With the official launch of the new centralized bond auction trading platform of Shanghai Stock Exchange on December 20, the bond spot bond auction trading and pledge repo trading were successfully transferred from the original auction matching platform to the new platform. So far, the stock and bond trading system of Shanghai Stock Exchange has realized mutual independence. The centralized bidding trading, agreement trading and pledge repo trading of bonds in Shanghai Stock Exchange have operated independently in the new bond trading system, and the "separation of stocks and bonds" of the trading system has been successfully completed.
As of December 23, since the launch of the new platform, an average of 5.826 million daily declarations of cash bond transactions and 855000 daily declarations of pledged repo transactions have been completed. The core trading system operates smoothly and the settlement of various bond transactions is carried out normally and orderly.
The construction of the new bond trading system is an important measure for the Shanghai Stock Exchange to implement the high-quality development requirements of the bond market and promote the construction of the secondary bond market. In 2019, under the guidance of China Securities Regulatory Commission, the Shanghai Stock Exchange, together with China Clearing and other market entities, started the construction of a new bond trading system. In general, in accordance with the principle of "step-by-step implementation and smooth promotion", the non trading business of bonds has been migrated from the original bidding matching platform to the comprehensive business platform, the bulk trading of bonds has been migrated from the comprehensive business platform to the fixed income platform, and the online switching of the recent centralized bidding trading platform has been realized in three stages. After three years, the construction of the new bond trading system has been successfully completed, which will provide solid technical support for the high-quality development of the bond market of Shanghai Stock Exchange.
First, realize the "separation of stock and debt" and eliminate the "strong coupling" between stock and debt. The original trading system of Shanghai Stock Exchange is a comprehensive bidding matching platform integrating stock, bond and other transactions. With the vigorous development of the capital market, the development of stock and bond markets gradually presents different characteristics. The construction of the new bond trading system of Shanghai Stock Exchange will provide a technical basis for the reform of the bond trading market, avoid mutual interference between the two systems, improve the overall guarantee level of market safe operation, and provide an important guarantee for promoting the interconnection of bond market transactions and the implementation of various reform and innovation tasks of Shanghai Stock Exchange.
Second, facilitate bond trading participants and improve market service level. Compared with stock trading, bond trading has the characteristics of large amount, low frequency and diversification. The new bond trading system will follow the law of the bond market, be market-oriented, provide bond trading participants with trading methods and trading platforms that meet the characteristics of bond products, provide trading participants with more efficient technical services in business declaration, transaction matching and data distribution, continuously improve the trading experience of market participants and enhance market stickiness.
Third, enrich bond trading products and deepen the construction of bond secondary market. Liquidity is the vitality of the secondary bond market. Relying on the launch of the new bond trading system, the Shanghai Stock Exchange will take "improving market liquidity and transaction efficiency" as the core, strive to make up for the shortcomings of bond trading, expand bond trading participants, effectively promote the implementation of mechanism optimization and innovative products, such as starting the exploration of bond market making mechanism and promoting the optimization of bond pledge repo, so as to further improve the liquidity of secondary markets.
Fourth, promote the self-reliance of the exchange in science and technology and explore the way for the construction of a new generation of trading system. The new bond trading system is the first time that Shanghai stock exchange adopts x86 technical architecture to build a matching trading system. Through the independent research and development of the core system, Shanghai Stock Exchange strives to build a safe, stable, technologically advanced, flexible and easy-to-use trading infrastructure, which not only achieves significant improvement in performance indicators such as time delay, but also accumulates valuable experience for the exchange in building a fourth generation (G4) trading system based on its own technology.
The Shanghai Stock Exchange said that in the next step, it will earnestly ensure the safe operation and continue to promote the optimization of bond trading mechanism and operation mode. At the same time, actively promote the sorting and integration of the new bond trading rule system, constantly improve the infrastructure and basic system construction of the bond market, improve the price discovery function of the secondary bond market, better meet the needs of investors, and promote the high-quality development of the bond market of Shanghai Stock Exchange to a new stage.
(Securities Times)
