In line with the “Notice of Relevant Issues Concerning Listed Commercial Banks’ Pilot Trading of Bonds on Stock Exchanges”, the China Securities Depository and Clearing Corporation Limited (SD&C), the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE) made arrangements for relevant issues concerning bonds trading of listed commercial banks on the SSE and the SZSE in the pilot period by jointly issuing on October 28 the “Notice of Relevant Issues Concerning Bonds Trading of Listed Commercial Banks on Stock Exchanges in Pilot Period”.
According to the notice, commercial banks, accessible to bonds market on the stock exchanges for bonds trading at the auction system, are required to take the self-regulatory management of stock exchanges in addition to providing applications, basic information registration forms and other documents before obtaining the trading qualifications. Meanwhile, they should make technical preparations for bonds trading by opening their communication lines in light of the technical specifications required by the stock exchanges.
During the pilot period, commercial banks can conduct spot trading of treasury bonds, enterprise bonds and corporate bonds or other products approved by regulatory authorities at the auction system of the stock exchanges.
The notice stipulates that listed commercial banks, acting as special clearing participants, are eligible for direct participation in bonds registration and clearing business of the SD&C. They are required to sign the agreement on securities capital clearing and take self-regulatory management of the SD&C in addition to providing applications and other documents before obtaining clearing qualifications. Besides, commercial banks can apply for opening ordinary securities accounts to the Shanghai and Shenzhen branches of the SD&C by filling in the “Registration Application Form of Intuitions’ Securities Accounts” and submitting application materials. Commercial banks should use the securities accounts in compliance with relevant rules. To facilitate clearing and delivery of commercial banks’ bonds business, the Shanghai and Shenzhen branches of the SD&C will, with the commercial banks as legal persons, open for the commercial banks one account for capital delivery and the other for other clearing and delivery. According to the SD&C, the minimum excess reserve for the capital delivery account of the commercial banks is zero at present and handling of the mutual guarantee fund is subject to the current practice.