BEIJING, Nov. 6 (Xinhua) -- Shanghai Clearing House (SHCH) announced Thursday that it will optimize services for domestic bond repurchase (repo) for financing foreign currencies with China Foreign Exchange Trade System (CFETS) as from November 16, reported Xinhua Finance, a Xinhua-run financial information platform.
The two meant to further facilitate institutions in participating in the type of business and related settlement services.
SHCH and CFETS will support delivery versus payment (DVP) by institutions in settlement of domestic bond repo transactions for foreign currencies fiancing and allow one to ten different domestic bonds as the target securities for a single transaction of outright bond repo for foreign currencies financing.
What's more, restricts on the first phase settlement date of domestic bond repos for financing foreign currencies are due to be removed by then and such services as bond valuation and settlement situations will be available on the CFETS.
The SHCH required institutions to take part in DVP settlement to apply to SHCH for obtaining permissions for DVP in domestic bond repo for financing foreign currencies and opening special settlement account for related type of foreign currency.
SHCH launched the domestic bond repo for foreign currency financing business in mid-December 2019. Under its updated guidance for the business, effective since Thursday, the domestic bond repo for foreign currency financing include pledged bond repo and outright bond repo for financing foreign currencies. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
A single purchase
