LongRiverTech Consulting：Overview of Direct Financial Market Connectivity and Exchange Access
Direct connection of financial markets and access to exchanges are important components of the development of financial technology. They have achieved efficient connection and information exchange between all participants in the financial market through technical means, and promoted the interconnection and business development of the financial market. The following is an overview of direct connection of financial markets and access to exchanges:
1. Direct connection of financial markets
Direct connection of financial markets refers to the direct connection of financial institutions, trading platforms, clearing institutions, etc. through technical means to achieve real-time transmission and processing of data such as transaction instructions, settlement information, and fund transfers. This connection method reduces the intermediate links, improves transaction efficiency and security, and reduces operating costs.
Main features:
1. Efficiency: Direct connection reduces the intermediate links of data transmission, improves the processing speed and settlement efficiency of transaction instructions.2. Security: Through encryption technology and security protocols, ensure the security and integrity of data transmission.3. Flexibility: Support multiple transaction modes and business scenarios to meet the needs of different financial institutions and investors.
Application examples:
Interconnection between the interbank bond market and the exchange bond market: Through direct system connection, the connection between the two market infrastructure institutions is realized. Investors can "access one point" to participate in bond transactions in the two markets without bilateral account opening (Source: "Interbank Bond Market and Exchange Bond Market Interconnection Business Interim Measures").
Direct connection between the supply chain financial platform and the Shanghai Bill Exchange: For example, the supply chain technology platform of Tonghui Capital Investment Group, a holding subsidiary of Shandong Hi-Speed Group, has promoted the upgrading and development of the supply chain financial system by directly connecting to the Shanghai Bill Exchange (Source: Baijiahao).
2. Exchange access
Exchange access refers to financial institutions, trading platforms, etc., through compliance processes and technical means, access to trading venues such as stock exchanges and futures exchanges, and participate in the trading and settlement of various financial products.
Main process:
1. Application and review: Financial institutions need to submit access applications to the exchange and provide relevant qualification certificates and business plans. The exchange will review and decide whether to approve the access.2. Technical docking: After approval, financial institutions need to conduct technical docking with the exchange, including the integration and testing of trading systems, clearing systems, risk control systems, etc.3. Business development: After completing the technical connection, financial institutions can carry out related businesses in the exchange, such as stock trading, bond issuance and trading, futures trading, etc.
Notes:
Compliance: Access to the exchange must comply with relevant laws and regulations and the rules and regulations of the exchange to ensure the compliance of business development.
Security: Strengthen system security protection to prevent security incidents such as hacker attacks and data leakage.
Stability: Ensure the stability and reliability of the trading system to avoid transaction interruptions or data loss due to system failures.
III. The significance of direct connection and exchange access to financial markets
1. Promote the interconnection of financial markets: Through direct connection and access, market barriers are broken and the flow of funds and information between different markets is promoted.2. Improve transaction efficiency and security: Reduce intermediate links and manual intervention, improve the processing speed and settlement efficiency of transaction instructions, and reduce operational risks.3. Promote financial innovation: Provide financial institutions with more convenient and efficient transaction channels, which is conducive to promoting the innovation of financial products and services.4. Serving the real economy: Better serve the development of the real economy by optimizing the allocation of financial resources and improving the efficiency of financial markets.
To sum up, direct connection with financial markets and access to exchanges is one of the important directions of the development of financial technology. They achieve efficient connection and information exchange in financial markets through technical means, and promote the interconnection and business development of financial markets.