An Introduction to SD&C’s
Open-end Fund Services
Fund Business Dept.
China Securities Depository and Clearing Corporation
2012.5.31
Agenda
 Profile of the Fund Platform of SD&C
 Main Products and services on the Fund Platform
 Future Development Initiatives of the Platform
2
Profile of
the Fund Platform of SD&C
Features 1
 OCT.4, 2002 the Fund Platform of SD&C was launched
 A variety of participants making our system more flexible
and innovative
 Connecting channels
• the OTC
• the exchanges - SSE and SZSE
 A unified interface enabling participants to have easy access
to all services
3
Profile of
the Fund Platform of SD&C
Features 2
 Leverage of existing securities account system, clearing
& settlement system and communications network of
SD&C
 Main Services
•
•
•
•
•
Registration (TA services)
Investors account administration
Order processing (subscription, redemption, etc)
Clearing and settlement
Corporate actions processing
4
Profile of
the Fund Platform of SD&C
System Architecture Overview
SD&C Fund Platform
Customer
service
Fund management
companies
47
251 funds
330 others
172
Distributors
Commercial
banks
Securities
companies
Independent Selling
companies
Two connection channels
Subscription/Redemption
The OTC
The exchanges – SSE and SZSE
Direct selling of fund
management company
investors
5
Profile of
the Fund Platform of SD&C
Order Processing Overview
Distributor
Fund Management
Companies
SD&C
Shanghai Branch
Distributor
Distributor
SD&C
The Fund Platform
Order
Data routing
Confirmation
Report
Payment instructions
Cash settlement results
SD&C
Shenzhen Branch
6
Agenda
 Profile of the Fund Platform of SD&C
 Main products and services on the Fund Platform
 Future Development Initiatives of the Platform
7
Main Products and Services on the Fund
Platform
Overview
 Main products types
•
•
•
•
•
•
•
Generic open-end funds
Money market funds
QDII funds
LOFs on SZSE
Open-end funds on SSE
Cross-market ETF on SZSE
Other kinds of asset management products
8
Main Products and Services on
Platform
LOFs on SZSE - Features
the Fund
1
 Provided by SD&C and SZSE
 Including three kinds of transactions
• Subscription/Redemption through the OTC channel with
fund account, settled on the Fund Platform
• Subscription/Redemption through the trading system of
SZSE with security account, settled on the Fund platform
• Centralized trading on the trading system of SZSE with
security account, settled on Depository & Clearing system
of SD&C, Shenzhen branch
9
Main Products and Services on the Fund
Platform
LOFs on SZSE - Features
 Two kinds of fund shares
2
• Listed fund shares registered in Depository & Clearing system
of SD&C, Shenzhen branch
• OTC fund shares registered on the Fund Platform
 Inter-system custody transfer
• Each kind of shares can be transferred to another by intersystem custody transfer order
• Inter-system custody transfer is processed between the fund
account and the security account of the same investor
10
Main Products and Services on
Platform
the Fund
LOFs on SZSE - Order Routing
Fund Management
Companies
SD&C
The Fund platform
Other Distributors
Centralized trading
Subscription/Redemption through SZSE
Subscription/Redemption through the OTC
Inter-system custody transfer
Data routing and confirming
SD&C
Shenzhen Branch
D&C system
SZSE
Securities Companies
•The OTC channel
•The exchange channel on SZSE
11
Main Products and Services on the Fund
Platform
Open funds on SSE - Features
 Provided by SD&C and SSE
1
 Including two kinds of transactions
• Subscription/Redemption through the OTC channel with fund
account, settled by the Fund Platform
• Subscription/Redemption through the trading system of SSE with
security account, settled by the Fund platform
12
Main Products and Services on
Platform
Open funds on SSE - Features
the Fund
2
 One kind of fund shares but registered in two kinds of
accounts
• Registered in fund account
• Registered on the security account of SSE
 Inter-system custody transfer
• The shares registered on each account can be transferred to
another through inter-system custody transfer
• Inter-system custody transfer is processed between the fund
account and the security account of the same investor
13
Main Products and Services on
the Fund Platform
Open funds on SSE - Order Routing
Fund Management
Companies
SD&C
The Fund platform
Other Distributors
Subscription/Redemption through SSE
Subscription/Redemption through the OTC
Inter-system custody transfer
Data routing and confirming
SD&C
Shenzhen Branch
D&C system
SSE
Securities Companies
•The OTC channel
•The exchange channel on SSE
14
Main Products and Services on the Fund
Platform
Cross-market ETF on SZSE - Features
 Tracking CSI 300 index which consists of 300 stocks listed on
the Shanghai and Shenzhen stock exchanges
 The ETF shares traded on the SZSE
 Subscription/Redemption routed through the Fund Platform
with Shenzhen and Shanghai security accounts
 All transactions settled on Depository & Clearing system of
SD&C, Shenzhen branch
15
Main Products and Services on the Fund
Platform
Cross-market ETF on SZSE - Features
 Key features
• The Fund platform collecting Subscription/Redemption orders
• The Fund Platform verifying the unity of the investor’s Shenzhen
and Shanghai security accounts
• The Fund Platform assembling the locking/transferring orders of
all the component stocks
• The D&C system of Shanghai branch processing orders of the
component stocks listed on SSE
• The D&C system of Shenzhen branch processing orders of the
constituents listed on SZSE
16
Main Products and Services on
Platform
the Fund
Cross-market ETF on Shenzhen Stock Exchange - Order
Fund Management
Routing
Companies
③
SD&C
The Fund platform
②
SD&C
Shanghai Branch
②
④
SD&C
Shenzhen Branch
①
Securities
Companies
⑤
⑤
SZSE
Subscription/Redemption
Ordering
Constituent stock locking
and transferring
Data routing and
confirming
ETF shares registration
Centralized trading
17
Agenda
 Profile of the Fund Platform of SD&C
 Main Products and services on the Fund Platform
 Future Development Initiatives of the Platform
18
Future Development Initiatives of the Platform
 Develop more functions to meet customized demands
 Accommodate new fund products
 Upgrade IT systems to support safe, efficient and flexible
operations
 Provide more information services to system participants
19
Thanks！
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