CHINA: CSRC Solicits Public Comments Measures for Supervision and Administration of Derivatives Trading

Friday March 17 2023

On 17^th March 2023, the China Securities Regulatory Commission (CSRC) announced that in order to implement the Futures and Derivatives Law, promote the healthy development of the derivatives market, support the business innovation of securities and futures operating institutions, meet the risk management needs of various market entities, and better serve the real economy and prevent and resolve financial risks, on the basis of summarizing practical experience, the CSRC drafted and formed the Measures for the Supervision and Administration of Derivatives Trading and drafting instructions, which are open to the public for comments.

The Futures and Derivatives Law includes derivatives trading within the scope of legal adjustment, establishes basic systems for derivatives trading such as single agreement, termination netting, and transaction report database, and authorizes the CSRC to make specific provisions on derivatives trading venues, access to derivatives business institutions, trader suitability management, transaction report database, centralized settlement.

The Measures mainly including general provisions, derivatives trading and settlement, prohibited trading activities, traders, derivatives trading institutions, derivatives market infrastructure, supervision and management and legal liability, supplementary provisions.

All sectors of the community to put forward valuable opinions on the Measures, and the CSRC will further revise and improve the Measures based on the public solicitation of comments.

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