Chinese language cash brokers minimize information feeds to distributors after regulator ban – merchants
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SHANGHAI — Chinese language cash brokers minimize information feeds to distributors on Wednesday after a ban from regulators, merchants mentioned, sending contributors within the nation’s $21 trillion bond market scrambling for workarounds as Beijing tightens its grip on information.
The brokers, which embody the joint ventures of Tullett Prebon and NEX Worldwide Ltd, had been instructed on Tuesday to droop the information feed enterprise by Chinese language regulators, sources instructed Reuters on Tuesday. Regulators cited information safety issues, and the truth that cash brokers usually are not licensed to feed information to third-party distributors, the sources mentioned.
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Merchants mentioned that beginning on Wednesday morning, bond value quotations from the cash brokers, which additionally embody ventures of BGC Companions, Central Tanshi and Compagnie Financiere Custom, couldn’t be displayed on monetary terminals together with qeubee, Wind and Dealing Matrix.
Chinese language bond merchants have closely relied on these information platforms for real-time value quotes, so the sudden information ban despatched merchants scrambling to affix QQ or WeChat messaging teams for value data.
“The change has made buying and selling very inefficient,” mentioned a dealer at a overseas financial institution. “The best way different merchants quote the worth within the messaging teams, the worth would expire earlier than I discover my counterparty.”
The market disruption from the ban, almost definitely the federal government’s first transfer to tighten information administration since saying plans to arrange a nationwide information bureau, underlines how tighter screws might deliver recent uncertainty to enterprise operations.
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In the course of the previous few years, Beijing’s tighter scrutiny of information safety has ravaged the enterprise of Didi World, and virtually halted abroad listings by Chinese language firms.
The information feed ban reveals how “beneath China’s more and more conservative insurance policies, safety is extra necessary than effectivity,” mentioned an government of an affected vendor, who declined to be recognized due to the sensitivity of the matter.
Neither the cash brokers nor their regulator, the China Banking and Insurance coverage Regulatory Fee (CBIRC), have responded to requests for remark.
OTC TRADING
In contrast to inventory buying and selling, which takes place in centralized alternate markets, bond buying and selling in China is essentially executed in an over-the-counter market the place merchants determine counterparties by value quotations.
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As key gamers within the bond ecosystem, information distributors similar to Wind Data Co, Sumscope Data Know-how Co and Dealing Matrix consolidate real-time bond quotes from cash brokers, lubricating buying and selling.
Some distributors’ platforms had clean pages the place costs was once contributed by cash brokers, in response to screens seen by Reuters.
Many bond merchants say the information feed minimize affected their jobs and made buying and selling much less environment friendly.
“We didn’t commerce something this morning,” mentioned one dealer who declined to be recognized, including that extra merchants might make the most of iDeal, an prompt messaging platform vetted by China International Alternate Commerce System (CFETS).
One other dealer at a overseas financial institution mentioned: “I haven’t been in a position to be a part of any personal messaging teams as a result of compliance points. So the present scenario appears like buying and selling blindly.”
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Key information distributors have been dashing to roll out various companies to unravel merchants’ complications.
Wind mentioned on Wednesday that it was launching two main schemes to supply real-time direct bond quotations: WQ and WM. The bond citation operate interface WQ permits merchants to make and handle quotations, whereas WM, or Wind Messenger, permits merchants to speak and negotiate on bond quotations.
Dealing Matrix mentioned it has launched a platform for merchants to get the newest value data from bond market makers on the Shanghai Inventory Alternate. (Reporting by Winni Zhou, Li Gu, Jason Xue, Samuel Shen and Brenda Goh; Enhancing by Kim Coghill)
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