With joint effort and preparation by CFFEX and China Central Depository & Clearing Co., Ltd. (CCDC), the treasury bond futures market witnessed the first Delivery vs. Payment (DVP) transaction on June, 6, 2017, which is a big step toward connecting TB futures delivery system to futures/spot market. The first delivery contains 19 TF1706 contracts, with delivery amount of RMB 19,444,905.14 Yuan.
CFFEX and CCDC signed an agreement on Jan 4 and issued business provisions to officially introduce the TB DVP mode. CCDC shall conduct simultaneous delivery for bonds and funds on the agreed delivery day for qualified buyer and seller based on the delivery match result provided by CFFEX. The DVP mode is expected to reduce delivery risk and improve bond market efficiency, deepening service and promote the functioning of TB futures market.
CFFEX and CCDC are the two core platforms connecting TB futures market and spot market. The DVP transaction this time is a close cooperation between CCDC and CFFEX, and the first all-electronic system connection, which enhances data processing and transmission, improves the connection between futures/spot market and helps build the financial market infrastructure.