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Escrow (Transaction Settlement FundMargin Deposit of Credit Transaction )
 
Product Overview
Escrow of clients’ transaction settlement fund
This is an intermediary service for which CMB serves as an independent third party to establish detailed accounts for the trading funds of the securities companies’ clients, transfer the clients' trading funds in a fixed direction through the bank-securities transfer system, supervise clients’ trading funds, verify the total fund amounts against detailed accounts, and charge the securities companies the due escrow fees.
Escrow of clients’ transaction margin guarantee deposit
This is an intermediary service for which CMB serves as an independent third-party to provide escrow service to the margin trade business of Securities companies’ clients, establish detailed margin accounts reportfor the clients' credit transactions, transfer the margin in a fixed direction for the clients’ credit transactions through the bank-securities transfer system, change the clients’ credit fund accounts based on the clearing and delivery data from the securities companies, check the funds to ensure security of the clients' credit funds, and charge the securities companies the due escrow fees.
Advantages
1.Centralized transfer between CMB and securities companies. CMB's escrow system connects the bank and the securities company, and supports centralized processing of the bank-securities transfer.
2.Security and stability. CMB’s escrow system runs quickly and stably.
3.Convenience and speed. Both counter and online transfers for the bank-securities of individual and enterprise clients enable funds to be received in real time.
4.Optimum convenience. CMB has launched the first 24/7 bank-securities transfer service in the industry, bringing unprecedented convenience for clients.
5.One-stop service.CMB connects the transfer systems of escrow, stock index futures, and gold trading to allow fund transfers between the accounts of each.
Service Procedure
1. A securities company applies for the escrow service with CMB.
2.The company and CMB jointly sign the escrow agreement for clients’ trading funds, supplementary agreements, and other legal documents.
3.The company and CMB develop respective interfaces, and configure the required hardware based on jointly set system interface specifications.
4.The company and CMB test networking before system launch.
5.The company completes other preparations to launch the escrow system, including opening and filing summary accounts, printing and distributing the tripartite escrow agreement, formulating business management measures and operating processes, and applying for the launch jointly with CMB.
Note:
All the contents stated above are for your reference only. Please consult the local branch of China Merchants Bank for further information. China Merchants Bank reserves the ultimate right of interpretation for the contents in this page.