Anonymous bond auction business rules promulgated!Bond defaults increasing the beneficial activity

June 20, the 21st century Business Herald reporter was informed that China Foreign Exchange Trade Center, the National Interbank Funding Center has recently issued the "Notice on anonymous auction business debt" (Zhong Hui Jiao Fa [2018] No. 192 text), and with the relevant rules。Participating organizations should sign the "anonymous bond auction business investor risk Commitment Letter", aware and at its own risk trading, institutional commitment to comply with relevant regulations and industry guidelines。  According to article 192, anonymous auction business should meet bond applicable standards circulation in the inter-bank bond market, bonds, including but not limited to breach of contract, breach of contract under the influence of bonds, asset-backed securities and other illiquid secondary files Bonds。  Specific bond auction brought together by the dismantling interbank market centers intention to determine, from time to time hold anonymous auction。Participating organizations may submit an anonymous bond auction intention to Funding Center by mail, telephone, etc.。  Auction day, the bond auction is divided into two-way quotes anonymous and centralized bidding in two stages, each stage duration of publicity to prevail Funding Center。  Stage two-way prices, can not match the deal。Participating organizations according to their needs, to fully consider the factors that affect the pricing of the underlying bond issue two-way prices within a certain range of spreads, real-time price quotes show。  Two-way quotes phase ends, centralized auction trading system to determine the stage of the price range, price range Jiaoyou located between the purchase price and the selling price Jiaoyou。  Centralized bidding stage, within the participating institutions can be determined in a two-way quote stage price range offer, trading system based on price and time priority, in order to calculate the maximum matching amount principles of unified price, after determining the blacklist trading counterparties。  In terms of risk control, the provisions of article 192, by an anonymous bond auction deal of participating agencies, within 5 working days with the same counterparty must not only on the same underlying bond directly or indirectly, reverse transactions (reverse transaction is counterparty between the parties on the same bonds, after buying one of the first to sell, sell before buying behavior after the other。Reverse the transaction except by an anonymous auction reached)。If there are needs, stamped instructions should be provided to the necessity NILBC。  A trader at state-owned big firms told reporters in the 21st Century Business Herald, the increase in bond defaults in the background, the file is conducive to breach of bond trading, bond liquidity increase。  In its view, the current agencies are reluctant to risk bonds traded in the open market, first, agencies are reluctant to expose themselves; second, especially in large organizations have concerns: taking into account the market will wonder whether they sell the bonds in question (regardless of whether in fact there is a problem), as well as speculation that large institutions know in advance so the bad news lead to market panic selling。(Original title: anonymous bond auction business rules promulgated!An increase in bond defaults under favorable liquidity) (Editor: DF353)

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