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Shanghai Stock Exchange To Test Platform Of Fixed Income Products

Date 24/05/2007

Upon initial demonstration and investigation, the "Comprehensive Electronic Platform of Fixed Income Securities" of the Shanghai Stock Exchange (SSE) has recently completed essential development and simulative operation. The system's overall online testing is scheduled in the middle of June. After launch, the platform will become one of the main trading systems for fixed income products on the SSE market.

The "Electronic Platform", with an aim to establish a fixed income market suitable for institutional participants, will introduce the market marker mechanism of primary dealers to improve the bond trading efficiency and the market liquidity. Besides, as a wholesale platform with high efficiency and low cost for fixed income products including the benchmark treasury bonds, debentures and asset-backed securities, it will also map out the true and effective bond yield curve.

To ensure its safety, the electronic platform adopts the digital certificate issued by the SSE CnSCA. Traders cannot visit the system for operation unless they hold the digital certificates. To acquaint the market participants with functions and features of the electronic platform as soon as possible, the SSE issued a notice today to all innovative and standard securities companies, fund management companies, insurance assets management companies and institutions with special seats of treasury bonds, requiring them to handle the digital certificates of the electronic platform during May 21 to 30 before participating in the overall online testing in the middle of June.