly administer and use security settlement risk funds, these measures are hereby formulated according to the relevant provisions of the Securities Law of the People's Republic of China.
Article 2 Security settlement risk funds herein (hereinafter referred to as the Funds) mean the special funds set up to be advanced or make up for the losses to the securities depository and clearing agencies due to delivery and settlement in breach of contracts, technical failure, operation errors or force majeure.
Article 3 Sources of the Funds:
(1) Drawn at 20% of the business income and revenues of securities depository and clearing agencies; and
(2) For settlement participants, daily payment at 0.003% of the trading amount of Renminbi-denominated ordinary shares and funds, 0.001% of the spot trading amount of treasury bonds, 0.00005% of the repo trading amount of 1-day treasury bonds, 0.0001% of the repo trading amount of 2-day treasury bonds, 0.00015% of the repo trading amount of 3-day treasury bonds, 0.0002% of the repo trading amount of 4-day treasury bonds, 0.0005% of the repo trading amount of 7-day treasury bonds, 0.001% of the repo trading amount of 14-day treasury bonds, 0.002% of the repo trading amount of 28-day treasury bonds, 0.006% of the repo trading amount of 91-day treasury bonds, and 0.012% of the repo trading amount of 182-day treasury bonds.
Article 4 When a fiscal year ends, if the net assets of the Funds reach or exceed RMB3 billion, no fund will be drawn according to the provisions of the paragraph (1) of Article 3 herein for the next fiscal year, and settlement participants will not pay it according to the provisions of paragraph (2) of Article 3 herein, provided that each settlement participant shall pay such fund according to paragraph (1) of Article 3 herein for no less than one year after joining the settlement system.
Article 5 When a fiscal year ends, if the net assets of the Funds are less than RMB3 billion, fund shall be drawn according to the provisions of paragraph (1) of Article 3 herein for the next fiscal year, and the settlement participants shall keep paying such fund according to the provisions of paragraph (2) of Article 3 herein.
Article 6 China Securities Regulatory Commission and the Ministry of Finance may jointly and properly adjust the size of the Funds, the way for drawing and payment of fund and the proportion thereof according to the situation of market risks.
Article 7 Securities depository and clearing agencies shall designate proper agencies to take charge of the routine administration and use of the Funds.
Article 8 The Funds shall be fully deposited at state-owned commercial banks in the form of special accounts, and the interests on the deposit shall be fully transferred into the special accounts of the Funds.
Article 9 The assets of the funds shall be separated from the assets of the securities depository and clearing agencies.
......