On January 11, 2019, China Financial Futures Exchange (hereinafter referred to as CICC) issued the "Notice on Treasury Bonds as Margin Business". On the basis of the pilot project of the previous treasury bonds, the application of treasury bonds to all financial futures was extended. Variety. The scope of application for the expansion of treasury bonds will be officially implemented on January 21, 2019.
The relevant person in charge of CICC said that expanding the scope of application of treasury bonds to all financial futures varieties can improve market operation efficiency, reduce the cost of institutional investors, and improve the service level of the financial futures market. In the next step, CICC will pay close attention to the market operation after expanding the scope of application of treasury bonds, and steadily promote the innovation of collateral business on the premise of ensuring the safe and stable operation of the financial futures market.
Notice about treasury bonds as margin business
In order to further reduce the market cost and play the role of treasury bonds as a market function of margin business, since January 21, 2019, the treasury bonds submitted by the clearing members can be used as the guarantee for all financial futures varieties. Members should strengthen their risk management and customer Risk warning to ensure the orderly development of the business.
The Notice on Launching the National Debt as a Pilot of Treasury Bond Futures Margin Business, promulgated on December 26, 2014, was also abolished.
It is hereby notified.
China Financial Futures Exchange
January 11, 2019
In order to further enhance market liquidity and promote the function of the financial futures market, the China Financial Futures Exchange recently issued the “Measures for the Management of Markets Made by China's Financial Futures Trading”.
At the same time, the "Securities Daily" reporter learned that in order to improve the liquidity of the treasury bond futures market and further improve the quality of market operations, CICC is recruiting two-year, five-year, 10-year treasury futures market makers. The deadline for submission of materials submitted by the institution to market makers is 5 pm on January 8.
Specifically, the application for treasury bond futures market qualifications should have seven conditions: net assets of not less than RMB 50 million; special agencies and personnel responsible for market transactions, market makers should be familiar with relevant laws and regulations and exchange business rules Have a sound market-making implementation plan, internal control system and risk management system; no major violations of laws and regulations in the last three years; stable and reliable market-making trading technology system; exchange-approved transactions, market-making or simulation transactions The experience of making a market; other conditions stipulated by the exchange.
The market maker recruitment process is divided into six steps, namely, submission materials, preliminary evaluation scores, special inspections, special scene tests, on-site defenses, and qualification determination.
Among them, in the initial evaluation score, CICC will implement the market-making implementation plan, risk management system, internal control system, emergency plan, historical compliance, financial situation, market-making experience and futures trading of treasury bonds. Rate it. Through the applicants who have passed the preliminary evaluation, CICC will conduct on-site or off-site inspections to verify the relevant content in the application materials.
In addition, in the special scene testing session, at the same time of the special inspection, CICC carried out special scene tests simultaneously to evaluate the performance of the applicant's market-making trading system in the special market scenario designed.
According to industry insiders, the introduction of the market maker system is an important basic institutional arrangement in the on-market derivatives market, and an important measure to improve market liquidity and operational efficiency. (Source: Securities Daily News)
(Article source: CICC website)