The procedures for an EFP transaction on Chinese government bond futures have the following characteristics: (1) CFFEX is only responsible for the trading and clearing of the futures contract, and the investors thereto complete the trading and settlement of the physicals in a corresponding trading venue; (2) the parties thereto submit the EFP report after the execution of the physicals; (3) the EFP report is entered by the seller of the futures contract and confirmed by the buyer of the futures contract; and (4), CFFEX make real-time intraday confirmation of any change in futures positions based on the EFP report of the parties after the EFP transaction becomes effective upon being confirmed by CFFEX.
