◇ 本民众期货官网原载《民众国际期货》2023年8月刊
◇ 民众期货：钟言
◇ 民众国际期货：张民众期货官网 刘颖
Enhancing the Role of Collateral Management to Ensure the Steady Market-oriented Development
Zhong Yan
民众国际期货官网 As stated in the report to the 20th CPC National Congress， “China will reinforce the systems that safeguard financial stability， place all types of financial activities under regulation according to the law， and ensure no systemic risks arise”． Against the backdrop of the reform in financial regulation and market innovation， financial collateral， mainly bonds， as a high-quality risk and liquidity management tool， will be fully utilized to help intrinsically stabilize and incentivize the development of the financial market． 民众国际期货官网 The provision of collateral management services by the central securities depository （CSD） is an optimal arrangement that combines safety and efficiency， and has become a mainstream trend in the development course of international financial infrastructures． In the wake of the 2008 international financial crisis， global financial regulators， keenly aware of the importance of financial stability， have continued to strengthen collateral management， thus giving rise to a prevailing practice in which the CSD provides centralized and professional collateral management services． Such an arrangement can effectively eliminate the risk of collateral assets being misappropriated and realize look-through supervision． China Central Depository & Clearing Co．， Ltd． （CCDC） has been recognized as the world’s largest bond collateral management platform for many years and has established an all-encompassing service system that covers multiple levels and fields by providing third-party collateral management services in the financial market and getting connected to or partnering with a number of financial sub-markets． Globally， many international CSDs have also launched collateral management platforms one after another， giving play to the scale effect of centralized management． 民众国际期货官网 Third-party collateral will be better managed and utilized to play a greater role in reducing costs and increasing efficiency． In the international market， there have been such products and services as securities lending and tri-party repurchase （repo）， which were introduced relying on the third-party management mechanism． Domestically， CCDC has unveiled a general-purpose collateral management service， which saves investors the process of negotiating collateral through centralized and uniform management measures， improving transaction efficiency and cutting back-office operational costs for institutions． As the first standardized third-party collateral management product in China， the general-purpose collateral management service allows institutions to effectively streamline or standardize their existing pledged bond management processes， a prerequisite for utilizing assets more efficiently． Specifically， CCDC uses the fair and transparent ChinaBond valuations to implement the market-to-market strategy． In this way， it can realize real-time risk monitoring and optimal allocation of collateral assets， efficiently support risk management， and cover the needs of the market for security and efficiency． Looking into the future， CCDC will launch efficient and convenient tri-party repo services under the guidance of the competent authorities． 民众国际期货官网 New technologies will be used to empower collateral management more efficiently． CCDC has independently developed a bond collateral management system with core technology under its control and key functions intensively coordinated， which could effectively support the multi-level setting of collateral management parameters， monitoring of data on abnormally large-value transactions， etc．， realize differentiated and precise management of collateral， and ensure the security of the increasingly complex and diversified financial transactions． With the continuous innovation in the financial market and the ever-developing science & technology， automation and intelligence have become the global trend of collateral management， putting forward more demanding requirements for the integration of financial technology with business development． CCDC actively embraces emerging technologies to facilitate the cross-market application， cross-region connectivity， and cross-asset management of collateral management services． 民众国际期货官网 With the expansion of the global capital market， the development of the domestic financial market， and the enhanced interaction between the two markets， market participants are demonstrating stronger demand for third-party collateral management with each passing day． As one of China’s financial infrastructures strategically important to support the security and innovation of the financial market， CCDC gives full play to the institutional advantages possessed by a CSD to establish a fast-growing and high-quality collateral management platform with a high starting point． In the future， it will continue to march into more fields of collateral service， put in place a complete set of collateral-related systems and standards， and help the market well balance security and efficiency at a higher level．◇ Editors： Zhang Wen， Liu Ying
