3rd-party Depository Service

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3rd-party Depository Service

Transaction settlement funds depository service for commodity-trading clients (hereinafter referred to as “Fund Depository Service”), also known as third-party depository service, refers to the account-based fund depository service whereas the clearing bank designated by CDB (acting as the trading center) sets up a special transaction settlement account for the trading center to deposit transaction settlement funds of the trading members, pursuant to the provisions of relevant laws, regulations and agreements; CDB also opens a transaction settlement fund management account for every trading member of the trading center within the Bulk-Commodity Market Online Deposit System, and matches the fund management account with the settlement account designated by the trading member opened with CDB or another bank under the same accountholder for inbound and outbound fund transfers; CDB processes inbound and outbound fund transfers, fund settlement, account reconciliation and detailed inquiries for the trading center and trading members.

1. Functions

Sign-up for CDB account activation, sign-up for CDB account maintenance, sign-up for account activation at other banks, account cancellation, CDB account crediting, CDB account debiting, crediting an account at another bank, debiting an account at another bank, day-end clearing (settlement), receipt printing, etc.

2. Product features

(1) Safeguarding fund safety for clients. A comprehensive client fund supervision system comprising CDB, the trading center, trading members and regulators ensures that client’s funds are transferred within a closed loop to safeguard capital safety.

(2) A highly scalable system. Compatibility with fund depository and regulatory requirements for different businesses, one-stop trader parameter configuration, automated settlement performed by the system.

(3) Professional team operations. Dedicated business management, technical and maintenance teams to effectively ensure reliable business operation according to strict business management, operating and contingency procedures.

(4) Integrated services, In addition to real-time account and settlement services for RMB and foreign currency businesses, a full suite of settlement-related products such as trade financing derived from the commodity supply chain are provided.

(5) User-friendliness. Clients may make fund transfers at the counter of CDB outlets or through online banking. Alternatively, settlement account transactions and inbound and outbound fund transfers may also be initiated via the trading center.