The operation system of CFFEX absorbs advanced domestic and overseas designing concept to construct a highly efficient financial futures information system.
For the first time in China, CFFEX's communication system connects the networks of both securities and futures houses. It also adopts high capacity and high efficiency SDH network to construct a reliable communication system to guarantee the prompt and reliable information communication to all over the country.
The trading system of CFFEX adopts such technology as matching in main memory, message boss, and hot standby etc to make its capacity, performance, and reliability all reach the leading position in the world.
While constructing a high efficiency and high capacity clearing system, CFFEX provides its members advanced “participant service system” to enable them to open accounts for clients and wire money simultaneously, and distribute clearing reports. These services help to provide reliable channels for non-floor all electronic long distance trading and clearing. They also guarantee the clearing information to be sent to the clearing members in a fast and accurate way.
Following the principle of higher starting point and higher standard, CFFEX draws on advanced overseas experience in trading and clearing and combines it with domestic practice to construct China's financial derivative market.
CFFEX provides an electronic market with no floor traders. All the trades of financial futures products are conducted via CFFEX's computer system and are automatically matched and executed by CFFEX's trading system according to the principles of price priority and time priority.
CFFEX implies the multi-tiered clearing system which is very popular in overseas markets. This system divides members into different tiers in accordance with their tolerance to risks. Members in different tiers have different business scope which enables to construct a multi-tiered risk control system to hedge risks efficiently and to improve CFFEX's overall capability against risks.
CFFEX's members include trading members, trading and clearing members, general clearing members, and special clearing members. Among them, trading and clearing members, general clearing members, and special clearing members are clearing members that can conduct clearing business directly with the exchange. Trading and clearing members are only eligible to trade and conduct clearing and settlement business for themselves. General clearing members can trade and conduct clearing and settlement business for themselves as well as non-clearing members who have agreement with them. Special clearing members can clear and conduct settlement for non-clearing members that have agreement with them. Trading members can engage in proprietary or brokerage business but are not allowed to do the clearing with the exchange directly.