fortheSettlementandPurchaseof ForeignExchangeforMembers (December2020) ThisGuidelineispreparedinordancewiththerulesoftheStateAdministrationofForeignExchangeandtheClearingRulesoftheShanghaiInternationalEnergyExchangeandotherrelevantbusinessrules,forthepurposeofregulatingthesettlementandpurchaseofforeignexchangeconcerningthetradingofSpecifiedDomesticFuturesProducts(“SDFPs”)oftheShanghaiInternationalEnergyExchange(the“INE”). ordingtoarticle7oftheCircularoftheStateAdministrationofForeignExchangeonForeignExchangeAdministrationforOverseasTradersandBrokersEngaginginFuturesTradingunderSpecificDomesticCategories(Huifa[2015]No.35),theforeignexchangesettlementandpurchaseshallonlyinvolvethesettlementofprofitorlossfromfuturestrading,paymentofservicefees,settlementofphysicaldelivery,aswellassettlementtoeliminatetheshortfallinthesettlementcurrency,whichareassociatedwiththetradingofspecifieddomesticfuturesproducts.
I.Terminologies
1.Eligibleamountforconversion:Anamount,displayedinthesettlementcurrency,automaticallygeneratedbytheMembersidesystembasedontheactualresultsofSDFPtradingofanoverseasClient,OverseasIntermediary,orOverseasSpecialParticipant(hereinafterreferredtoasthe“OverseasClearingDeliveryPrincipal”)whohasauthorizedaMemberforclearing. 2.profitorlossonSDFP=Current-dayprofitorlossonSDFP1–Current-daytransactionfeesforSDFP2+Current-dayoptionpremiumpaidorreceivedonSDFP.
3.Current-dayprofitorlossonSDFP=Preceding-dayprofitorlossonSDFP+profitorlossonSDFP–Current-dayotherexpendituresforSDFP3–Current-dayforeignexchangepurchaseamount4. 1Includingprofitsandlossesfromopenandclosed-outpositionsonthecurrentday,etc.2Includingtransactionfeesfortrading,delivery,EFP,standardwarranttransfers,andoptionsexercise/performance,feesforthepledgeofsecurities,etc.3Includingload-indeposit,etc.4TotalamountofFXpurchasedfortheOverseasClearingDeliveryPrincipal,asconductedafterthedailyclearingontheprecedingtradingdayandbeforemarketcloseonthecurrentday. 1/6 Boththe“preceding-dayprofitorlossonSDFP”andthe“current-dayforeignexchangepurchaseamount”aretakentobezeroifanyofthefollowingappliestotheprecedingtradingday: i)Itwasthecut-offdateforconversion;or ii)TheprofitorlossonSDFPwasbelowzero(negative);or iii)Theprofitcurrencywaschangedafterthedailyclearing.
4.RMBbalance:ThebalancemaintainedbyanOverseasClearingDeliveryPrincipalinRMB. Current-dayRMBbalance=Preceding-dayRMBbalance+profitorlossonSDFP–Current-dayfundswithdrawals5+Current-dayfundsdeposits.
5.Cut-offdateforconversion:ThefourthMondayofeachmonth(postponedtothenexttradingdayifitfallsonapublicholiday).Beforemarketcloseofthenexttradingdayfollowingthecut-offdateforconversion,aMemberpletetheforeignexchange(“FX”)settlementandpurchaseforallitsOverseasClearingDeliveryPrincipalsasapplicableinordancewiththeeligibleamountforconversionrespectively. II.BasicPrinciples (I)Settlementcurrency:RMB.ForeignexchangemargincanbeusedforsettlementonlyafteritisconvertedintoRMB. (II)Profitcurrency:AnOverseasClearingDeliveryPrincipalmaychooseRMBorUSDastheprofitcurrency,whichshouldbespecifiedinthewrittenagreementwiththecarryingMember.Oncedetermined,theprofitcurrencycannotbemodifieduntil6monthslater. (III)TypesofFXconversion:Conversionfordailyclearing,conversionfordeliverypayment,andforcedFXsettlementbyINE. (IV)Eligibleamountforconversion:AdailyfigureautomaticallygeneratedbytheMembersidesystematdailyclearingfortheapplicableOverseasClearingDeliveryPrincipalbasedontheactualresultsofitscurrent-daytradingofSDFPs.Thecurrent-dayeligibleamountforconversionoftwoormoreOverseasClearingDeliveryPrincipalsshallnotted. Oncegenerated,thecurrent-dayeligibleamountforconversionshallnotbealtered. 5Includingcurrent-dayotherexpendituresforSDFP. 2/6 (V)FXconversion:AMemberpletetheconversionbeforetheprescribedcut-offtime.Theconversionmustbecarriedout(i)throughaDesignatedDepositoryBankqualifiedformargindepositoryforoverseasClients,and(ii)throughtheMember’sdedicatedRMBmarginountanddedicatedforeign-exchangemarginount. III.FXConversionforDailyClearing (I)Overview AMembermayusethefollowingtabletodeterminewhetheritneedspleteaFXpurchaseorsettlementforanOverseasClearingDeliveryPrincipal: RMBBalanceon DayT CumulativeNetProfitorLossonSDFP onDayT ProfitCurrency RMB ≥
0 ≥
0 USD <
0 — <
0 — — IsDayTtheCut-OffDate forconversion?
