The central bank formulated measures for the management of bond lending business in the inter-bank bond market and took effect on July 1

2022-05-08 0 By

On February 11, the People’s Bank of China formulated the Measures for the Administration of Bond Lending business in the Inter-Bank Bond Market, which will take effect on July 1, 2022.According to the measures, bond settlement service institutions should determine and publicize the scope of loanable bonds for centralized bond lending businesses, as well as the lending rates, performance guarantees, discount rates and replacement standards.The People’s Bank of China may, according to the needs of macro-prudential management, require the bond settlement service institution to evaluate and adjust the above business parameters.In case of default of bond lending, both parties of bond lending shall deal with it according to the relevant provisions of the main agreement, or apply for arbitration or file a lawsuit with the people’s court, and deliver the final result to the trading platform and bond settlement service agency before 12:00 of the next working day after the completion of the disposal and receipt of the effective arbitration or litigation judgment.In addition, when the balance of the same participant’s integration into the underlying bonds through bond lending exceeds 20% (inclusive) of the total amount of its own bonds under custody, or the integration balance of a single underlying bond exceeds 10% (inclusive) of the issuance of the bond, each increase of 5 percentage points,A written report and explanation shall be submitted to the trading platform and bond settlement service institution before 12:00 on the next working day.The measures also said that trading platforms and bond settlement services should timely, accurately and completely record data on bond lending transactions, registration, depositing, custody and settlement, establish and improve risk monitoring and early warning indicators, report to the People’s Bank of China, and copy the relevant regulatory authorities.Trading platforms and bond settlement service institutions shall, within 10 working days after the end of each quarter, submit to the People’s Bank of China a written report on the analysis of the operation of bond lending for that quarter.The following is the inter-bank bond market bond lending business management method “, article 1 for the purpose of regulating the inter-bank bond market bond lending business, protecting the legal rights and interests of market participants (hereinafter referred to as participants), increase liquidity in the market, according to the law of the People’s Republic of China People’s Bank of China “and other relevant laws and administrative rules and regulations, and these measures.Article 2 The term “bond lending” as mentioned in these Measures refers to the bond financing behavior in which the bond merging party provides a certain amount of performance guarantee, borroys the underlying bonds from the bond financing party, and agrees to return the underlying bonds borrowed on a certain date in the future, and the bond financing party returns the performance guarantee.Article 3 Participants shall be financial institutions or branches of foreign banks under the inter-bank bond market law, shall follow the principles of fairness, good faith and risk bearing, establish corresponding internal management systems and operating procedures, strengthen risk management and improve risk prevention mechanisms.If a financial institution participates in bond lending as an asset management product manager, it shall perform its entrusted management duties in accordance with the principles of good faith, diligence and responsibility.Where an ASSET management product manager borrows bonds, it shall have clear creditor’s rights and liabilities, have clear authorization and liability undertaking mechanism, and strictly fulfill information disclosure obligations.Article 4 The underlying bonds of bond lending shall be the bonds traded and circulated in the inter-bank bond market.Article 5 The bond incorporating party shall provide the agreed performance guarantee to the bond financing party.During the duration of bond loan, the market value of performance collateral shall meet the conditions agreed by both parties.Article 6 The term of bond lending shall be determined by the bond lenders and borrowers through negotiation, but the longest term shall not exceed 365 days.Article 7 During the period of bond lending, if interest on the underlying bond is paid, the bond incorporating party shall timely return interest on the underlying bond to the bond financing party.Article 8 The standards for bond borrowing fees paid by the bond issuer by the bond issuer by the bond issuer shall be determined by both parties through negotiation.Article 9 The transaction arrangements for bond lending shall comply with the relevant regulations of the inter-bank bond market.Bond registration and settlement institutions and custodian banks recognized by the People’s Bank of China (hereinafter referred to as bond settlement service institutions) shall be responsible for the settlement of bond loans and loans.Article 10 Participants conducting bond lending shall sign the master agreement for bond lending transaction recognized by the People’s Bank of China (hereinafter referred to as the master agreement).Article 11 concentrated bond lending business refers to the settlement services according to agreed with participants