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Guide to the Application, Change and Cancellation of Dedicated Margin Accounts
2010-03-05

I. Dedicated Margin Account

The Futures Margin Account opened by a Clearing Member with the Depository Bank at where China Financial Futures Exchange (the “Exchange”) is domiciled is referred to as the Dedicated Margin Account. The transfer of funds between the Exchange and a Clearing Member related to futures trading on the Exchange shall be conducted between the Dedicated Settlement Account of the Exchange and the Dedicated Margin Account of the Clearing Member.

A Clearing Member may choose one or more Designated Depository Banks to open Dedicated Margin Account(s) based on its business needs.

II. Account Application

1. A Clearing Member shall submit an application for Dedicated Margin Account through the “Member-Dedicated Margin Account” section on the CFFEX Participant Service Platform. 

2. Upon review and approval of such application, the Clearing Department of the Exchange issues a “Notice on the Management of Clearing Member Dedicated Margin Accounts” (the “Notice”) to the Clearing Member.

3. The Clearing Member may open one or more Dedicated Margin Accounts with the relevant Depository Bank(s) in accordance with the Notice, and arrange with the Depository Bank(s) on an activation date of the account(s). (In case of multiple Depository Banks, all the banks shall activate the accounts on the same date.) 

4. A Depository Bank opens the Dedicated Margin Account for the Clearing Member in accordance with the Notice, and returns the Notice receipt to the Clearing Department of the Exchange.

5. The Clearing Department of the Exchange handles relevant account settings according to the receipt. As of the account activation date, the Clearing Member may use the newly opened Dedicated Margin Account to handle fund transfers with the Exchange. 

Ⅲ. Account Change

1. Change of Account Name

(1) A Clearing Member may, in accordance with the procedure of member name change, submit an application for changing the name of its Dedicated Margin Account(s) through the CFFEX Participant Service Platform.

(2) Upon review and approval of such application, the Clearing Department of the Exchange issues a “Notice on the Management of Clearing Member Dedicated Margin Accounts” (the “Notice”) to the Clearing Member.

(3) The Clearing Member may change its account name with the relevant Depository Bank(s) in accordance with the Notice, and arrange with the Depository Bank(s) on an effective date of the new account name. (In case of multiple Depository Banks, all the banks shall activate the new account name on the same date.)

(4) A Depository Bank changes the name of the Clearing Member’s Dedicated Margin Account in accordance with the Notice, and returns the receipt to the Clearing Department of the Exchange.

(5) The Clearing Department of the Exchange handles relevant account settings according to the receipt. 

2. Change to Designated Margin Call Account

(1) A Clearing Member may submit an application for changing its Designated Margin Call Account through the “Member-Dedicated Margin Account” section on the CFFEX Participant Service Platform.

(2) The Clearing Department of the Exchange handles relevant account settings upon review and approval of such application.

Ⅳ. Account Cancellation

1. A Clearing Member may submit an application for cancellation of its Dedicated Margin Account(s) through the “Member-Dedicated Margin Account” section on the CFFEX Participant Service Platform.

2. Upon review and approval of such application, the Clearing Department of the Exchange issues a “Notice on the Management of Clearing Member Dedicated Margin Accounts” (the “Notice”) to the Clearing Member.

3. The Clearing Member may cancel its Dedicated Margin Account(s) with the relevant Depository Bank(s) in accordance with the Notice.

4. A Depository Bank handles the account cancellation in accordance with the Notice, and returns the Notice receipt to the Clearing Department of the Exchange.

5. The Clearing Department of the Exchange handles relevant account settings according to the bank receipt.