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Notice on the Optimization of the Foreign Exchange Conversion Mechanism for Overseas Clients and Overseas Brokers Concerning Daily Settlement of Trades in Specified Domestic Futures Products

To all members,

To further facilitate the engagement of overseas clients and overseas brokers in trades of specified domestic futures products (SDFPs), the foreign exchange (FX) conversion mechanism for the daily settlement of such trades has been optimized. The related matters are hereby notified as follows:

I. Optimized Procedures

The fourth Monday of each month (postponed to the next trading day if it falls on a public holiday) will be a cut-off date for FX conversion concerning the daily settlement of SDFPs trades of overseas clients and overseas brokers, and during the intervening period, the net profit or loss of overseas clients and overseas brokers will be calculated on an accumulative basis to determine the eligible amount for conversion. If the current day is not a cut-off date, and the eligible amount for conversion is above zero, the overseas client or overseas broker may apply to its carrying member for FX purchase, subject to the eligible amount for conversion, and the member should complete such purchase on its behalf; if the current day is a cut-off date, the member should complete all FX settlement and purchase for overseas clients and overseas brokers in accordance with eligible amount for conversion.

II. Scope of Application

This optimization should apply only to FX purchase in daily settlement process. The FX operations of due to insufficient RMB balance, FX conversion for delivery payment, and Exchange-forced FX settlement should remain unchanged.

III. Implementation Schedule

During the transition period from January 1, 2021 to February 28, 2021, members may choose either the current or the optimized mechanism to conduct FX conversion. From March 1, 2021, all members should conduct FX conversion pursuant to the optimized mechanism. All members should complete the upgrade of their system on time to be ready for providing related services.

 

Appendix: Guideline for Foreign Exchange Conversion by Members

                                   Zhengzhou Commodity Exchange

January 13 , 2021

 

 

Disclaimer: This English version may be used for reference only. If there is any discrepancy between the English version and the Chinese version, the Chinese version shall prevail.

 

 Appendix.docx

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