To take part in the settlement, members have to obtain the qualification of settlement from the specified settlement organization in line with regulations, after which members need to open a settlement account at the settlement organization.
I. Funds settlement account
The settlement funds indicate the deposit reservation for balance, so the funds settlement account is also known as the account of deposit reservation for balance. No interest is incurred to the funds within the account.
II. The settlement organization sets the lowest deposit reservation for balance (hereinafter referred to as "lowest deposit reservation”) for the funds settlement account.
1. Definition of lowest deposit reservation: the lowest deposit reservation indicates the lower limit of the deposit reservation set by the settlement organization for the funds settlement account. Members shall reserve such amount of fund in the account at least. The lowest deposit reservation can be used for completing the settlement and delivery, but cannot be transferred. If they are used for settlement and delivery, they must be supplemented on the next day.
2. Adjustment of lowest deposit reservation: the settlement organization shall determine the ratio of the lowest deposit reservation for each member every month according to the risk degree of each member, and shall determine the lower limit of the deposit reservation of each member according to their transaction volume of the last month and the ratio of the lowest deposit reservation. (Purchased amount ×20%; or 20% of the investment amount of the customer)
3. Insufficient lowest deposit reservation: members shall check the balance in the funds settlement account every day. In case of insufficient balance, the member shall stop transactions and supplement funds immediately.
4. After the member doesn’t have any corresponding transaction seat and has settled all the obligations and liabilities with the settlement organization, the member can apply for the termination of the settlement business and the revocation of the settlement account to the settlement organization.
III. Line of credit
According to the corresponding business volume authorized by the funds of the settlement account, members will stop the transaction authority automatically in case of insufficient fund, until the transaction funds are supplemented, after which the transaction function will be recovered. Different kinds of business have different credit line for business settlement according to the different requirements for funds ratio.