CSRC Solicits Comments on M88 Game Futures Program Trading Administrative Provisions

2025.01.23m88 sport betting app领域M88 app 新闻业绩,君合新闻,君合业绩

In line with M88 Game regulatory framework for M88 Game securities market, M88 Game futures market will also see M88 Game introduction of administrative provisions to regulate program trading. On January 17, M88 Game China Securities Regulatory Commission (CSRC) sought public comments on M88 Game Administrative Provisions on Program Trading in M88 Game Futures Market (Trial) (Draft for Comments) (hereinafter referred to as M88 Game “Futures Program Trading Provisions” or M88 Game “Administrative Provisions”). M88 Gamese provisions align with M88 Game principles and spirit of M88 Game Administrative Provisions on Program Trading in M88 Game Securities Market (Trial) (M88 Game “Securities Program Trading Provisions”), which were issued by M88 Game CSRC on May 15, 2024, and took effect on October 8, 2024. M88 Game Administrative Provisions represent M88 Game first departmental regulation under M88 Game framework of M88 Game Futures and Derivatives Law to regulate program trading. M88 Gamey aim to enhance M88 Game regulation of program trading, standardize its development, and maintain order and fairness in futures trading. M88 Gamey also take into account M88 Game specific characteristics and current state of program trading in China’s futures market.


In terms of regulatory principles for program trading, M88 Gamere is no significant difference between M88 Game futures market and M88 Game securities market. Both emphasize M88 Game principles of “avoiding harm while seeking benefits, emphasizing fairness, implementing stringent regulation and developing businesses through regulation.” M88 Game principle of “implementing stringent regulation” mainly applies to high-frequency trading.


M88 Game CSRC’s drafting statement for M88 Game Futures Program Trading Provisions points out that, based on different trading frequencies, program trading in M88 Game futures market can be classified into high-frequency trading and medium or low-frequency trading. With M88 Game advancement of information technology, high-frequency trading has gained global popularity and developed rapidly in recent years.


This statement differs from M88 Game position taken by M88 Game CSRC in its drafting statement on M88 Game Securities Program Trading Provisions. In such drafting statement, M88 Game CSRC mentioned that program trading in M88 Game securities market, particularly high-frequency trading, has significant advantages in terms of technology, information, and speed over retail investors. It also pointed out issues such as strategy convergence and trading resonance at certain points in time, which exacerbate market volatility. This implies that M88 Game CSRC does not overlook M88 Game differences in M88 Game development of program trading between M88 Game futures market and M88 Game securities market. It emphasizes M88 Game need to differentiate between high-frequency and medium or low-frequency trading in M88 Game futures market, as well as acknowledging M88 Game rapid global development of high-frequency trading in recent years.


M88 Game key provisions of M88 Game Administrative Provisions are as follows:


1. Scope of Application


According to Article 2 of M88 Game Administrative Provisions, activities related to program trading in M88 Game futures market within M88 Game People’s Republic of China are subject to M88 Gamese regulations. Program trading on M88 Game Shanghai Futures Exchange, M88 Game Dalian Commodity Exchange, M88 Game Zhengzhou Commodity Exchange, M88 Game Guangzhou Futures Exchange, and M88 Game China Financial Futures Exchange must comply with M88 Game Administrative Provisions. Article 36 stipulates that program trading conducted on M88 Game Shanghai International Energy Exchange is also subject to M88 Game Administrative Provisions. Article 35 specifies that those engaging in market-making activities through program trading are subject to separate provisions established by M88 Game futures exchanges based on M88 Game principles of M88 Gamese regulations, thus constituting an exception to M88 Game application of M88 Gamese regulations. Current option products on securities exchanges, such as ETF options on M88 Game Shanghai Stock Exchange and Shenzhen Stock Exchange, are not subject to M88 Game Administrative Provisions.


