High Level Broker: The Market Has The Conditions To Launch T+0.

Investors' expectations for T+0 (intra day trading) are unexpectedly high.

As of 7 p.m. on May 24, 2010, the twenty-first Century economic report made a survey of whether A shares should reform the T+1 and the price limit system. A total of 42920 people participated in the survey. Among those who agreed to cancel the price limit, they agreed to disagree with each other. However, the number of people who agreed to reform the T+1 system of A shares reached 38134, accounting for 88.8%.

T+0 has no barrier.

A shares had implemented the T+0 trading system, but was abolished in 1995 and converted to T+1 trading system.

But the voice of the market for the T+0 trading system has been quite high. With the active preparation of two new businesses, stock index futures and margin trading in 2006, the T+0 trading system was once considered to be coming soon.

In the first half of 2006, stock index futures and margin trading were all pushing forward. Before June 2006, the preparatory group of CICC has been established, and the index of contract index of stock index futures has been basically determined.

On the other hand, the speed of margin trading is also advancing rapidly. In June 30, 2006, the SFC issued the "management method for securities financing and securities lending pilot", which has been implemented since August 1st of that year.

Stock index futures and margin trading have an inherent requirement, that is, changing the trading system of T+1, because the system is logically inconsistent with the two new businesses.

During this period, a change in rules triggered speculation in the market.

In May 15, 2006, the Shanghai and Shenzhen Stock Exchange issued new trading rules respectively. The most striking feature of the trading rules is that in the third section, the first section of securities trading stipulates that "investors buy securities not to be sold before delivery, except for the implementation of a revolving paction".

This provision was not mentioned in the Shenzhen and Shanghai stock exchange rules issued in August 31, 2001.

The market has interpreted this understanding as a trading rule level and has left room for the T+0 paction. In addition, the provisions of the original securities law concerning the revolving trading within the day have been abolished in 2005. The introduction of the T+0 trading system has no obstacles at the level of laws and regulations.

The expectation that the T+1 trading system is about to change will become a focus of the market in July 2006. The market thinks that the T+0 trading system will be launched as a supporting policy related to stock index futures and margin trading. There are even rumors that the T+0 paction will become a reality in August 2006.

Finally, T+0 did not launch as scheduled. Stock index futures and margin trading were all ready until 4 years later.

But stock index futures and margin trading have all been launched. T+0 trading system, which was originally expected to be a supporting policy, has not been moved.

A senior broker believes that if it does not launch T+0, the introduction of stock index futures is to encourage everyone to go short, the reason is very simple, stock index futures are T+0, spot is T+1, T+1 means that after buying, it can not be sold on that day, in this case, whether it is for the investors or investors, the seller is safer than the buyer in the stock market.

In addition, this person believes that the inconsistency of spot and futures trading systems to the market will lead to too much empty power, which will also lead to huge rent-seeking space. Now we have more discussions on this aspect, that is, managers with large funds can first empty themselves on stock index futures, and then drop a large number of chips in the spot market, so as to make their futures open positions profitable.

"Now the market is totally different from the market before 1995. The main purpose of the cancellation of T+0 in 1995 is to limit the excessive speculation in the market, but now the market has changed a lot. Now the total market capitalization of the two cities is several times that of 1995, and it has the conditions to push T+0 forward."

The above appeals.

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The realization path of T+0

The voice of T+0 is not limited to the civilian level. In fact, regulators have also discussed this.

At the beginning of 2007, the Shenzhen and Shanghai exchanges published research reports, which explored the T+0 paction from two aspects of overseas system reference and domestic investor survey.

The Research Report of the Shenzhen Stock Exchange, entitled "overseas experience and Enlightenment in the revolving trading of credit trading accounts" reveals why the T+0 trading system is difficult to produce: "there is no denying that there are still differences in views on the rotation trading.

It is generally believed that T+0 trading helps to activate the market. However, in view of the risk of "too hot a market" caused by the early development of the stock market in China, the management still has a lingering fear of resuming the trade.

Especially after the implementation of warrant trading in 2005, the understanding of the market effect of rotary trading has been deepened.

Therefore, despite the gradual improvement of the basic system in the securities market and the gradual improvement of the market performance, the resumption of trading is still in the research stage.

The concerns of regulators are in sharp contrast to investors' appeals.

In a research report, which was completed in early 2007 by the SSE and Guotai Junan, entitled "the mechanism of differentiated trading under the new generation trading system", we conducted an investigation of institutional and individual investors through 23 regional marketing headquarters and 5 branches of Guotai Junan, and found that investors generally expressed a high degree of recognition of the intra day trading of warrants. "Most investors believe that priority should be given to ETF, index stocks and SME boards for intra day trading, and we hope to implement intra day trading in all trading varieties as early as possible."

Therefore, the report believes that the implementation of intra day revolving trading helps to activate the market, improve the performance of brokerages, help to improve the pricing efficiency of the market, and provide investors with more flexible and convenient means of investment. Therefore, it is advisable to carry out intra day trading in all securities listed on the exchange.

The reports of the two exchanges give specific solutions for the implementation of the T+0 trading system.

The recommendations of the Shenzhen stock exchange research report refer to the prevailing practice in overseas markets, which only allows investors to turn trading and margin trading through margin trading margin accounts. They are only limited to stocks that can be financed by margin trading, limiting the multiple of the total daily paction amount equivalent to the net guarantee value and increasing the cost of excessive rotation of investors. For example, setting the alarm index of the total turnover amount of the day equivalent to the net value of the margin, once the multiple of a account exceeds the predetermined threshold, it will increase the number of charges or the paction ratio of the account, and make special paction arrangements for the stock with a high turnover rate.

Unlike the Shenzhen Stock Exchange's research report, the Shanghai Stock Exchange's report mainly hopes to achieve T+0 pactions step by step.

The Shanghai Stock Exchange's report suggests that we should adopt a step-by-step strategy for intra day trading of stocks, closed-end funds and ETF. For those with good liquidity and high stability, such as ETF and index stocks, we must carry out intra day trading in rotation, until the ratio of institutional investors reaches a certain level, and the investment concept is mature to a certain extent. We will carry out trading within days with a low liquidity and fluctuating varieties, and finally realize the intra day trading of all securities.