The notice stressed that participants should strictly abide by the relevant provisions of the bond market, standardize bond trading on designated trading platforms, and may not conduct offline bond trading without reporting to the financial regulatory authorities in advance. A money brokerage company shall carry out various brokerage businesses in accordance with relevant regulations.
The Notice makes it clear that participants should sign trading contracts and related master agreements in accordance with the principle that substance is more important than form and relevant regulations. Among them, those who carry out bond repurchase transactions should sign a repurchase master agreement, and those who carry out bond forward transactions should sign a derivative master agreement. It is strictly forbidden to evade internal control and regulatory requirements through any form of "drawer agreement" or through disguised transactions or portfolio transactions.
Participants in the bond market shall register for pledge in accordance with the provisions of relevant laws and regulations when conducting pledged repo transactions. The maximum period for participants to conduct pledged repurchase and buyout repurchase shall not exceed 365 days. Through negotiation between both parties, the pledged repo transaction can be exchanged for bonds, and the buyout repo transaction can be delivered in cash and redeemed in advance.
The circular stressed that participants should strictly abide by the requirements of risk supervision indicators such as liquidity and leverage ratio set by the People's Bank of China and various financial supervision departments in accordance with the principle of prudent exhibition industry, and reasonably control the leverage ratio of bond transactions. In any of the following circumstances, the participants shall report to the relevant financial regulatory authorities in a timely manner.
First, the balance of self-operated bond repurchase or reverse repurchase funds of deposit-taking financial institutions (excluding development banks and policy banks) exceeded 80% of the net assets at the end of last quarter.
Second, in other financial institutions, including but not limited to trust companies, financial asset management companies, securities companies, fund companies, futures companies, etc. , the balance of bond repurchase or reverse repurchase funds exceeds 120% of the net assets at the end of last month.
Third, the balance of self-operated bond repurchase funds or reverse repurchase funds of insurance companies exceeded 20% of the total assets at the end of last quarter.
Fourth, non-corporate products with the nature of public offering, including but not limited to bank wealth management products and public securities investment funds that are publicly issued to an unspecified public, and the balance of funds being repurchased or reverse repurchase of bonds exceeds 40% of their net assets of the previous day. Among them, the balance of repurchase funds or reverse repurchase funds of closed-end operating funds and hedge strategy fund bonds exceeds 100% of their previous net assets.
Fifth, privately-placed unincorporated products, including but not limited to wealth management products, fund trust plans, securities, funds, customer asset management plans issued by futures companies and their subsidiaries, and insurance asset management products issued by banks to private banking customers, high net worth customers and qualified institutional customers. , in which the balance of bonds being repurchased or reverse repurchase funds exceeds 65,438+000% of its previous net assets.
The notice stressed that the People's Bank of China implements macro-prudential management of the bond market, dynamically adjusts the counter-cyclical leverage requirements of participants when necessary, and coordinates the financial supervision department to regulate the bond trading business.
All financial supervision departments should strengthen the supervision and inspection of the internal control system construction, bond trading norms and prudential level of leverage ratio of financial institutions and other bond market participants under their jurisdiction, and punish relevant illegal acts according to law. Strengthen information sharing, communication and coordination between the People's Bank of China and various financial supervision departments.
The notice is clear and will be implemented as of the date of issuance. Participants shall conduct self-examination and rectification of the internal control system in strict accordance with the requirements of this notice. If the rectification is not completed within one year, no new bond transactions may be conducted. For all kinds of bond transactions that do not meet the requirements of this notice, they can continue to perform according to the contract, but they cannot continue. At the same time, it should be reported to the financial supervision department and included in the table according to relevant requirements. If the relevant transaction scale, leverage, concentration and other indicators are not up to standard because they are included in the table, they will be exempted within one year.