On the basis of summarizing domestic and foreign market practices and domestic investor demand surveys, the report makes a preliminary plan for the launching process of the differentiated trading mechanism of the Shanghai Stock Exchange under the upcoming new generation trading system.
The report suggests that more abundant and diversified order types such as stop-loss orders and multi-day valid orders should be introduced first. Diversified orders can provide flexible ways for investors with different risk preferences and willingness to trade, and also provide materials for institutional investors to build their own program transactions. In addition, it is suggested to implement the securities lending mechanism for SSE 50ETF, SSE 50 Index and SSE 180 Index, and other stocks are not allowed to borrow securities. Take warrants and SSE 50ETF as pilot trading varieties, and introduce strong primary dealers who perform stricter quotation obligations.
The report pointed out that supporting the differentiated trading mechanism is a significant advantage and feature of the new generation trading system of the Shanghai Stock Exchange. With the introduction of derivatives such as stock index futures and short selling mechanism, it will be more necessary to implement differentiated management for market participants. The new system will effectively control the risks of investors and the overall market and standardize the development of the securities market by setting different trading rights for different participants in three dimensions: products, trading licenses and trading-related services.