China Securities Regulatory Commission issued "Administrative Measures for the Supervision and Administration of Derivatives Trading (Trial)"

On May 15, the China Securities Regulatory Commission issued the "Supervision and Management Measures for Derivative Trading (Trial)" ("Measures"). The "Measures" stipulate regulations on derivative trading and settlement, derivative traders, derivative business institutions, derivative market infrastructure, supervision and management, and legal responsibilities, including the following contents: First, clearly defining the adjustment scope. Second, defining the function positioning of managing risks, allocating resources, and serving the real economy in the derivative market. Third, specifying the basic principles that all parties participating in derivative trading and related activities should adhere to, prohibiting illegal behavior through derivative trading. Fourth, standardizing derivative trading and its settlement. Fifth, strengthening trader protection, specifying trader suitability standards, and requiring real-name accounts for derivative trading. Sixth, enhancing the supervision of derivative business institutions, clarifying internal control and risk management requirements, stipulating that securities companies and futures companies applying to conduct derivative trading business must have a net capital of not less than RMB 500 million for the past 6 months, and the China Securities Regulatory Commission can adjust the minimum net capital limit according to the principle of prudent supervision, in order to leave room for imposing higher requirements on relevant institutions based on regulatory needs. Seventh, strengthening the supervision of derivative market infrastructure. Eighth, clearly defining supervision and management, and legal responsibilities. The "Measures" will be implemented from November 16, 2026. From the date of implementation of the "Measures," all relevant entities engaging in derivative trading and related activities must comply with the regulations of the "Measures." Non-compliance with the regulations will not be allowed to add new businesses, and existing businesses must be settled upon maturity. The specific implementation arrangements for administrative licensing of derivative trading business will be separately clarified by the China Securities Regulatory Commission. This article is adapted from the China Securities Regulatory Commission, and edited by GMTEight: Chen Wenfang.