Two Departments Revise Measures for Administration of Securities Settlement Risk Fund

On November 1, the China Securities Regulatory Commission (CSRC) and the Ministry of Finance issued the Measures for Administration of Securities Settlement Risk Fund (the “Measures”), which will take effect on December 8, 2025.

The Measures stipulate that the Securities Settlement Risk Fund is used to advance or make up losses caused by default delivery, technical failures, operational errors, and force majeure. Fund sources include an extraction of 9% from the business income and earnings of Securities Registration and Settlement Institutions, as well as daily contributions by Settlement Participants based on transaction amounts. For equity products, contributions are at 9 parts per million; for fixed-income cash bonds, contributions are at 3 parts per million; and for pledge-style repos, contributions are tiered by different maturities. The Measures require that the Fund’s net assets total shall be no less than RMB 3 billion yuan, and participants that have reached one year may be exempt from contributions.

Use of funds is limited to bank deposits and the purchase of government bonds of key maturities, and the balance of bank deposits shall not be lower than 70% of the net assets total at the end of the previous month. Utilization of the Fund requires post-reporting, and the minimum payment threshold is RMB 20 million yuan. The Measures clarify requirements for risk prevention, internal management, and recourse and accountability for Settlement Participants and Institutions.