Market Makers to Benefit from Reduced Fees

In a move designed to stimulate trading activity, the Central Government Bond Clearing House has unveiled a draft proposal to further cut settlement service charges for designated market makers. The initiative focuses on lowering operational costs for institutions that provide liquidity in China's interbank bond market.

Details of the Fee Reduction

The key change involves a deeper discount on settlement fees. Currently, market makers enjoy a 20% discount on standard fees for transactions concluded through their market-making activities. This discount will be increased to 25%. Eligibility for the reduced rate will be determined based on official market-making transaction data reported by the China Foreign Exchange Trade System, ensuring the benefit is accurately applied to genuine market-making operations.

Implementation Timeline and Strategic Goals

The new fee structure is scheduled for a future implementation period:

  • Effective Date: July 1, 2026
  • Expiration Date: December 31, 2028
This two-and-a-half-year window provides market participants with clear forward guidance. The primary objective of this policy is to enhance secondary market liquidity by making it more cost-effective for market makers to quote and trade bonds continuously, thereby improving the overall efficiency and depth of the market.