To reinforce business and technological management, the Shanghai Stock Exchange (SSE), according to the launch arrangement of the New Generation Trading System, worked out the "SSE Detailed Rules for Implementation of PBUs". Hereby it makes announcements on relevant issues to all member units, all SSE-seat institutions and fund management companies. The rules are to be implemented as of May 8, 2007. On May 8, seats and Participants Business Units (PBUs) will be switched. After that, trading units will assume all trading jurisdiction and corresponding functions of the original seats.
The rules, with 5 chapters and 34 articles, include general rules, function and configuration, establishment, change and cancellation, management and supplementary articles. After the implementation of the rules, new participants cannot apply for the establishment of PBUs before obtaining one or more SSE seats. According to the rules, only after establishing trading units can trading participants participate in securities trading on the SSE market. The SSE provides one general management unit for all participants for data exchange of all subsidiary PBUs and supervision over trading business. Participants shall not transfer trading units.
After participants establish trading units, the SSE, according to their business license, trading jurisdiction and application, sets the function and attribute of PBUs, including business mode, trading products, trading function and the qualification of primary dealers. When participants need change, increase or decrease business mode, trading products, trading function and the qualification of primary dealers of their trading units, they should apply to the SSE. The SSE grants change to qualified participants.
As to management, the SSE can, according to relevant regulations and change of business qualifications of participants, adjust PBUs' trading jurisdiction and service function including business mode, trading products, trading function, the qualification of primary dealers and application speed in connecting service system. The SSE can suspend all or some trading jurisdiction or service functions of PBUs for participants with severely abnormal trading behaviors or other violations of rules.
Besides, to guarantee the link-up and smooth transition of all business after the release of the rules, the SSE made an announcement on issues related to implementation of the rules today. According to the announcement, after the implementation of the rules, all trading jurisdiction and corresponding functions of the original seats will be switched to PBUs of participants all at once. After switch, PBUs will assume all trading jurisdiction and corresponding function of the original seats. The switch time of the seats and PBUs is May 8 when the SSE will carry out integrated switch of PBUs and seats with the current 5 codes. After the switch, the SSE will replace such businesses as trading management and information publication of the original seats with the corresponding businesses of PBUs.
According to the announcement, the switch also brings into flow velocity setup function of PBUs. SSE-seat members can obtain for free corresponding flow velocity volume in the current offer system. The free flow velocity volume equals to the total number of members' seats multiplying the standard flow velocity (presently 10 orders/second). Members who need adjust flow velocity setup for pooled trading can go through the current business procedures for flow velocity adjustment of the SSE.
