.jpg)
On July 12, Dalian Commodity Exchange (DCE) issued a notice on rolling out position transfer business for clients starting from July 29, 2022 to further improve its market service and better meet clients’ position management needs. On the same day, DCE also released an announcement to amend the Measures for Clearing Management of Dalian Commodity Exchange. The introduction of the position transfer business fills the domestic gap in this field, making it easy for clients to transfer their positions between different members.
According to the said notice and announcement, the same client under different futures company members or overseas special brokerage participants, as well as institutional clients, non-futures company members, and overseas special non-brokerage participants involving actual control relationship can apply for position transfer. In particular, clients and overseas special non-brokerage participants can apply through a futures company member while non-futures company members can apply by themselves. DCE will arrange the examination and approval on the day of receiving the application. The position transfer can be processed on the same day after the application is approved. For the time being, DCE will not charge clients for position transfer commissions.
It should be noted that, in case of transferring positions between the accounts with the actual control relationship, non-futures company members and overseas special non-brokerage participants can only transfer their positions outward rather than inward. This is mainly due to the fact that non-futures company members and overseas special non-brokerage participants lack capital risk management capabilities as opposed to futures company members and are more likely to cause capital risks if they are allowed to accept inward position transfer. In addition, the individual clients under the actual control relationship account group are not allowed to transfer position for the time being so as to effectively control risks in terms of delivery, capital, and taxation, etc.
There has always been needs for position transfer in the market. With the launching of this business, DCE can implement the position transfer for the clients when needed. This can help improve clients’ capital use efficiency and overall operation efficiency, creating a more friendly environment for industrial clients to participate in the futures market.
According to an executive of DCE, the launching of position transfer business for clients is one more important measure that DCE has taken to meet the market demand and practice the call to make dedicated efforts to deliver services to the people. As for the next step, DCE will continue to improve the position transfer business for clients based on market feedback.
Disclaimer: This English translation may be used for reference only. In cases there is any discrepancy between the English version and the original Chinese version, the original Chinese version shall prevail. Dalian Commodity Exchange may change or update this English translation without any prior notice and shall accept no responsibility or liability for damage or loss caused by any error, inaccuracy, misunderstanding, or change with regard to this English translation.