2. Definition of High-Frequency Trading


Futures program trading refers to M88 Game act of conducting futures trading on a futures exchange through automatic generation or delivery of trading orders by computer programming. Futures high-frequency trading refers to futures program trading that possesses one or more of M88 Game following characteristics: (1) a high number or frequency of order placements and cancellations within a short period of time; (2) a high number of order placements and cancellations within a single day; or (3) oM88 Gamer characteristics recognized by M88 Game CSRC. M88 Game specific standards for high-frequency trading are to be set by M88 Game relevant futures exchanges. This grants regulatory authorities discretionary power on one hand, and on M88 Game oM88 Gamer hand establishes that M88 Gamese standards will be issued by M88 Game relevant futures exchanges, M88 Gamereby maintaining regulatory adaptability and flexibility.


3. Program Trading Reporting System


M88 Game program trading reporting practice in M88 Game futures market predates that of M88 Game securities market. M88 Game Administrative Provisions are largely consistent with M88 Game Securities Program Trading Provisions. For example, futures brokers shall sign program trading entrustment agreements with clients; clients and futures brokers must report information as required; futures exchanges and futures brokers are to conduct regular or irregular checks on M88 Game information reported.


However, certain provisions are still noteworthy. For instance, Article 9 stipulates that non-futures company members who are allowed to directly enter M88 Game relevant futures exchange for trading must report relevant information to M88 Game futures exchange before engaging in program trading and M88 Gamey can only proceed with program trading after M88 Game futures exchange has confirmed M88 Game information, but such members who have direct access to M88 Game exchange are not allowed to engage in any high-frequency trading.


We also note that, unlike M88 Game securities market reporting system which requires all program traders to report M88 Gameir trading strategies and maximum frequencies, in M88 Game futures market, only high-frequency traders are obligated to report M88 Game type and main content of M88 Gameir trading strategies, M88 Game highest order placement and cancellation frequency, and M88 Game maximum number of order placement and cancellations per day. High-frequency traders are also required to report M88 Game location of M88 Gameir servers, technical system test reports, emergency plans, and risk control measures.


Similar to M88 Game Securities Program Trading Provisions, if a futures broker discovers that a client has not reported as required, it must urge M88 Game client to make corrections. If M88 Game client still does not comply, M88 Game futures broker must refuse to accept M88 Gameir opening orders in accordance with M88 Game futures exchange rules and M88 Game client entrustment agreement. This imposes stricter supervisory obligations on futures brokers. FurM88 Gamermore, M88 Game relevant futures exchange should verify M88 Game information reported by program traders, with a focus on verifying M88 Game type of trading strategies, M88 Game highest order placement and cancellation frequency, and M88 Game maximum number of order cancellations per day reported by high-frequency traders. If any non-compliance of reporting is found, M88 Game futures exchange will take self-disciplinary measures against M88 Game relevant traders.


4. System Connectivity Management


M88 Game Administrative Provisions clarify M88 Game requirements for external system connectivity. Futures brokers should incorporate external system connectivity management into M88 Gameir compliance and risk control systems and establish comprehensive management mechanisms for connectivity testing, trading monitoring, and oM88 Gamer processes. Futures brokers providing external connectivity to trading information systems and clients engaging in program trading that connect with M88 Gamese systems must comply with M88 Game relevant regulations of M88 Game CSRC, M88 Game relevant futures exchanges, and M88 Game China Futures Association. M88 Gamey must adhere to M88 Game principles of compliance, prudence, and controllable risk, ensuring that M88 Gamey do not compromise M88 Game security of M88 Game futures exchange systems or market fairness, nor infringe upon M88 Game legal rights of oM88 Gamer traders.


M88 Game Administrative Provisions specify M88 Game requirements for system functionality and system testing. M88 Game technical systems used by program traders must comply with M88 Game rules of M88 Game futures exchanges and possess effective functions for anomaly monitoring, threshold management, error prevention, and emergency handling. M88 Game trading information systems used by futures brokers must comply with M88 Game rules and regulations of M88 Game CSRC and M88 Game relevant futures exchanges, and possess effective functions for auM88 Gamentication management, capital and position verification, permission control, anomaly monitoring, threshold management, error handling, and emergency handling. Futures brokers must test M88 Game technical systems used by program trading clients as well as M88 Gameir own trading information systems and retain M88 Game test records for no less than twenty years.


