BEIJING, Dec. 19 (Xinhua) -- China Securities Regulatory Commission (CSRC), the sector regulator, will formally implement the delivery upon payment (DVP) reform as of December 26, 2022, reported Xinhua Finance on December 16.
CSRC said it started the DVP reform since the beginning of 2022 and year to date, preparations for the DVP reform had been in place.
Being a basic rule for securities registration and settlement, DVP is a universally adopted settlement principle on the international market, aiming to fend off principal risks during delivery of securities and fund.
When the existing transaction settlement rules are kept unchanged, delivery of securities and fund is connected via labelling the related securities and fund under the DVP reform with clear arrangement on default disposal.
CSRC said the DVP reform would help enhance the safety of settlement systems, further attract overseas capital to enter the China market and expand China's high-level institutional opening up. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
A single purchase