—Yes No — — IsvalidapplicationreceivedfromtheOverseasClearingDeliveryPrincipalbefore11:30a.m.onDayT+1forFX purchase?
—— Received Notreceived— — DoestheMemberneedtoconductthe conversionbefore3:00p.m.onDayT+1?
No YesforFXpurchase YesforFXpurchase No No YesforFXsettlement,orcallfordepositofadditionalRMBtoeliminatetheshortfall (II)Cut-offdateforconversion Ifthecurrentdayisthecut-offdateforconversion,theMemberpleteFXsettlementandpurchaseforallitsOverseasClearingDeliveryPrincipalsasapplicable,ordingtotheeligibleamountforconversionasofthecurrentday,throughDesignatedDepositoryBanksbefore3:00p.m.onthefollowingtradingday.Theprofitorlosswillberesettozeroandrueddailystartingfromthetradingdayfollowingthecut-offdateforconversion. (III)Tradingdaysotherthanthecut-offdateforconversion
1.Whentheeligibleamountforconversionisgreaterthan0 Before11:30a.m.onthenexttradingday,anOverseasClearingDeliveryPrincipalwhohaschosenUSDastheprofitcurrencymay,atitsowndiscretion,applytoitscarryingMemberforpurchaseofFXwithinthelimitoftheeligibleamountfor 3/6 conversion.Ifavalidapplicationisreceived,theMemberpletethepurchasethroughaDesignatedDepositoryBankbefore3:00p.m.
2.Whentheeligibleamountforconversionislessthan0 InthisscenariotheeligibleamountforconversionequalstotheRMBbalance,whichmeansthereisashortfallinthesettlementcurrency.TheMembermayrequiretheOverseasClearingDeliveryPrincipaltodepositadditionalRMBfunds,pletethesettlementofFXbefore3:00p.m.onthenexttradingdaytoeliminatetheshortfall. (IV)Bank-futuresFXconversion AMembermayinquirethereal-timeexchangeratesofferedbyDesignatedDepositoryBanksthroughtheelectronicbank-futuresFXportalsand,basedontheavailablebalanceinitsdedicatedmarginountsandotherrelevantfactors,choosethebank(s)fortheconversionbysubmittingthebank-futuresFXapplication(s). FXapplicationscanbeclassifiedintoapplicationforFXsettlementandapplicationforFXpurchase.EachapplicationmaycontaindetailsofconversionforoneormoreOverseasClearingDeliveryPrincipals.FXapplicationsforoverseasindividualClientsandoverseasinstitutionalClientsshallbesubmittedseparately. MembersshallprovideDesignatedDepositoryBankswiththedocumentofFXsettlementandpurchase(Appendix1)asrequiredontime,soastosufficepliancereviewbythebanksandtofacilitatetherelevantdeclarationrequirements. (V)Datasubmission Thecut-offtimeforFXconversiondatatobesubmittedtotheChinaFuturesMarketMonitoringCenter(the“CFMMC”)is5:00p.m.eachtradingday.DataforFXconversionspletedbyDesignatedDepositoryBanksbefore5:00p.m.shallbesubmittedonthesameday,whereasdataforFXpletedafter5:00p.m.shallbesubmittedonthefollowingtradingday. IV.FXconversionforDeliveryPayment PhysicaldeliveryinrelationtotheSDFPslistedonINEincludestandarddelivery,EFP,andstandardwarranttransfer. (I)FXsettlementforthebuyer AnoverseasinstitutionasbuyermayexecutedeliverypaymentinUSD.ItscarryingMembershallconductFXsettlementthroughaDesignatedDepositoryBankbeforesendingthedeliverypaymenttoINEinRMB. TheoverseasinstitutionmaydecidetheamountofFXsettlementatitsdiscretion,providedthatitdoesnotexceedtheamountofthedeliverypaymenttomake. 