SSE promotes guidelines for services of bond collateral disposal platform
26 October 2018 Shanghai
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The Shanghai Stock Exchange (SSE) has issued and implemented guidelines for the services of a bond collateral disposal platform in order to improve the mechanism for bond collateral disposal.
SSE said the guidelines will protect the legitimate rights and interests of investors, and promote the healthy development of the exchange-traded bond market.
In recent years, the exchange-traded bond repo market has developed rapidly and a multi-level repo business system has formed, noted the SEE.
SSE said: 鈥淭he size of collateral in the repo transaction category has grown significantly, the number of market participants has expanded and the overall operation of the repo businesses has been stable, safe and controllable.鈥�
It added: 鈥淭he centralised platform will provide collateral disposal services for the market and further improve the institutional mechanism for the exchange-traded repo market.
The platform is of great significance to the long-term healthy development of the bond market.鈥�
The SSE said the guidelines stipulate the business norms of the platform in the scope of application, the underlying assets of the disposal, the participating entities, the application and announcement for the disposal service, disposal arrangements and other aspects.
SSE also stated the introduction of implemented guidelines will effectively improve the liquidity of collateral, meet the need of market institutions to quickly dispose of collateral, and protect the legitimate rights and interests of investors.
Items for disposal include collateral products such as treasury bonds, local government bonds, financial bonds, corporate bonds, enterprise bonds, convertible bonds, asset-backed securities and other SSE-approved bonds.
The SSE concluded by saying that in the near future, it will make efforts in training and promotion for the platform.
It said that it will continue to make improvements, optimise the mechanics of bond collateral disposal, increase disposal efficiency, fully protect the legitimate rights and interests of all the parties in repo.
SSE said the guidelines will protect the legitimate rights and interests of investors, and promote the healthy development of the exchange-traded bond market.
In recent years, the exchange-traded bond repo market has developed rapidly and a multi-level repo business system has formed, noted the SEE.
SSE said: 鈥淭he size of collateral in the repo transaction category has grown significantly, the number of market participants has expanded and the overall operation of the repo businesses has been stable, safe and controllable.鈥�
It added: 鈥淭he centralised platform will provide collateral disposal services for the market and further improve the institutional mechanism for the exchange-traded repo market.
The platform is of great significance to the long-term healthy development of the bond market.鈥�
The SSE said the guidelines stipulate the business norms of the platform in the scope of application, the underlying assets of the disposal, the participating entities, the application and announcement for the disposal service, disposal arrangements and other aspects.
SSE also stated the introduction of implemented guidelines will effectively improve the liquidity of collateral, meet the need of market institutions to quickly dispose of collateral, and protect the legitimate rights and interests of investors.
Items for disposal include collateral products such as treasury bonds, local government bonds, financial bonds, corporate bonds, enterprise bonds, convertible bonds, asset-backed securities and other SSE-approved bonds.
The SSE concluded by saying that in the near future, it will make efforts in training and promotion for the platform.
It said that it will continue to make improvements, optimise the mechanics of bond collateral disposal, increase disposal efficiency, fully protect the legitimate rights and interests of all the parties in repo.
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