Massimo Cirasino is Head of the Payment Systems Development Group of the Financial and Private Sector Development Vice Presidency (FPDVP) at the World Bank. Mario Guadamillas is the FSAP Manager in FPDVP at the World Bank. Office research has been conducted by Froukelien Wendt, Senior Securities Settlement Specialist at the Payment Systems Development Group of the FPDVP at the World Bank.
CSRC Annual Reports 2008 and 2009, CDC Annual Report of China’s Bond Market 2009, PBC responses on the FSAP questionnaire for payment systems and securities clearing and settlement; websites from CSRC, SSE, SZSE, SHFE, CDCC/Chinabond; and other relevant documents.
CFETS provides the electronic trading platform for interbank markets.
There are also H shares listed on the Hong Kong Stock Exchange, denominated, traded and settled in HKD; and N shares, listed on the New York Stock Exchange, denominated, traded and settled in USD.
SD&C settles most transactions as a CCP except for the following SSE operations: repurchase of T-bond buyout repos upon maturity, exercise of warrants, special floor of block trading, trading of non-novated corporate bonds, transfer of Specific Asset Management Plan (SAMP), bond placing for shareholders, seasoned offering for shareholders, corporate bond issue via exchange system.
Source is SD&C, Yewu tongji yuebao
This is a function that SD&C performs de facto but is not formally included in the legal and regulatory framework.
“Settlement” banks are not indeed providing a settlement function that is provided by SD&C as settlement agent. Thus, “settlement” banks simply provide the accounts services that support funds transaction for both settlement and the third party custodian system.
“Settlement” banks play a funds custodian role but not a securities custodian role.
Settlement participants are brokers-dealers. According to Settlement Participant Member Rules of SD&C, only securities companies are eligible for settlement participant member of SD&C.
The SHFE was established in 1998 from the merger of the Shanghai Metal Exchange, Shanghai Cereals and Oil Exchange and Shanghai Commodity Exchange.
Established in 1993.
Established in 1990.
According to usual practices in China figures of trading volume include both legs.