Shanghai Stock Exchange Successfully Carries out Associate DeliveryShanghai Stock Exchange announced lately that one of its departments has succeeded for the first time in carrying out associate delivery.Associate delivery refers to when any stock department under membership is charged by another member entity, the entity must bear the final delivery responsibility for market exchange. If the trustees fail to perform their duty, the trustors must complete delivery to their registered settlement companies. Sources say for some stock exchange departments were under charge the trustors had eluded their responsibility, thus severely damaging the safety of security settlement system and the stable operation. With the approval of China Securities Regulatory Committee, Shanghai Stock Exchange, according to the relationship between the trustors and trustees and membership entity settlement principle, launched the associate delivery measure, defining what responsibility the trustors must bear. Successful implementation of associate delivery is of great significance to protect the legal rights and interests of investors and can effectively control the risk of the central settlement system, thus maintaining the normal market order and market stability. |
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