Draft Measures for the Administration of Securities Settlement Risk Fund Open for Public Comments, Improving Regulations Related to the Scale of the Risk Fund.

On May 9th, the China Securities Regulatory Commission, in conjunction with the Ministry of Finance, drafted the "Measures for the Administration of Securities Settlement Risk Fund (Revised Draft for Soliciting Opinions)", which is now open for public comments. The opinions propose to improve the relevant provisions of the risk fund size. It is specified that the total net assets of the risk fund shall not be less than 3 billion yuan. Once the fund reaches or exceeds this scale, the securities registration and settlement institutions will no longer withdraw funds, and settlement participants who have contributed to the fund for a full year will no longer be required to make further contributions. For risk funds with a size below 3 billion yuan, extraction or contribution will resume from the next year. New dynamic evaluation clauses have been added, requiring securities registration and settlement institutions to regularly evaluate and demonstrate the required size of the fund and report to the CSRC and the Ministry of Finance. The opinions also propose to adjust the contribution ratio based on the corresponding settlement risks of various types of businesses, implementing differential adjustments to the contribution ratio of the risk fund. The settlement participant's equity and fixed income securities trading contribution ratio is reduced to one-third of the original standard, while the contribution ratio for repurchase agreements remains unchanged. This article is excerpted from the official website of the China Securities Regulatory Commission; GMTEight Editor: Li Foo.