Trading Specifications

Definition of Instrument

Outright repo refers to a trading business where in time of a bondholder (positive repo party) selling bonds to a buyer (reverse repo party), the two parties at the same time agree upon that when at a future date such a positive repo party shall buy from the reverse repo party the equal number of the same-type bonds at a pre-defined price.

Trading Mechanism

Bilateral trading

Terms

The terms of outright repo range from 1 day to 365 day. Through the trading system, the trading volume and price of outright repo is published as a total of 11 terms including 1-day, 7-day, 14-day, 21-day, 1-month, 2-month, 3-month, 4-month, 6-month, 9-month and 1-year

Trading Hours

T+0: Beijing time 9:00-12:00 am, 1:30-4:50 pm, 

T+1: Beijing time 9:00-12:00 am, 1:30-5:00 pm, 

excluding Chinese statutory holidays.

Market Participants

Commercial banks and its authorized branches, rural credit cooperatives, urban credit cooperatives and other deposit-taking financial institutions, insurance companies, securities companies, fund management companies and their managed funds, portfolios, insurance products, financial companies and other non-bank financial institutions which all have bond trading qualification, and foreign-funded financial institutions which conduct RMB business, can all enter into the market for transaction.

Method of Clearing & Settlement

The two trading parties, at the specified date, shall handle gross settlement as per deal ticket. Depository bond settlement is carried out through China Central Depository & Clearing Co., Ltd., while funds settlement is conducted through the China National Automatic Payment System of PBC. Three types of settlement, namely "payment after bonds", "bonds after payment ", and "DVP", are available.