March 30, 2019: workers assemble LED lights at a factory in Yushan county in central China’s Jiangxi province (AP Photo)
CSRC proposes DVP settlement for institutional stock traders
China’s securities regulator will introduce Delivery Versus Payment (DVP) for institutional traders to bring the country’s securities settlement system in line with global practices. On January 14, the China Securities Regulatory Commission (CSRC) published the draft Measures for the Administration of Securities Registration and Settlement (证券登记结算管理办法 (征求意见稿)) for public consultation until February 13.
DVP refers to the global settlement practice whereby stocks and cash are settled simultaneously. The CSRC said that the reform will further attract overseas funds into the Chinese market, and also reduce the minimum payment ratio of settlement reserves for market participants.
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