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Clearing Process
Trading Period
The trading hours is from 8:45 to 13:45 Monday
through Friday. The trade matching system will transmit
the most updated transaction data to the Clearing
Department which will in turn transmit such data to
clearing members for their back office operations.
Post-Trading Period
The system will activate
the daily mark-to-market calculations on 14:30 Monday
through Friday. A settlement price will be determined
for each contract at the end of the market hours,
which will be transmitted from the trade matching
system to the clearing system and serve as a basis
for margin calculations. After the daily mark-to-market
calculation, the clearing system will disseminate
the relevant position data to the clearing members
for their back office operations. After the trade
confirmation, clients with insufficient margins have
to post additional margin in their accounts to meet
the margin requirements.
The settlement banks will receive from the Clearing
Department a list of the clients who are required
to post additional margins in their margin accounts
and will in turn transmit the results of the margin
transfer back to the Clearing Department.
| 1. |
Clearing members post margin for
each open position before trading. |
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| 2. |
During trading hours, the Clearing Department
of the TAIFEX checks clearing member s' positions
and margin. |
| 3. |
If the amount of the margin is inadequate, the
Clearing Department of the TAIFEX will notify
both the settlement banks and the clearing members. |
| 4. |
The clearing member posts required margins into
its account in the settlement bank and informs
the TAIFEX by fax. |
| 5. |
The ETS closes at 13:45, Monday through Friday. |
| 6. |
The Clearing Department calculates required
margin of all the open positions. |
| 7. |
At 15:30, margin deposit deadline. |
| 8. |
The Clearing Department prepares reports and
transmits margin requirement data to the settlement
bank. |
| 9. |
The settlement bank debits clearing member's
account and transmits data back to the Clearing
Department. |
| 10 |
The Clearing Department prepares daily reports
and delivers to the clearing members. |
Margining
Margining is a disciplinary tool that feeds
down from the Clearing Department to the clearing
members, and from the clearing members to their clients.
Clearing members must assume responsibility for the
margin requirements set for both their client account
and their proprietary account.
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