The China Securities Regulatory Commission’s initiation of the reform of the trade-in-delivery deal is conducive to institutionally enhancing the security of the settlement system_Transaction_Fund_Market

Original title: The China Securities Regulatory Commission’s initiation of the reform of goods-to-bank settlement is conducive to institutionally enhancing the security of the settlement system

Beijing News Shell Finance News On January 14, the China Securities Regulatory Commission announced that the China Securities Regulatory Commission has officially launched the reform of the delivery-versus-bank (hereinafter referred to as DVP) reform, and has publicly solicited opinions from the market on the proposed revision of the “Administrative Measures for Securities Registration and Settlement”. Securities Depository and Clearing Co., Ltd. simultaneously solicited opinions on the “Settlement Rules” and “Administrative Measures for Settlement Reserve Funds”.

DVP is a basic system generally adopted in the international market, which is used to ensure the full settlement of money and coupons after a securities transaction is concluded. my country’s Securities Law clearly stipulates that when securities registration and settlement institutions provide net settlement services for securities transactions, they shall require settlement participants to deliver securities and funds in full according to the DVP principle, and provide delivery guarantees. At present, my country’s securities market guarantees that brokerage and margin financing and securities lending businesses involving individual investors comply with the DVP system through systems such as third-party depository and pre-trade capital verification and securities verification. Not yet perfect. This reform implements the securities law, learns from international best practices, establishes the connection between securities settlement and fund settlement for proprietary and custody business, and clarifies the default disposal arrangements.

This reform will keep the existing trading settlement system and habits of investors basically unchanged, and will have no impact on the vast number of individual investors. The reform is conducive to enhancing the security of the settlement system from the system and further attracting overseas funds to enter the Chinese market. The reform will simultaneously reduce the minimum payment ratio of settlement reserves for settlement participants, which will help reduce the occupation of funds in the whole market and improve the efficiency of fund use.

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