Project Enables Regulatory Compliance Regarding Delivery Versus Payment Settlement in Inter-Bank Bond Market
XIAMEN, China, Oct. 8 /Xinhua-PRNewswire/ -- Longtop Financial Technologies Limited ("Longtop") (NYSE: LFT), a leading software developer and solutions provider targeting the financial services industry in China, today announced that it has been selected to upgrade the clearing center operation system for the headquarters of a Big Four bank in China.
Longtop will help the Big Four customer meet the People's Bank of China's regulatory requirement regarding Delivery Versus Payment (DVP) in the inter-bank bond market. DVP refers to a settlement procedure where delivery of purchased securities and payment is made simultaneously on the agreed settlement date after a bond transaction agreement has been reached. Earlier this year, the People's Bank of China, China's central bank, issued Administrative Measures on Bond Trading in the National Inter-bank Bond Market requiring commercial banks to realize DVP settlement with an aim to improve market efficiency and reduce risks related to bond transactions.
In addition to the DVP function, Longtop will also upgrade the clearing center operation system by centralizing the clearance and payment functions for fixed deposits, funds transfer, foreign exchange as well as precious metal trade, which were previously distributed around separate operational systems. This upgrade is aimed at strengthening risk management. In 2007 Longtop developed the national clearing center operation system for this customer.
"With our in-depth understanding of customer needs in this rapidly changing market and regulatory environment, Longtop is committed to helping our customer continue to improve its IT infrastructure and meet the newest compliance standards," commented Weizhou Lian, Chief Executive Officer of Longtop. "This project yet again demonstrates the recurring nature of our revenues having successfully developed our customer's national clearing center operation system in 2007."
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About Longtop Financial Technologies Limited
Longtop is a leading software development and solutions provider targeting the financial services industry in China. Longtop develops and delivers a comprehensive range of software applications and solutions with a focus on meeting the rapidly growing IT needs of the financial services institutions in China. Longtop has six solution delivery centers, three research centers and thirty nine service centers located in 20 provinces throughout China. Longtop was founded in 1996 by Xiaogong Jia, Chairman, and Weizhou Lian, CEO, as a system integration company focusing on the financial services industry in China and made the transition to a software and solutions provider in 2001. For more information, please visit: http://www.longtop.com .
For more information, please contact:
Longtop Financial Technologies Limited
Charles Zhang
Phone: +86-10-8421-7758
Email: ir@longtop.com
IR Inside BV
Caroline Straathof
Phone: +31-6-5462-4301
Email: caroline.straathof@irinside.com
