On May 16, 2022, the "Shenzhen Stock Exchange Bond Trading Rules" and three supporting guidelines were officially implemented, and the supporting trading system was launched simultaneously. Important milestones have been achieved in the reform of the bond trading system, and the development of the Shenzhen bond market has entered a new stage.
Under the overall guidance of the China Securities Regulatory Commission, Shenzhen Stock Exchange will work with China Clearing and market parties to strictly implement various arrangements for system launch and special guarantees, smoothly and smoothly complete the switch between the old and new systems, and realize the normal and orderly development of various bond trading settlements.
Trading runs smoothly in the first week
Improved trading experience for investors
In the first week of the implementation of the new regulations on bond trading, the trading system has processed a total of 21,300 applications for spot bonds and 7,184,600 applications for general-purpose pledged repurchase transactions, reaching 44.081 billion yuan in spot bond transactions and 859.777 billion yuan in repurchase transactions.
The first week of trading was stable, and investors' trading experience was improved. The new bond trading regulations have comprehensively optimized the existing bond trading system in Shenzhen, and improved investors’ trading experience in terms of trading methods, trading mechanisms, and trading management.
First, the transaction methods are more abundant. The new regulations optimize the formation of matching, click and negotiation transaction methods on the basis of the original auction transactions and block transactions, and add inquiry and bidding transaction methods. The first week of transaction declarations covered five transaction methods, and the new transaction methods worked well.
Second, the transaction mechanism is more flexible. The new regulations remove the limit on the declared price range for agreement-type transactions, and guide investors to trade rationally by introducing a mechanism for reporting transaction price deviations after the fact.
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, Shenzhen Stock Exchange has given full play to the joint efforts of all parties in the market, made practical preparations, strengthened investor publicity and education through multiple channels, and done a good job in market mobilization, so as to ensure the smooth switching and new growth of existing businesses. Business is developing steadily.
The first is to carry out investment education publicity through multiple channels, so as to know everything you need to know. It sorted out key market concerns in advance, and carried out investor education and publicity through the launch of graphic and textual products, covering more than 60,000 people.
The second is to focus on key points and key links, and remind market institutions to be fully prepared.
Solve market "pain points"
Optimizing bond market infrastructure construction
Since the Shenzhen Stock Exchange launched the bond trading mechanism optimization project in 2018, it has conducted in-depth research on market demand, focused on solving market "pain points", and promoted the improvement of bond market infrastructure.
The first is to expand market participants and establish a bond trading participant system. The new regulations further enhance the convenience for important institutional investors such as banks, insurance companies, and funds to directly participate in the exchange bond market, and provide an institutional basis for mainstream bond investment institutions to enter the market.
The second is to enrich the liquidity support mechanism and launch the market-making business. Establish a market-making mechanism, complete the disclosure of the first batch of benchmark market-making bond lists, and guide prospective market-making institutions to prepare for business development.
The third is to conform to market trading habits, standardize the elements of declaration, and further connect the pricing method, trading hours, minimum change unit and declared quantity unit of bond trading with domestic and overseas markets, and lay a solid foundation for the optimization of trading mechanisms such as the extension of subsequent trading hours.
The fourth is to comprehensively upgrade the release of market quotations. Combined with the arrangement of new bond trading methods and extended trading hours, we will coordinate and optimize the snapshot quotations and transaction quotations of bond spot bonds and general pledged repurchase business, and carry out matching transaction large-value orders and transaction quotations. Specially reveal and further optimize statistical indicators and index market conditions.
Fifth, provide flexible and efficient transaction channels. While the Shenzhen Stock Exchange realizes the "separation of stocks and debts" in the background of the trading system, the front office simultaneously creates an independent "trading terminal fixed income area".
The Shenzhen Stock Exchange said that in the next step, under the leadership of the China Securities Regulatory Commission, it will continue to cooperate with all parties in the market to further promote and improve bond trading-related supporting projects, enhance market liquidity and trading convenience, and promote the establishment of complete infrastructure, efficient market operation, and good price discovery. , An effective bond market system with risk control mechanism, and promote the high-quality development of the exchange bond market.
