Recently, the Shenzhen Stock Exchange bond trading rules and three supporting guidelines were officially implemented. Shenzhen Stock Exchange, together with China Clearing and all parties in the market, worked together to implement the arrangements for the launch of the system, especially to ensure the smooth switching between the old and new systems, so as to realize the normal and orderly settlement of various bond transactions. In the first week of the implementation of the new regulations, the trading system has handled 21300 bond cash bond declarations and 7184600 general pledge repo declarations, reaching 44.081 billion yuan of cash bond transactions and 859777 billion yuan of repo transactions.
It is worth noting that the implementation of the new regulations on bonds and the simultaneous launch of the supporting trading system have fully realized the "separation of stocks and bonds" of the bond trading rules and system in Shenzhen Stock Exchange, marking the important phased achievements of the reform of the bond trading system in Shenzhen and the development of the bond market in Shenzhen has entered a new stage.
trading methods are more abundant
The new regulations on bond trading have comprehensively optimized the existing bond trading system in Shenzhen, and improved the trading experience of investors from the aspects of trading mode, trading mechanism and trading management.
First, trading methods are more abundant. Based on the original bidding transaction and block transaction, the new regulations optimize the formation of matching, click and negotiation transaction methods, and add inquiry and bidding transaction methods. The scope of transaction declaration in the first week covers five trading methods. Among them, except for bidding, the other four new trading methods are all successful, and the new trading methods operate well.
Secondly, the trading mechanism is more flexible. The new regulations cancel the restrictions on the scope of the declared price of agreement transactions, and guide investors to trade rationally by introducing the post transaction reporting mechanism of transaction price deviation. Some risky bonds were successfully traded at a reasonable market valuation price, realizing the marketization and efficient clearing of bond credit risk, and enhancing the transaction continuity.
In addition, transaction management is more secure. Based on market demand, Shenzhen Stock Exchange has established a bond trading account system to facilitate investors to implement risk control measures such as counterparty management. In the first week of trading, investors successfully used the reporting information and participated in multiple click, inquiry and bidding transaction declarations through independent selection and explicit anonymity. The quality and efficiency of counterparty management have been continuously improved and the transaction security has been further guaranteed.
optimize the infrastructure construction of bond market
"Since the launch of the bond trading mechanism optimization project in 2018, the Shenzhen Stock Exchange has conducted in-depth research on the market demand, earnestly focused on solving the market pain points, and promoted the improvement of the infrastructure construction of the bond market." The relevant person in charge of Shenzhen Stock Exchange said.
Broaden market participants and establish a bond trading participant system. The new regulations further enhance the convenience of banks, insurance, funds and other important institutional investors to directly participate in the exchange bond market, and provide an institutional basis for mainstream bond investment institutions to enter the market for trading. Up to now, Shenzhen Stock Exchange has initially established a diversified investor system covering more than 300 bond trading participants and many individuals such as securities companies, fund companies, banks and insurance.
Enrich the liquidity support mechanism and launch market making business. Establish a market making mechanism, complete the disclosure of the list of the first batch of benchmark market making bonds, and guide the intended market making institutions to make preparations before business development.
Comply with market trading habits, standardize reporting elements, further connect the pricing method, trading time, minimum change unit and reporting quantity unit of bond trading with domestic and foreign markets, and lay a solid foundation for the optimization of trading mechanisms such as the extension of subsequent trading time.
Comprehensively upgrade the market release, combine the new bond trading mode and the extended trading time and other arrangements, comprehensively optimize the snapshot market and transaction by transaction market of bond cash bonds and general pledge repo business, specially reveal the matching transaction large amount entrustment and transaction market, and further optimize the statistical indicators and index market, so as to provide market participants with more timely, efficient, comprehensive and systematic bond trading information.
Provide flexible and efficient trading channels. While Shenzhen stock exchange realizes the "separation of shares and debts" in the back office of the trading system, the front office synchronously creates an independent "special area for fixed collection of trading terminals". Market participants can not only access through the traditional "electronic interface" mode, but also choose to use the "fixed collection area of trading terminal" to carry out full caliber bond business, so as to realize flexible and efficient direct trading connection.
improve market liquidity
According to the relevant person in charge of the Shenzhen Stock Exchange, the bond trading rules and system optimization involve a wide range and long chain links. In order to help market participants grasp relevant changes in time, the Shenzhen stock exchange gives full play to the joint efforts of all parties in the market, makes detailed preparations, strengthens investor publicity and education through multiple channels, and makes market mobilization to ensure the smooth switching of original businesses and the steady development of new businesses.
On the one hand, carry out investment and education publicity through multiple channels to know everything. Sort out the key issues of the market in advance, and carry out investor education and publicity in the form of launching graphic publicity products, issuing the manual of "100 questions and answers to the bond trading rules of Shenzhen Stock Exchange" and organizing online special training, covering more than 60000 people in total.
On the other hand, focus on key points and key links to remind market institutions to be fully prepared. Prompt the market to implement various preparations such as pricing method adjustment, account information reporting and brokerage business management through special area notice, online announcement and point-to-point reminder, so as to ensure the full coverage of key business points.
The relevant person in charge of the Shenzhen Stock Exchange said that under the leadership of the CSRC, the Shenzhen Stock Exchange will continue to cooperate with all parties in the market to further promote and improve the supporting projects related to bond trading, improve market liquidity and transaction convenience, promote the establishment of a bond market system with complete infrastructure, efficient market operation, good price discovery and effective risk control mechanism, and promote the high-quality development of the exchange's bond market.
