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Bond Connect Provides Special Settlement Cycles and Recycling Settlement

30 March 2020

Bond Connect scheme advanced to offer services of special settlement cycles and recycling settlement to streamline the access of China interbank market and to cater for trading and settlement needs of offshore investors. The relevant guidance and procedures have been updated on the website of BCCL.

Special Settlement Cycles
Special settlement cycles allow investors across different regions in the world facing different local holiday arrangements to settle trades on T+4 and beyond, mitigating operational risks. Offshore investors can now apply for special settlement cycles through the Bond Connect Backup Trading Service of BCCL, while the subsequent settlement procedures remain consistent with the usual protocol. Please refer to the backup trading guidance here.

Recycling Settlement
Through the recycling settlement service, investors can opt for recycling settlement within the next three business days following the original contracted settlement date by applying to CCDC or SHCH should a trade fails to settle on schedule.

The trading parties should provide the recycling settlement details, if any, along with the reporting of settlement failure. If the decision to pursue recycling settlement is made post the reporting of the settlement failure, or there is any change in the relevant information about recycling settlement, the trading parties should resubmit the final details promptly.

Investors can find more details in the Settlement Failure Procedures here.

For related enquiries, please contact us at / (852) 2327 0732.