SPB Exchange considering issuing DFAs for Chinese stocks

MOSCOW. June 29 (Interfax) - The SPB Exchange is considering issuing digital financial assets (DFA) for Chinese stocks by the end of 2023, SPB Exchange CEO Roman Goryunov told reporters.

"We are thinking about issuing digital financial assets for Chinese shares. I think that some kind of pilot project should definitely appear before the end of the year," Goryunov said.

The SPB Exchange also plans to launch trading in securities listed on the Hong Kong Stock Exchange in yuan by the end of the year.

"We are definitely moving and working in this direction. Another matter is that there is the rather excellent depository accounting system on mainland China, even from Hong Kong. Therefore, the direct model that we have for trading U.S., Hong Kong, and European securities is poorly applicable. Accordingly, we are specifically thinking about trading DFAs in Chinese securities. However, several securities priced in yuan should even follow the existing model, those traded in Hong Kong. Something should appear by the end of the year," Goryunov said.

The exchange does not have any plans to launch forex trading, Goryunov added.

The Central Bank of Russia (CBR) in June included the SPB Exchange in the register of information system operators in which digital financial market issuance may be executed.

At the first stage, the SPB Exchange plans to provide other organizations with its new information platform for the issuance and circulation of monetary DFAs, as well as hybrid digital rights (these include monetary DFAs and other digital rights simultaneously; for example, the possibility of supplying goods), the Exchange told Interfax at their press office.

According to current legislation, the exchange may be the operator of the information system in which the release of DFA is executed, but they must only be circulated on the platform that issued them. That is, there should be a separation of exchange trading and DFA trading.