Zhong Jin Suo Ji Zi (2010) No. 11
All members,
For the purpose of further clarifying technical requirements on the systems of financial futures business (hereinafter referred to as the business systems) and enhancing members’ control over risks involved in the business systems, pursuant to the Guiding Opinions on Further Improving IT Management by Futures Companies (the CSRC Announcement [2009] No.15) as well as relevant business rules of China Financial Futures Exchange (hereinafter referred to as the Exchange), issues related to your business systems are hereby notified to you as follows for your compliance:
1. The business systems of full clearing members of the Exchange shall meet the third kind of requirements stipulated in the Guidelines on IT Management by Futures Companies (hereinafter referred to as the “Guidelines”) promulgated by China Futures Association and also the following requirements on the performance, capacity and communication of their trading systems connected to the Exchange:
(1) The business systems shall have a stable server to process 300 orders per second for consecutive ten minutes, and meanwhile the capacity to store100,000 clients information and 100,000 records of open interest;
(2) Shall have two or more links provided by different operators to the Exchange and the bandwidths of both the host and back-up links shall be no less than 2Mbps;
(3) And in the case of hosting, the business systems shall have in place effective measures of segregation from systems of other members; and
(4) Shall meet other requirements prescribed by China Securities Regulatory Commission or the Exchange.
2. The business systems of trading clearing members of the Exchange shall meet the second kind of requirements stipulated in the Guidelines as well on the performance, capacity and communication of their business trading systems to the Exchange:
(1) The business systems shall have has a stable sever to process 200 orders per second for consecutive ten minutes, and meanwhile the capacity to store 100,000 clients information and 100,000 records of open interest
(2) Shall have two or more links provided by different operators to the Exchange and the bandwidths of both the host and back-up link shall be no less than 2Mbps and 512kps respectively; and
(3)Shall meet other requirements prescribed by China Securities Regulatory Commission or the Exchange.
3. The business systems of trading members of the Exchange shall meet the first kind of requirements stipulated in the Guidelines as well as the following requirements on the performance, capacity and communication of their business trading systems to the Exchange:
(1) The business systems shall have has a stable sever to process 100 orders per second for consecutive ten minutes, and meanwhile the capacity to store 100,000 clients information and 100,000 records of open interest;
(2)Shall have two or more links provided by different operators to the Exchange and the bandwidths of both the host and back-up link shall be no less than 512kps and 128kps respectively; and
(3) Shall meet other requirements prescribed by China Securities Regulatory Commission or the Exchange.
4. Full clearing members and special clearing members shall develop a business system for trading members with the ability to provide them with services including electronic fund deposit and withdrawal, clearing parameter and data release. They shall also submit their software structure specifications and relevant testing documentation to the Exchange to ensure that the systems of trading members they represent have the ability to recover from single point failure rapidly.
5. Members whose business systems are hosted shall meet the following requirements:
(1) Shall clarify link requirements with hosting service providers to ensure that the bandwidths of both the host and back-up links meet the requirements of the Exchange;
(2) Shall establish and maintain a sound business system in line with the requirements of the Guidelines, and also consistent with the specifications of hosting service providers to ensure members’ own control of their business system;
(3) Shall keep hosting service providers updated on relevant circulars and technical requirements of the Exchange and urging their compliance therewith;
(4) shall require hosting service providers to submit service reports on a regular basis stating in detail operation and maintenance situations including changes and day-to-day operation; and
(5) Shall establish a mechanism to evaluate on a regular basis the services provided by hosting service providers and whether hosting service providers perform service agreements in strict accordance with requirements.
6. When applying for membership of the Exchange and thereafter for a seat that is independent from the master system, an applicant shall submit to the Exchange its core design documentation, technical indicators and relevant documents proving that its trading system has passed the interface flexibility test. It shall also comply with the relevant technical standards of the Exchange and pass the following tests arranged by the Exchange:
(1) Link connectivity test: cooperate with the Exchange for link debugging and testing after notice from the Exchange;
(2) Link switch test: test switch between host and back-up links with the assistance of the technical department of the Exchange;
(3) System stress test: conduct stress test on the systems of the Exchange pursuant to the relevant requirements of Test Specification for the Business System of Futures Companies and provide detailed stress test materials to the Exchange; and
(4) Other tests as may be arranged by the Exchange.
7. Since it is a long-term and systematic work to implement and improve business systems, members shall strengthen management of other technical details while fully meeting all the technical requirements stipulated herein.
8. Any member of the Exchange that fails to meet the aforesaid system or test requirements shall be handled by the Exchange in accordance with the Trading Rules of China Financial Futures Exchange, the Measures of China Financial Futures Exchange for Membership Management and the Measures of China Financial Futures Exchange on Dealing with Violations and Breaches.
9. This Circular shall come into effect as of the date of issuance and the former Guidelines of China Financial Futures Exchange on IT of Financial Futures Business shall be repealed simultaneously.
China Financial Futures Exchange
Feb.21, 2010
