Rules for Trading Stock Index Futures Promulgated
June 28th, 2007The China Financial Futures Exchange (CFFEX) has, with approval from the China Securities Regulatory Commission (CSRC), promulgated rules on the trading of stock index futures, according to this Chinese media report.
CFFEX issued the following with CSRC approval:
- Trading Regulations (Jiaoyi guize)《交易规则》
- Measures for Handling Violations of Regulations and Agreements (Weigui wei yue chuli banfa)《违规违约处理办法》
Additionally, CFEX issued on its own a series of detailed implementing rules for stock index futures trading, including detailed rules on:
- Detailed Trading Rules (Jiaoyi guize xize)《交易细则》
- Settlement (Jisuan guize)《结算细则》
- Settlement Business by Members of the Settlement Association (Jiesuan huiyuan jiesuan yewu xize)《结算会员结算业务细则》
- Measures on the Administration of Membership (Huiyuan guanli banfa)《会员管理办法》
- Risk Control Measures (Fengxian kongzhi guanli banfa)《风险控制管理办法》
- Information Management Measures (Xinxi guanli banfa)《信息管理办法》
- Measures for the Management of Hedging (Taoqi baozhi guanli banfa)《套期保值管理办法》
All the rules were announced yesterday. They had been circulated for public comment. The drafting process reportedly began in March of 2006.
It has been official PRC policy for several years to diversify the types of financial products available in China’s markets. The most recent amendments to the company and securities laws paved the way for these chagnes. These rules bring us closer to the actual commencement of trading in stock market derivatives.
In Chinese CFFEX is the Zhongguo jinrong qihuo jiaoyisuo 中国金融期货交易所) or Zhong jin jiao (中金所) for short.