CCDC launches more flexible settlement services to further facilitate overseas participation in the CIBM
24 March 2020 -- Under the guidance of the PBC and other regulators, China Central Depository & Clearing Co., Ltd. (CCDC) launches two service optimization initiatives to enrich and supplement the settlement arrangements in the China Inter-bank Bond Market to satisfy the diverse demands of overseas investors. The Recycling Settlement Service, which allows overseas investors to rearrange the settlement of cash bond trades that has failed on the original settlement date within required period, offers overseas investors an effective tool for operational risk management; and the T+N (N≥4) Settlement Service allows them to settle cash bond trades with non-standard settlement cycles (i.e. T+N, N≥4), thereby aligning domestic settlement rules with international practices to meet the special requirements from certain overseas investors. Related implementation rules are now available on www.chinabond.com.cn.
CCDC, as an important FMI of China and the gateway of CIBM opening-up, plays an active role in the implementation of CIBM opening-up measures in collaboration with the regulators. By the end of February 2020, bonds held by overseas investors under depository of CCDC reached RMB 1.95 trillion, representing 94.5% of the total overseas bond holdings in the CIBM (or 85.7% inclusive of NCDs).
The launch of these flexible settlement services reflects CCDC's customer-focused concept of “integrated service system, one-stop service and all-around solution” and its practical action of promoting CIBM opening-up and upgrading the CCDC international services. Moving forward, CCDC will keep our mission firmly in mind, dedicating ourselves to providing convenient, efficient and professional services for overseas investors participating in the CIBM.