CSRC solicits opinions on regulations for managing program trading in the futures market.

On January 17th, in order to implement the requirements of the "Futures and Derivatives Law" and the "Opinions on Strengthening Supervision, Preventing Risks, and Promoting the High-Quality Development of the Futures Market" (State Council Document [2024] No. 47), strengthen the supervision of algorithmic trading in the futures market, regulate algorithmic trading behavior, maintain the order of futures trading and market fairness, the China Securities Regulatory Commission (CSRC) drafted the "Regulations on the Management of Algorithmic Trading in the Futures Market (Trial) (Consultation Draft)" (hereinafter referred to as the "Regulations") and is now soliciting public opinions. The "Regulations" focus on strong supervision, risk prevention, and promoting high-quality development, and strengthen the comprehensive supervision of algorithmic trading in the futures market. The original text is as follows: CSRC solicits public opinions on the "Regulations on the Management of Algorithmic Trading in the Futures Market (Trial) (Consultation Draft)" In order to implement the requirements of the "Futures and Derivatives Law" and the "Opinions on Strengthening Supervision, Preventing Risks, and Promoting the High-Quality Development of the Futures Market" (State Council Document [2024] No. 47), strengthen the supervision of algorithmic trading in the futures market, regulate algorithmic trading behavior, maintain the order of futures trading and market fairness, the China Securities Regulatory Commission (CSRC) has drafted the "Regulations on the Management of Algorithmic Trading in the Futures Market (Trial) (Consultation Draft)" (hereinafter referred to as the "Regulations") and is now soliciting public opinions. The "Regulations" focus on strong supervision, risk prevention, and promoting high-quality development, and strengthen the comprehensive supervision of algorithmic trading in the futures market. Firstly, it clearly defines algorithmic trading and overall requirements. Secondly, it clarifies the requirements for algorithmic trading reporting. Thirdly, it strengthens system access management. Fourthly, it strengthens host custody and seat management. Fifthly, it clarifies trading monitoring and risk management requirements. Sixthly, it clarifies the supervision and management arrangements. Seventhly, it clarifies the applicable arrangements for relevant entities. We welcome valuable opinions from all sectors of society. The CSRC will further modify and improve the "Regulations" based on the feedback from the public consultation, and will publish and implement them after completing the relevant procedures. This article is selected from the "China Securities Regulatory Commission", edited by GMTEight: Liu Xuan.