A few days ago, the China Securities Regulatory Commission issued a draft opinion on reducing public offering transaction commissions, which stipulates that managers with a management scale of more than 1 billion yuan in equity ** will be reduced from 30% to 15% for the total annual transaction commission for ** transactions through a single brokerage, except for the ** that adopts the brokerage trading model.
Industry insiders believe that the clause is expected to promote the development of the bond settlement model, although the bond settlement ** can also choose a number of brokerages to cooperate, but the distribution ratio is more concentrated, the current bond ** scale of the top five equity **, 100% of the transaction commission to a single cooperative brokerage. Under this bond settlement model, if the first-class product wants to successfully complete the issuance and reach the expected scale, it has higher requirements for the channel sales ability of a single brokerage.
The scale of the bond settlement is still small
There are two settlement modes for public offering to participate in on-exchange transactions: brokerage trading mode (corresponding to the securities settlement mode) and rental trading unit mode (custodian bank settlement mode).
Brokerage China reporter learned that under the brokerage settlement mode, the transaction instructions are first transmitted to the brokerage system by the company, rather than directly sent to the exchange, and the brokerage real-time capital verification of the trading behavior of the product, and assume the monitoring responsibility of the abnormal trading behavior of the public offering, and then the transaction instructions arrive at the exchange from the brokerage side.
In the original custodian bank settlement model, the public offering ** rents the trading seat of the brokerage company for trading, and the custody and settlement are undertaken by the custodian bank. The brokerage settlement mode is different, the brokerage is no longer only the role of "channel", the brokerage is the main body of settlement and settlement, and can participate in the whole process of trading, custody and settlement.
Since 2017, the pilot program has been regular, and since then, it has grown rapidly, but it is still small. According to wind statistics, as of the end of November 2023, there are only more than 900 bonds, and the corresponding asset scale is about 700 billion yuan, accounting for 25%。
Not subject to the 15% ratio
Bonds** are not subject to the upper limit of the trading commission distribution ratio, which was not subject to the 30% cap in the past and will not be subject to the 15% limit in the future.
According to the statistics of Choice, the top 5 equity types in terms of the scale of bond settlement, 100% of the cooperative brokerages have obtained the ** transaction commission, and the trading volume is paid to the business department immediately.
In the past, the practice of guiding sales with transaction commissions has left a lot of sequelae, such as public offerings that may promise to increase the trading volume to the agency brokerage in order to support the sales scale of a certain **, and there are often unsettled arrears. In the future, if the incentive to give brokerage trading commissions under the bond settlement model increases, without violating the interests of investors, it will also promote channel resources to be inclined to certain ** products, which is equivalent to the deep binding of ** and brokers.
A brokerage company's institutional business sales director believes that even if the public offering of ** products has outstanding investment performance, it also needs sales to help expand the scale, and the bond settlement model can better balance the interests of all parties.
Under this bond settlement model, if the first-class product wants to successfully complete the issuance and reach the expected scale, it has higher requirements for the channel sales ability of a single brokerage, and the past cooperation cases are especially dominated by the head brokerage. According to Choice, the top 5 equity categories such as Ruiyuan Value Growth, as of the end of November, were 2337.7 billion yuan, the brokerage company that chose to cooperate is CITIC**;Zhonggeng value pilot, ** scale 995.6 billion yuan, the brokerage company that chose to cooperate is Huatai **.
The asset management subsidiaries of securities firms prefer securities settlements
At present, the ** products of the asset management subsidiaries of securities companies are more inclined to choose the bond settlement model, and the parent company can obtain 100% of the transaction commission, exempted from the 30% limit, and it is estimated that it can also be exempted from the 15% limit after the revision of the draft opinion.
Choice data shows that among the 15 asset management subsidiaries of securities companies with public offering licenses, 9 have 100% of the trading seats in the parent company, and 5 have more than 30% of the parent company's seats, and only the Orient Securities Asset Management, which has the third largest transaction amount, corresponds to 26 seats in the East86%, which is also close to the upper limit of 30% trading commission for a single brokerage company in the public offering**.
In addition, the preference for the bond settlement model is the small and medium-sized public offering**, in order to obtain more channel resource support, the willingness to choose the bond settlement model is stronger, and the enthusiasm is higher. However, in the future, large-scale public offerings may also follow this practice, thereby promoting the development of the bond settlement model, and brokerages are expected to provide full-chain trading, custody and settlement services for more**.
*:*Times.