On November 22, Industrial Bank (IB) obtained the qualification for futures security depository business of China Financial Futures Exchange (hereinafter referred to as “CFFEX”), becoming one of the first group of joint-stock commercial banks designated by the CFFEX for futures security depository business. IB will also take this opportunity to further improve and extend the business areas in the financial market.
Futures security depository refers to a financial business that after obtaining the qualification for depository business, a bank establishes settlement account and handles the transfer of futures security for future exchanges, futures companies and other players in the futures market. At present, the scale of futures security exceeds RMB 200 billion in China.
It is natural for IB to obtain the qualification for futures security depository business this time. It is reported that as early as 2006, IB has established the working group of futures business, starting to make preparation for futures security depository business. In 2009, it set up the Futures Finance Department officially, which is responsible for the specialized management, marketing service, and planning and coordination of relevant banking businesses of the futures market including futures settlement, futures security depository, and futures market financing. Over years, IB has kept serving the futures market in a steadfast manner and made active preparations in many aspects such as organizational arrangement, reserves of futures professionals and team building, construction of specialized bank-futures technical system, and establishment of business rules and regulations, thus winning full recognition of the CFFEX.
After becoming a depository bank of futures security, the relevant officer in charge of the Futures Finance Department of IB indicates, the bank will conscientiously perform its responsibilities as a depository bank, guarantee the safety of futures securities of the exchange and all market players, ensure the stability of technical system, sufficiency of capital flow, and provide other banking services according to the needs of the exchange in the process of business development and innovation so as to carry out all-round cooperation with the exchange.
The officer also indicates that IB will carry out in-depth cooperation with futures companies in the following three areas in the future. The cooperation at the first layer is about funds, mainly for depositing funds owned by futures companies and funds of futures customers. The cooperation at the second layer is about assets and assets management, for providing products of futures assets management with such services regarding capital, agency sale, and custody, and providing financial support for risk management subsidiaries of futures companies in the area of bank financing. The cooperation at the third layer is about advantageous resources of both parties, mainly for sharing customer resources, joint development and maintenance, sharing professional resources and business outlets.
As learnt by the reporter, in order to provide secure and convenient transfer-out/in services for investors and futures companies, IB has developed and put into operation leading technical systems for futures security depository such as national centralized bank-futures transfer system and electric transfer platform for futures exchanges. The combination of IB's bank-futures transfer system and all-bank centralized financial system achieves head-to-head connection and real-time arrival of bank-futures transfer across the entire bank; supports the transactions initiated in two ways by the bank and future companies, thus facilitating the operation of customers; supports the initiating channels via various banking terminals and terminals of futures companies, including counters, network, mobile phone, telephone, and other trading channels of both parties; allows customers to finish bank-futures transfer transactions in a non-local and real-time manner, thus fully meet the needs of customers for fast and convenient transfer of futures security.
Meanwhile, through the “futures-securities pass” business offered by the bank, direct fund transfer between securities funds account and futures funds account can be realized, which will greatly facilitate investors who participate in both the securities market and futures market for inter-market funds allocation.