· Document Number：No. 135 [2016] of the National Association of Financial Market Institutional Investors

· Area of Law： Banking & Finance

· Level of Authority： Industry Regulations

· Date issued：09-30-2016

· Effective Date：09-30-2016

· Status： Effective

· Issuing Authority： National Association of Financial Market Institution Investors

Notice of the National Association of Financial Market Institutional Investors on the Recordation Matters concerning the Pilot Program of Credit Risk Mitigation Instruments
(No. 135 [2016] of the National Association of Financial Market Institutional Investors)
All market participants:
To strengthen the self-regulation of the pilot program of credit risk mitigation instruments and promote the sound development of the pilot program, in accordance with the Rules for the Pilot Program of Credit Risk Mitigation Instruments for the Inter-bank Market and the relevant product guidelines, you are hereby notified of the recordation matters concerning the pilot program as follows:
I. To become a core dealer upon recordation, a financial institution shall satisfy the following requirements:
(1) It satisfies the business qualification requirements of the state financial regulatory department.
(2) It is staffed with professionals in credit risk mitigation instruments.
(3) It has established internal operating rules for credit risk mitigation instruments and a risk management system.
(4) It has not committed any violation of laws or any major violation of regulations in the past two years.
II. To become a general dealer upon recordation, a non-corporate product shall satisfy the following requirements:
(1) It complies with the investment scope in the investment agreement.
(2) It is staffed with professionals in credit risk mitigation instruments.
(3) The institution managing the non-corporate product has established internal operating rules for credit risk mitigation instruments and a risk management system.
(4) The institution managing the non-corporate product has not committed any violation of laws or any major violation of regulations in the past two years.
III. To become a general dealer upon recordation, a non-financial institution shall satisfy the following requirements:
(1) It is staffed with professionals in credit risk mitigation instruments.
(2) It has established internal operating rules for credit risk mitigation instruments and a risk management system.
(3) It has not committed any violation of laws or any major violation of regulations in the past two years.
IV. To become a credit risk mitigation warrant issuer (hereinafter referred to as the “warrant issuer”) upon recordation, a core dealer shall satisfy the following requirements:
(1) Its net assets are no less than 4 billion yuan.
(2) It is staffed with professionals in credit risk mitigation warrant business, and has the necessary business system and information system.
(3) It has adequate and effective internal operating rules for the issuance of credit risk mitigation warrants and business management system.
(4) It has a relatively strong credit risk management and assessment capability and ample experience in credit risk management, and has five or more risk management personnel.
V. To become a credit-linked note issuer (hereinafter referred to as the “note issuer”) upon recordation, a core dealer shall satisfy the following requirements:
(1) Its net assets are no less than 4 billion yuan.
(2) It is staffed with professionals in credit-linked note business, and has the necessary business system and information system.
(3) It has adequate and effective internal operating rules for the issuance of credit-linked notes and business management system.
(4) It has a relatively strong credit risk management and assessment capability and ample experience in credit risk management, and has five or more risk management personnel.
VI. Credit risk mitigation instrument business participants that satisfy the above requirements (hereinafter referred to as the “participants”) shall obtain the membership of the National Association of Financial Market Institutional Investors (“NAFMI”), and submit the recordation materials to the secretariat of NAFMI according to the specific requirements in Annex 1. After the recordation materials submitted by the core dealers, warrant issuers, and note issuers pass the Professional Committee of Financial Derivatives of NAFMI, they may carry out the relevant business, while general dealers may carry out the relevant business after the recordation materials are filed with the secretariat of NAFMI.
VII A core dealer shall, prior to 12:00 p.m. of the working day after the day of conclusion of a transaction, truthfully enter the credit risk mitigation instrument transaction information into the Transaction Information Filing Form (Annex 2), and send the form to the secretariat of NAFMI by email or fax. The email subject and the name of any attachment shall be both in the form of “transaction information – (full name of institution) – transaction date,” and the fax shall be signed by both the person handling the matter and the reviewer.
VIII. Participants shall ensure the veracity, accuracy, and completeness of the information filed.
IX. Participants shall designate persons to handle the relevant recordation work, and email the Contact Information Form for Institutions (Annex 3) to the email address for transaction filing.
X. Where a participant's recordation information changes, the participant shall contact the secretariat of NAFMI in a timely manner.

Tel for recordation: 010-66538367 010-66539205
Tel for membership: 010-66539035 010-66538386
Fax: 010-66539028
Email address for transaction filing: crmti@nafmii.org.cn
Annex: 1. Specific Recordation Material Requirements for Credit Risk Mitigation Instruments
2. Transaction Information Filing Form
3. Contact Information Form for Institutions
National Association of Financial Market Institutional Investors
September 30, 2016