People's Republic of China Financial Sector Assessment Program : CPSS-IOSCO Recommendations for Securities Settlement Systems and Central Counterparties
The Securities Settlement Systems (SSS) in the People's Republic of China (PRC) are organized around three different types of markets, which are the bond market, the corporate securities market, and the futures market. The China Government Dep...
| Main Authors: | , |
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/306561468011761432/China-CPSS-IOSCO-recommendations-for-securities-settlement-systems-and-central-counterparties-detailed-assessment-of-observance http://hdl.handle.net/10986/26544 |
| Summary: | The Securities Settlement Systems (SSS)
in the People's Republic of China (PRC) are organized
around three different types of markets, which are the bond
market, the corporate securities market, and the futures
market. The China Government Depositary and Clearing
Corporation Limited (CCDC) is the SSS as well as the central
securities depository (CSD) for bonds. The China Securities
Depository and Clearing Corporation Limited (SD and C) is
the central counterparty (CCP), SSS, as well as the CSD for
all instruments traded on the Shanghai Stock Exchange (SSE)
and Shenzhen Stock Exchange (SZSE). The four futures
exchanges have their own clearing and settlement
departments, which offer the function of a CCP. The CCDC, SD
and C, and Shanghai Futures Exchange (SHFE), Dalian
Commodities Exchange (DCE), and Zhengzhou Commodities
Exchange (ZCE) operate important securities and derivatives
settlement systems both, due to the large volume and value
of transactions and the fact that they support key financial
sector markets (interbank bond market, stock exchanges and
futures). The assessment of the bonds market-CCDC system
against the Recommendations for Securities Settlement
Systems (RSSS) concludes that the system observes (observed
or broadly observed) thirteen of the 19 recommendations,
being one not applicable. The assessment of the stock
exchanges-SD and C system against the RSSS concludes that
the system observes (observed or broadly observed) seventeen
of the 19 recommendations. The assessment of the commodities
futures markets-SHFE system against the Recommendations for
Central Counterparties (RCCP) concludes that the system
observes (observed or broadly observed) eleven of the 15
recommendations, being one not applicable. The present
document is the assessment of securities and derivatives
settlement systems in the PRC based on the recommendations
of the Committee on Payment and Settlement Systems (CPSS)
and the International Organization of Securities Commissions
(IOSCO) for RSSS and the recommendations of CPSS-IOSCO for
Central Counterparties (RCCP). The paper is divided into
following five parts: the first part gives general
information; the second gives information and methodology
used for assessment; the third part is securities and
derivatives settlement systems infrastructure overview; the
fourth part is main findings from the assessment with
international standards; and the fifth part gives
authorities' response. |
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