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What Are the Basic Procedures for EFP Transactions on Chinese Government Bond Futures?
2019-09-02

The basic procedures for an EFP transaction on Chinese government bond futures include three stages: (1) the EFP negotiation stage in which the parties thereto reach agreement on the EFP transaction through negotiation; (2) the EFP reporting stage in which the seller of the futures contract enters the EFP information into the Exchange’s system for confirmation by the buyer of the futures contract and sends such information to their respective carrying members for risk control examination; and (3) the EFP confirmation stage in which CFFEX opens and closes out positions for the parties, freezes the margin for new open positions, and releases the margin for the liquidated positions according to the quantity of the futures contract traded by the parties as agreed after the EFP transaction becomes effective upon being confirmed by CFFEX.