On May 16, 2022, the bond trading rules of Shenzhen Stock Exchange and three supporting guidelines were officially implemented, and the supporting trading system was launched simultaneously. The Shenzhen Stock Exchange fully realized the "separation of shares and bonds" of the bond trading rules and system, marking that the reform of the bond trading system of Shenzhen stock exchange has achieved important phased results and the development of Shenzhen bond market has entered a new stage.
Under the overall guidance of China Securities Regulatory Commission, the Shenzhen Stock Exchange, together with China Clearing and all parties in the market, worked together to strictly implement the arrangements for the launch of the system, especially to ensure the smooth completion of the switching between the old and new systems, so as to realize the normal and orderly development of the settlement of various bond transactions.
the first week's trading run smoothly
investors' trading experience improvement
In the first week of the implementation of the new regulations on bond trading, 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.
In the first week, the trading operation was stable and the trading experience of investors was improved. 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 trading declaration in the first week covers five trading modes, and the new trading mode works well.
Second, 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.
Third, 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.
Bond trading rules and system optimization involve a wide range and long chain links. In order to help market participants grasp relevant changes in a timely manner, the Shenzhen stock exchange gives full play to the joint efforts of all parties in the market, makes practical and detailed preparations, strengthens investor publicity and education through multiple channels, and does a good job in market mobilization, so as to ensure the smooth switching of original businesses and the steady development of new businesses.
First, carry out investment and education publicity through multiple channels to know everything. We sorted out the key concerns of the market in advance and carried out investor education and publicity in the form of graphic publicity products, covering more than 60000 people in total.
Second, focus on key points and key links and remind market institutions to be fully prepared.
solve the "pain point" of the market
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, focused on solving the "pain points" of the market, and promoted the improvement of the infrastructure construction of the bond market.
First, broaden the 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.
Second, 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.
Third, 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.
Fourth, comprehensively upgrade the market release, combined with 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.
Fifth, 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".
The Shenzhen Stock Exchange said that in the next step, under the leadership of the CSRC, it 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.