4/6 ThecarryingMemberpletetheFXsettlementandthetransferofdeliverypaymentinRMBtoINEbefore2:00p.m.onthedeliverysettlementday. (II)FXpurchasefortheseller AnoverseasinstitutionassellermaychoosetoreceivedeliverypaymentineitherRMBorUSD.IfUSDischosen,itscarryingMembershallconductFXpurchasethroughaDesignatedDepositoryBankbeforetransferringthefundtotheoverseasinstitution. AnoverseasinstitutionmaydecidetheamountofFXpurchaseatitsdiscretion,providedthatitdoesnotexceedtheamountofthedeliverypaymenttoreceive. ThecarryingMemberpletetheFXpurchasebeforemarketcloseonthetradingdayfollowingthedeliverysettlementday. (III)DocumentofFXsettlementandpurchase ThesupportingdocumentforFXsettlementandpurchasefordeliverypaymentisthedeliverysettlementstatementorstandardwarranttransferstatementgeneratedbyINE’sStandardWarrantManagementSystem.MembersshallprovideDesignatedDepositoryBankswiththerelevantstatementsasrequiredontime,soastosufficepliancereviewbythebanksandtofacilitatetherelevantdeclarationrequirements.
V.ForcedFXsettlementbyINE PleaserefertoArticle42oftheINEClearingRules. VI.SupervisionandAdministration MembersarerequiredtoproperlyretainbusinessrecordsanddataforrelevantinspectionbytheExchangeorregulatoryauthorities.AnyirregularityshallbepromptlyreportedtotheExchange. OverseasClearingDeliveryPrincipals,Members,andDesignatedDepositoryBanksshallconductFXsettlementandpurchaseordingtotheactualresultsoftheSDFPtrading.Theyarealsorequiredtoeffectivelystrengthenpliancemanagementandshallnotinvolveinanyviolationofforeignexchangeregulations. (TheEnglishtranslationofthisGuidelineisforreferenceonly.IntheeventofanyinconsistencybetweentheChineseversionandEnglishtranslation,theChineseversionshallprevail.) 5/6 Appendix1 DocumentofForeignExchangeSettlementandPurchase
(1) DateofMemberMemberClientSettlementIDNameID
(2) ClientType
(3)
(4) ProfitCurrency FXSettlement/Purchase Precedingday profitorlosson SDFP Currentdayprofitorlosson SDFP Currentdayfees forSDFP Currentday optionpremiumpaidorreceivedonSDFP Current-dayother expendituresforSDFP
(5) Currentdaytotal FXamount Currentday profitorlosson SDFP Currentday eligibleamount forconversion USDbalance RMBbalance
(6)DateofTimeofRemarkrecordrecord
(1)“MemberID”:referstotheuniquecodeassignedtotheMemberbyCFMMC.
(2)“Clienttype”:0–individual;1–institution.
(3)“Profitcurrency”:CNY–Renminbi;USD–
U.S.dollar.
(4)“FXSettlement/Purchase”:0–FXsettlement;1–FXpurchase.
(5)“Current-daytotalamountofconversion”:referstothetotalamountofpletedfortheOverseasClearingDeliveryPrincipal,asconductedafterthedailysettlementontheprecedingtradingdayandbefore3:00p.m.onthecurrentday.PositivevaluemeansFXpurchase,negativevaluemeansFXsettlement.
(6)“Remark”:fornotingsuchthingsasthecurrentdaybeingthecut-offdateforconversion,orthecurrent-dayprofitorlossoftheOverseasClearingDeliveryPrincipalbeingnegative,etc. 6/6