China Central Depository & Clearing Co. Ltd. will require traders to adopt delivery versus payment (DVP) settlement in all interbank bond trading from Dec. 6 to reduce risks, the 21st Century Business Herald reported Tuesday, citing an unnamed source. The central bank announced a three-month grace period for the implementation of the payment scheme in late August, in the wake of a series of scandals in the interbank bond market. DVP is a form of trade settlement in which securities and funds are exchanged simultaneously. Other forms of payment, such as payment after delivery and delivery after payment will no longer be allowed, the report said.
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