On the way to expand the capacity of treasury bond futures and increase the capital of 40 billion yuan of bank guarantee into the market

category:Finance
 On the way to expand the capacity of treasury bond futures and increase the capital of 40 billion yuan of bank guarantee into the market


Dongzheng Derivatives Research Institute estimates that the first five banks will bring about an incremental face value of about 4.3 billion yuan, with positions of about 4000 to 5000. If the capital increment brought by the opening of all banks and insurance companies is estimated to be about 40 billion in the future, the Treasury bond futures market will be greatly expanded.

Market entry of Bancassurance funds

As an interest rate derivative tool, treasury bond futures can actively avoid interest rate risk, price discovery, promote the issuance of treasury bonds and optimize asset allocation. However, different institutions have different degrees of participation in treasury bond futures.

According to the analysis of the financial futures team of CITIC futures research department, due to policy restrictions, public offering products can only participate in treasury bond futures for hedging purposes; according to different trading preferences, proprietary treasury bond futures have a high degree of participation, but broad fund participation is relatively limited.

When the bank insurance funds enter the Treasury bond futures market, the banks and insurance institutions can adjust the portfolio duration and achieve the asset management objectives by using the low guarantee level and high liquidity of the Treasury bond futures. The introduction of banks and insurance institutions, in turn, can improve the pricing capacity of Treasury futures. Luo Xufeng, chairman of Nanhua futures, told the first financial reporter.

For banking and insurance institutions, the use of low-cost and high leverage derivatives such as treasury bond futures and follow-up options by commercial banks and insurance institutions can greatly enrich their product structure, reduce capital costs and enhance the stability of their products. On the other hand, they can also greatly enhance the depth and breadth of the financial market, so as to make up for the fact that Chinas financial market will eventually become the worlds major financial market Big short board. Luo Xufeng said.

40 billion capital increment on the way

China Financial Futures Exchange (hereinafter referred to as CFE) said that commercial banks and insurance funds are important participants in the bond spot market, accounting for about 70% of the total amount of custody in the inter-bank bond market. Its participation in the Treasury bond futures market will help to meet the interest rate risk management needs of institutions, enhance the operational stability, and further enhance its ability to serve the real economy.

It is generally expected that according to the current market volume of banks and insurance holding cash bonds, about 40 billion yuan of incremental funds will successively participate in treasury bond futures trading, but only about 5 billion yuan may be involved in the initial stage.

According to a person from the east securities derivatives research institute to the first financial reporter, it is expected that the incremental face value of the first five banks will be about 4.3 billion, which will not have a great impact on the fluctuation of treasury bond futures price.

On February 21, the first five banks were approved as pilot institutions to participate in the Treasury bond futures market, including industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, construction bank and Bank of communications.

The trading attributes of the five major banks are not strong, and the dependence of the profit model on bond trading is low. Although it is not ruled out that small fluctuations and the impact of sentiment may occur in the short term, it is expected that funds will not rush in after the opening up. However, this advantage is that the opening of the pilot will not cause the sharp fluctuation of the Treasury bond futures market. Some small and medium-sized banks with stronger trading attributes are expected to be more active in the participation of treasury bond futures. With the gradual opening of the market, small and medium-sized banks can enter the market If the capital increment brought about by the opening of all banks and insurance companies is estimated to be about 40 billion in the future, it will make the Treasury bond futures market expand significantly, said the above analysis

In addition, the relevant head of CICC has said that commercial banks and insurance funds will not occupy the stock market funds and have no direct impact on the stock market. When the market is in an extreme situation, treasury bond futures can provide institutions with effective interest rate risk hedging tools, which helps to ensure the stability of the market.

How to participate

First financial reporter learned that when banks and insurance participate in treasury bond futures trading, futures companies are also actively preparing for trading, settlement, it, risk control, research and development, customer service, asset management and other aspects.

However, the specific way of participation of Bancassurance institutions has not been clear. Whether to participate as a member or through futures companies has attracted the attention of the industry.

Li Mingyu, a researcher of new lake treasury bond futures, told the first financial reporter that there are two ways for bank guarantee institutions to participate in the Treasury bond futures market. One is that bank guarantee institutions directly become members of CICC and have seats to directly participate in the market. Another way to participate through futures companies is to open an account in futures companies like ordinary institutional investors and participate in trading through the seats of futures companies, that is, to hand over funds to futures companies.

As for the advantages and disadvantages of the two ways of participation, if through futures companies, the amount of bank insurance funds is large, it is estimated that most of the capital funds of futures companies do not meet the conditions, so they need to supplement the capital funds substantially. But if bancassurance participates in its membership and builds relevant system equipment, its cost is not small. Li Mingyu said to the first financial reporter.

Shang Fang, a treasury bond analyst at Everbright Futures Research Institute, told reporters that the company is ready to welcome banks and insurance into the market, All systems and services are in follow-up. It is expected that the first batch of pilot institutions may participate in membership. Direct membership participation can save the Commission of futures companies, but it requires facilities and personnel of its own risk control, technology, settlement and trading system. Luo Xufeng said that for futures companies, the participation of more institutional groups means the improvement of the liquidity and scale of the futures market, and futures companies can also cooperate with banks and insurance institutions more widely and in-depth. At the same time, large financial institutions, such as commercial banks, actively participate in treasury bond futures trading, which can increase the scale of treasury bond delivery, activate treasury bond assets and improve bond liquidity, so as to better serve the real economy. However, the introduction of banks and insurance institutions into the bond futures market will enable all kinds of large financial institutions, including overseas financial institutions, to actively participate in the Chinese futures market, which will lead to the further expansion of the Chinese futures market. Source: First Financial Editor: Zhong Qiming

Shang Fang, a treasury bond analyst at Everbright Futures Research Institute, told reporters that the company is ready to welcome banks and insurance into the market, All systems and services are in follow-up. It is expected that the first batch of pilot institutions may participate in membership. Direct membership participation can save the Commission of futures companies, but it requires facilities and personnel of its own risk control, technology, settlement and trading system.