interbank bond market
exchange bond market
Commercial bank over-the-counter bond market
1. Development of the inter-bank bond market
It refers to the market where commercial banks, rural credit cooperatives, insurance companies, securities companies and other financial institutions as well as some non-financial institutions qualified investors conduct bond sales and repurchases .
(There are agricultural injury certificates and qualifications among banks)
The inter-bank bond market has now become the main part of China's bond market . Most book-entry treasury bonds and policy financial bonds are issued and traded on this market.
2. Trading methods of inter-bank bond market and exchange bond market
interbank bond market
RFQ transaction
The method for both parties to negotiate to determine the transaction price includes three steps: quotation, formatted inquiry and confirmation of transaction ; the minimum transaction volume is 100,000 yuan in total face value , and the minimum change unit in transaction volume is 100,000 yuan in total face value.
Click to complete the transaction
The minimum transaction volume is 1 million yuan in total face value of the coupon , and the minimum change unit in transaction volume is 100,000 yuan in total face value.
Inter-bank inquiry + click
The minimum inquiry price is 100,000 yuan, and the minimum change is 100,000 yuan.
The minimum number of clicks is 1 million, and the minimum change is 100,000 yuan.
exchange market
Bidding to match transactions
OTC
The exchange's fixed income electronic platform is positioned for institutional investors and provides services for large-amount cash securities transactions.
Exchange bidding + OTC
Large-amount cash securities transactions on the fixed income platform
3. Custody methods of inter-bank bond market and exchange bond market
interbank bond market
It is an over-the-counter market that implements a first- and second-level comprehensive custody account model. China Central Government Bond Depository and Clearing Co., Ltd. is the designated central bond depository institution.
exchange market
Implement a system of "central level, secondary (securities company) custody" . All authorities in the market are registered with the China Securities Depository and Clearing Corporation . Investors participating in the securities market must go through qualified securities companies and entrust assets to securities companies for agency transaction settlement.
Inter-bank: first-level and second-level comprehensive custody
Exchange: central registration, secondary custody
4. Settlement methods in the inter-bank bond market and the exchange bond market
interbank bond market
A real-time full-transaction settlement mechanism is adopted , and is completed uniformly through the Central Bond Integrated Business System of China Central Government Bond Depository and Clearing Co., Ltd.
exchange market
Adopting a central counterparty net settlement mechanism , China Securities Depository and Clearing Co., Ltd. is responsible for the clearing and settlement of bond transactions, and provides settlement guarantees as the common counterparty for both parties to the transaction.
Interbank: Full transaction-by-transaction settlement mechanism
Exchanges: Central Counterparty Netting Mechanism
5. Definition and conditions for custody transfer in the bond market
Transfer custody refers to the transfer of custody debt between two custody accounts opened by the same investor.
Currently, except for treasury bonds (including interest-bearing treasury bonds and local government bonds) and corporate bonds that can be transferred to custody across markets, other bond types cannot be transferred to custody across markets.
The transfer to escrow will take at least one day to complete . At present, the fastest transfer of treasury bonds to custody can achieve payment on T+1 day , while most other bonds can only achieve payment on T+2 day or even T+3 day.
