Notice on Management of Warrant Trading Qualifications and Clearing Qualifications
http://www.sina.com.cn 17:34, August 1, 2007 Sina Finance
Notice on Management of Warrant Trading Qualifications and Clearing Qualifications
All member companies and clearing participants:
In accordance with the relevant provisions of the Interim Measures of Shanghai Stock Exchange for the Administration of Warrants and the Detailed Rules of China Securities Depository and Clearing Corporation Limited for the Implementation of the Registration and Clearing Business of Listed Warrants in Shanghai Stock Exchange (hereinafter referred to as the "Detailed Rules of Clearing"), we hereby notify the following of the relevant matters in the administration of warrant trading qualifications and clearing qualifications.
1、 Shanghai Stock Exchange (hereinafter referred to as "SSE") and China Securities Depository and Clearing Corporation Limited (hereinafter referred to as "CSDCC") respectively implement the management of trading qualification and clearing qualification for warrant business. The member companies and clearing participants who have been recognized by SSE and CSDCC and have obtained both warrant trading qualification and clearing qualification can engage in warrant proprietary or brokerage business, Unless otherwise specified by SSE or CSDCC.
Member companies and clearing participants that have not obtained both warrant trading qualification and clearing qualification can only exercise or sell warrants in proprietary or brokerage business. If a clearing participant that has obtained the warrant trading qualification but has not obtained the clearing qualification selects a clearing participant that meets the access requirements to act as its clearing business agent in accordance with Article 50 of the Detailed Rules for Clearing, it may purchase warrants in its proprietary or brokerage business.
2、 For member companies and clearing participants who violate the clearing rules, cannot normally perform the delivery responsibility, or the collateral for the delivery spread is insufficient, CSDCC will suspend their clearing qualification for warrant purchase transactions from the next trading day and request the SSE to restrict their purchase of warrants in proprietary or brokerage business from the next trading day. This purchase restriction measure shall be notified to relevant settlement participants by CSDCC.
For clearing participants whose clearing qualification for warrant purchase transaction is restricted due to insufficient collateral for price difference, CSDCC will resume its clearing qualification for warrant purchase transaction from the next trading day after making up for the collateral for price difference between settlement and receipt and there is no settlement overdraft; The clearing participant whose clearing qualification for warrant purchase transaction is restricted due to its inability to normally perform the settlement responsibility shall recover its clearing qualification for warrant purchase transaction after making up for the settlement overdraft and after CSDCC considers that it is capable of continuous settlement. According to the request of CSDCC, SSE will cancel the buying restrictions on its proprietary or brokerage business from the next trading day. The cancellation of the purchase restriction measures shall be notified to the relevant settlement participants by CSDCC.
3、 SSE may directly suspend the warrant trading qualification of member companies and their clients who violate laws, regulations, administrative rules or relevant business rules.
4、 After the member company and the clearing participant are suspended from the clearing qualification of warrant purchase transaction or restricted from the clearing qualification of warrant transaction, they shall explain the reason to their customers in a timely manner and bear the legal consequences caused by the suspension of trading qualification and clearing qualification.
5、 See the external website of CSDCC for details of the list of warrant trading qualification obtained by SSE and the warrant clearing participant qualification obtained by CSDCC at the same time.
It is hereby notified.
Shanghai negotiable securities exchange
China Securities Depository and Clearing Corporation Limited
August 19, 2005
List of relevant qualifications for warrant business
Sina statement: The content of this article is purely the author's personal view, only for investors' reference, and does not constitute investment advice. Investors operate accordingly at their own risk.