in advance, the bond settlement date participants bonds payable is not full specified amount, according to participants in the People’s Bank of China approved electronic trading platform (hereinafter referred to as the trading platform) of securities lending instruction, the trustee shall, in accordance with the unified rules matching with other participants,And the act of bond financing.After the centralized bond lending transaction is concluded, the bond settlement service institution shall transfer the relevant settlement data to the trading platform.A bond settlement service institution shall determine and publish the scope of bonds that can be loaned for centralized bond lending business, as well as the lending rates, the scope of performance guarantees, discount rates and replacement standards.The People’s Bank of China may, according to the needs of macro-prudential management, require the bond settlement service institution to evaluate and adjust the above business parameters.Before conducting centralized bond lending business, participants shall agree with the bond settlement service institution on matters related to performance guarantee management through an agreement.Article 12 the securities lending default, securities lending both sides should according to the relevant provisions of master agreement disposal, or apply for arbitration or bring a suit before a people’s court, and completed treatment, received effective arbitration or litigation referee the results of the working day before 12:00, would be delivered the final result and bond trading platform and settlement services.Article 13 When the balance of the same participant’s integration into the underlying bonds through bond lending exceeds 20%(inclusive) of the total amount of its own bonds under custody, or the balance of the integration into the single underlying bonds exceeds 10% (inclusive) of the issuance of such bonds, each increase of 5 percentage points shall beA written report and explanation shall be submitted to the trading platform and bond settlement service institution before 12:00 on the next working day.Trading platforms and bond settlement service institutions shall, in accordance with the regulations and authorization of the People’s Bank of China, publicly disclose bond lending information to the market in a timely manner, including but not limited to the relevant information conforming to the above conditions, and shall not leak non-public information or mislead participants.Article 14 The self-regulatory organization of the inter-bank bond market shall, in accordance with these Measures, formulate the bond lending master agreement and submit it to the People’s Bank of China for the record.Trading platforms and bond settlement service institutions shall, in accordance with these Measures, provide participants with default resolution and secure and efficient electronic trading and settlement services for bond lending, formulate relevant business rules and report them to the People’s Bank of China for record.Article 15 the trading platform, bond settlement service agencies should be timely, accurate and complete records of securities lending transactions, registration, depository, custody, clearing and other data, establishing and perfecting the risk monitoring and early warning index system, strengthen the data sharing mechanism, in accordance with the relevant report of the inter-bank bond market mechanism to complete data reported to the work arrangement,If any abnormal situation is found, start emergency handling procedures in time, report to the People’s Bank of China, and copy to the relevant regulatory authorities.Trading platforms and bond settlement service institutions shall, within 10 working days after the end of each quarter, submit to the People’s Bank of China a written report on the analysis of the operation of bond lending for that quarter.Article 16 The People’s Bank of China shall, in accordance with law, supervise and administer participants in bond lending business, self-regulatory organizations of the inter-bank bond market, trading platforms and bond settlement service institutions.Those who violate laws and regulations, these Measures and other relevant provisions shall be subject to administrative punishment by the People’s Bank of China in accordance with the Law of the People’s Republic of China on the People’s Bank of China and the Law of the People’s Republic of China on Administrative Penalties and other laws and regulations.Article 17 The self-regulatory organization of the inter-bank bond market shall exercise self-regulatory administration over bond lending business and take disciplinary measures against participants’ violations, so as to earnestly maintain market order.Any major problem discovered shall be reported to the People’s Bank of China in a timely manner.Article 18 The People’s Bank of China is responsible for the interpretation of these Measures.Article 19 These Measures shall take effect as of July 1, 2022.The Interim Provisions on the Administration of Bond Lending Business in the National Inter-Bank Bond Market (promulgated by Announcement No.15 of the People’s Bank of China (2006)) shall be repealed simultaneously.Article source: finance high grade content recommends good news!Luqiao is going to build a school here!The project land use planning has been approved……A dark horse!January dongguan property market transaction list out!Shangqiu issued an urgent reminder: these people please report immediately