DCE will promote landing of projects in 2014 on the basis of the “1+6 mode” of banking-futures cooperation.
In order to deepen the level and promote the further launching of banking-futures cooperation, Dalian Commodity Exchange (DCE) held a symposium on boosting banking-futures cooperation in Dalian on March 19, which summarized the settlement of depository banks in 2013 and the development of banking-futures cooperation and exchanging views on relevant key work items in 2014. Attending the symposium were heads of futures business departments of head offices of 11 national business banks, including the existing 9 depository banks of DCE, and heads of branches and sub-branches of these banks.
At the symposium, an official of DCE exchanged views on the development of innovative businesses of banking-futures cooperation and futures settlement business. He said that banking-futures cooperation was a key innovative work promoted by DCE in 2013 on the basis of the margin deposit business. The official said that in 2013, DCE has, by taking the chance of the expansion of the qualification for the margin deposit business, boosted banking-futures cooperation through multiple channels, created among domestic exchanges an array of long-term systems of admittance of banks and yearly assessment with “banking-futures cooperation” as the core index, and explored and put forward boldly the “1+6 mode” of banking-futures cooperation, which achieved initial results. This mode expanded innovative work items in 6 aspects on the basis of the margin deposit business of banks, namely, promoting banks to exert their edges on industry client and co-launch market cultivation; actively propelling the research and development of futures-supported wealth management products and the launching of the assets management business; co-optimizing the warehouse-receipt-pledge financing business; promoting the project of query of factory warehouse letters of guarantee and reducing the delivery risks. DCE has signed agreements on query of performance guarantee letters with 4 banks and carried out 7 guarantee letter query business lines; signing strategic cooperation agreements with banks to ensure smooth banking-futures cooperation in the long run; and establishing periodical information exchange system with banks. The above-mentioned work items, upon joint efforts from DCE and banks, have achieved initial results. In 2014, the two sides will promote the landing of projects by continuously taking serving real economy as the core and banking-futures cooperation schemes with each bank as fundamentals. In addition, DCE will facilitate banks to expand more business lines on the market service platform of DCE, boost the Dalian futures market to optimize the investor structure by making full use of banks’ edges on channels, networks. and clients, and meanwhile further deepen traditional cooperation items.
In terms of the margin deposit business in banks, in 2013, DCE released and carried out the Measures on Management of Designated Depository Banks, which firstly regulated relevant business lines of depository banks comprehensively and systematically within the rule system of DCE, and it formulated the Regulation on Business Management of Margin Depository Banks, which standardized depository banks in terms of futures settlement business, system guarantee, banking-futures business innovation and others, and specified methods of examination and assessment; DCE also approved 6 commercial banks for the qualification for the futures margin depository business, which broke the situation of only 5 depository banks in the past decade; and DCE put forward the “1+6” banking-futures cooperation mode to fuel the banking-futures cooperation.
As for work items in 2014, the official of DCE said that concerning the work items concerning depository banks, DCE and banks would make full preparations for continuous trading; DCE would promote banking-futures cooperation, and cement the cooperation with banks in industry client development, product innovation, warehouse-receipt-supported financing, warehouse supervision, and other aspects; DCE would improve capital usage efficiency, innovate the management system on collaterals, explore more channels for market capital, and establish and complete a collateral management system compatible with industrial clients and institutional clients, and create better conditions for investment by industry clients, and assets management accounts including securities companies, funds companies, insurance companies, and trust companies; in order to adapt to the development of the multi-level capital market, DCE would research to build a relatively independent clearance service platform and explore to provide clearance service for regional markets and off-floor markets; DCE would strengthen compliance training for as well as supervision and inspection on member units, investors, delivery warehouses, and margins depository banks, in a bid to promote standardized market operation. An official of DCE also explained the Regulation on Business Management of Margin Depository Banks revised by DCE, and reported on the futures settlement work and assessment work of depository banks in 2013.
An official of DCE said that, under the backdrop of intensified competition in the future capital market, bank are expected to cultivate clients, explore new innovative service system together with DCE, strengthen bilateral cooperation and enhance the two sides’ level and ability of serving the real economy.
Representatives of banks present at the symposium sang highly of DCE for its efforts on the banking-futures cooperation and the innovative work it launched, and compared notes on the development of the futures industry and banking industry, and the prospect for their cooperation in light of the rapid growth of the finance market. The representatives of banks said that as competition in the capital market is aggravating, innovation is of great importance for both banking and the futures industry. The banks would explore in developing and cultivating clients, lowering service cost, and enhancing service efficiency, and further propel the innovative modes of banking-futures cooperation. In addition, the banks would, by taking their advantages of abundant industry clients and developed service networks, explore more direct and more efficient channels for popularization of hedging knowledge and skills and promotion of futures wealth management products, with an aim to co-facilitate the development of the general financial platform.