BEIJING, Dec. 28 (Xinhua) -- Chinese central bank, the People's Bank of China (PBOC) released a circular on December 25 to optimize market making rules for cash bonds traded on the interbank bond market to further improve market liquidity, reported Xinhua Finance, a Xinhua-run financial information platform recently.
PBOC said the circular would enter into force as from April 1, 2021, allowing financial institutions capable of related market making to conduct interbank cash bond market making business only after signing agreements with transaction platforms nodded by PBOC.
The Chinese central bank took the move after the State Council, the Chinese cabinet issued previously in September 2020 an announcement cancelling administrative approval for business running of interbank bond market bilateral quotes providers.
Besides, the circular also strengthens in-process and post-management, establish and enrich the incentive and restraint mechanisms concerning market marking on China's interbank bond market.
For next step, PBOC vowed to continue to work on improving the trading rules on interbank bond market to foster its healthy development. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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