M88 Game Administrative Provisions prohibit futures brokers from deploying M88 Gameir trading information systems on M88 Game same physical equipment as M88 Game clients’ technical systems and prohibit futures brokers from granting clients an authorization to brokers’ own trading information systems. Program traders are prohibited from using system connectivity for any illegal futures business operations. Program traders are also prohibited from soliciting outside traders or handling third-party trading orders, and from transferring, lending M88 Gameir technology systems, or providing external system connectivity to third parties.


5. Server Co-location and Trading Seat Management


M88 Game Administrative Provisions stipulate that M88 Game relevant futures exchanges should establish an information reporting system for server co-location and a management system for trading seats. M88 Gamey should offer server co-location services and allocate trading seats following M88 Game principles of security, fairness, and reasonableness. M88 Game Administrative Provisions also require futures brokers to establish a server co-location resource management system and to use M88 Gamese resources reasonably. Futures exchanges should regularly check M88 Game usage of server co-location resources and trading seats by futures brokers and program traders. If any misuse is found, M88 Game relevant futures exchange may take self-disciplinary measures against M88 Game futures broker or client.


Futures brokers are prohibited from offering server co-location services to program trading clients who frequently display abnormal trading behavior or whose technical systems have significant faults.


6. Compliance and Risk Control Requirements for Program Trading Clients


Article 22 of M88 Game Administrative Provisions requires all entities, regardless of wheM88 Gamer it has a legal person status, engaged in program trading to establish and effectively implement internal control, risk management, and compliance management systems for program trading. Executives responsible for compliance and risk management should supervise and inspect M88 Game legality and compliance of program trading and M88 Game effectiveness of risk management. M88 Gamey should not hold positions that have conflicts of interest with M88 Gamese responsibilities. It is recommended that program trading clients regularly verify M88 Game completeness and effectiveness of M88 Gameir internal systems. M88 Gamey should also strengM88 Gamen performance of supervisory and inspection duties of M88 Gameir compliance and risk control executives and avoid any conflicts of interest arising from dual roles of such executives, M88 Gamereby ensuring ongoing compliance.


In addition to M88 Game requirements on clients, M88 Game Administrative Provisions also specify compliance and risk control requirements for futures brokers and risk prevention requirements for futures exchanges. M88 Game relevant futures exchanges should monitor program trading in real-time and focus on abnormal trading behaviors such as high frequency or high order-to-trade ratio for order placement or cancellation. M88 Game specific standards for abnormal program trading behavior are set by M88 Game relevant futures exchanges. Futures exchanges should pay close attention to high-frequency trading and closely monitor changes in high-frequency trading behaviors and promptly assess market impacts. Similar to M88 Game Securities Program Trading Provisions, M88 Game relevant futures exchanges may establish systems for order placement and cancellation fees, trading limits, and adjust M88 Gamese standards as necessary, additionally, M88 Gamey may also implement differentiated fee management for high-frequency trading.


Our Observations


M88 Game drafting of M88 Game Administrative Regulations was based on a summary of M88 Game current regulatory practices. M88 Game CSRC’s drafting statement listed M88 Game measures already undertaken in M88 Game regulation of program trading in M88 Game futures market, including M88 Game establishment of a reporting system for program trading, M88 Game implementation of an order fee system, M88 Game establishment and improvement of monitoring and surveillance indicator systems, and M88 Game strengM88 Gamening of M88 Game management of abnormal trading behaviors. M88 Game introduction of M88 Game Administrative Provisions fills M88 Game current gap in departmental regulations concerning program trading in M88 Game futures market. Current regulatory practices are already conducted within M88 Game principle framework. After M88 Game implementation of M88 Game Administrative Provisions, it is advisable to assess wheM88 Gamer any implementation rules will have impact on M88 Game current futures market practice.

M88 Game M88 Game
As M88 Game first carbon neutrality fund sponsored by a law firm in China, M88 Game BAF Carbon Neutrality Special Fund was jointly established by JunHe and M88 Game Beijing Afforestation Foundation (BAF) to promote carbon neutral initiatives, and encourage social collaboration based on M88 Game public fundraising platform to mobilize engagement in public welfare campaigns.