The T+0 System Wants To Try To Create A Private Sector Within The Company To Re Introduce The Intraday Strategy

The T+0 system in the A share market is never expected to be as close to reality as it is today.

In May 29th, the Shanghai stock exchange introduced the next step of the reform of the science and technology board. It mentioned that the market maker system would be introduced timely, and the single T+0 transaction should be introduced to ensure the liquidity of the market, so as to ensure the normal realization of the price discovery function.

In the industry's view, T+0's deregulation of the science and technology board is expected to prompt the development of the almost daily intra day trading strategy that has almost disappeared since 2015.

But there are also traders who believe that in addition to the system allows for the rotation transaction, there is still a need for the market to have a certain liquidity environment. In the future, whether the science and technology board can have relevant conditions remains to be observed. In addition, there are private organizations that do not exclude the T+0's deregulation process, and will also take appropriate supervision, wind control and investor appropriateness management measures to ensure the stability of the T+0 pilot. Step forward.

However, more private individuals still believe that the loosening of the T+0 mechanism is expected to help stimulate market activity as a whole, and to some extent, increase the liquidity premium of the science and technology board.

Death of rotary Trading

The loosening of the T+0 system is being formally discussed in the forefront of public opinion from internal discussions.

In the industry view, the biggest change brought by T+0 to the Chuang Chuang board market is to help enhance the price discovery function and promote market activity. On the other hand, it can boost the scale of intra day trading and foster a trading strategy in the day.

Swing trading strategy is not a new thing in the A share market.

Twenty-first Century economic report reporter learned that before 2016, many private institutions had engaged in the T+0 operation through the margin trading mechanism attached to the rotating trading space.

Under the T+0 mode of margin trading, investment institutions can make profits in the two directions over the short term through the "buy spot and margin selling" and "margin selling buy spot" in the same day.

Under this mode, traders will seize the opportunity again and again during the day, and the stocks they invest will never stay overnight in their positions.

"If it's T+1, the significance of the night's vote is that Bo exceeds 10% of a single day's gains, but our strategy itself is to use the number of transactions to achieve the amplification of the single day income, so it's meaningless to stay overnight." A trader who made the T strategy told the twenty-first Century business news reporter, "other funds are all leveraged, the more the number of intra day transactions, the more cost-effective. But if the overnight risk is great, some tickets may still be suspended."

"The earliest use of this intraday strategy is actually a group of traders who make us stocks. Some private employers will hire young traders who have trading feelings to participate in it, and give them a certain amount of trial. If the performance is good, they will increase their quota. The final result is that the scale of the management of some excellent players is increasing." "Some people are starting to do their own work," said a private equity firm in Shanghai. "However, when doing this strategy, the plate usually carries a lever."

In fact, in 2015, when the A shares were exceptionally strong, some private companies took advantage of the strategy. The outstanding post-90s traders at that time once reached a monthly bonus of 100 million, and of course, the strategy itself was also an extremely cruel field.

"To do in the day is rather cruel. It is a pure law of the jungle. If we do it well, we will leave it behind." The traders told reporters, "traders have no other income outside the performance commission, and companies must have a certain educational threshold to recruit people, so traders who can't do it will usually retreat."

However, in August 2015, the securities lending T+0 suffered a halt from the regulatory authorities, and a number of brokerages stopped paying their bills at the same time, which led to the end of the strategy. Although a number of brokerages had provided T+0 transactions in disguised form, some of them failed.

Do T strategy re ignite?

In the view of some investors, T+0 is expected to be introduced by the science and technology board. It does not rule out that the trading strategy within the day will be further rekindled.

"If T+0 formally becomes a system and no longer uses securities, I believe there will be a lot of money coming in." The above private equity agencies pointed out that "this mechanism will also stimulate the improvement of market activity, and believe that the company will gain a higher valuation because of better liquidity."

"We are already discussing the possibility of T+0's intraday strategy in the science and technology board, and other T+0 related strategies are comparing the transactions of the science and technology board," he said. The head of a private placement agency in Shanghai said.

There are also private individuals who point out that T+0 will bring more abundant strategic supply to quantitative investment.

"The current T+1 system is also limited or the limit of trading is limited to a certain extent by limiting the trading mode, overemphasizing the protection of investors, but it also limits the implementation of some quantitative strategies." "For example, for quantitative hedging, a single T+0 can definitely further enhance the effectiveness of the strategy," said a Beijing based quantitative private equity firm.

"But T is limited to once a day, which should have some restrictions on procedural trading, because the fear that procedural trading will bring greater trading advantages to small and medium investors and hinder market fairness, but in any case, single T+0 has made great progress." The above private equity agencies said.

But the foregoing traders said that before the T+0 trading mode could be copied on the board, there are still variables.

"The premise of making T is not only institutional space, but also a certain volume of underlying stocks, but the plate of the stock is not big enough, and the second is the threshold of 500 thousand yuan, which also limits the entry of some retail investors, which leads to some problems in liquidity." The traders said frankly, "of course, T+0 itself will also lead to trading, but whether we can do it or not, and how much strategic capacity we need, still depends on the effect after implementation."

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