The China Securities Regulatory Commission (the “CSRC”) and the Ministry of Finance (the “MOF”) promulgated the Provisions on Clarification of Matters Relating to the Percentage of Payment to the Safeguard Fund for Futures Investors (the “Provisions”) on November 8, 2016.
Under Article 9, Paragraph 2 of the Measures for the Administration of the Safeguard Fund For Futures Investors (CSRC Directive No. 129) amended by the CSRC and the MOF, the subsequent funding sources of the safeguard fund will include: (1) a specific percentage of the transaction fees collected by a futures exchange from its futures company members; (2) a specific percentage of the transaction fees collected by the futures companies from the trading amounts handled; and (3) other lawful property recovered or accepted by the management for the Safeguard Fund. The Provisions thus specify the percentage of payments to the Safeguard Fund in accordance with the above provisions of the Measures for the Administration of the Safeguard Fund for Futures Investors. The Provisions require a futures exchange to contribute 2% of the transaction fees collected from its futures company members to the Safeguard Fund, and each futures company shall contribute 0.000005% to 0.00001% of the transaction amount that it handled. The Provisions came into effect on December 8, 2016.