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Supervisory system on stock index futures established

By Shangguan Zhoudong (Chinadaily.com.cn)
Updated: 2007-08-14 11:29

Five institutions involved in trading stock index futures yesterday
signed a series of agreements in Shanghai to supervise the market, the
Shanghai Securities News reported today.

The agreements signal the establishment of a trans-market supervision and
cooperation system, covering both stock and futures markets.

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The five institutions are the Shanghai Stock Exchange, Shenzhen Stock
Exchange, China Financial Futures Exchange, China Securities Depository
and Clearing Corporation Limited, and China Futures Margin Monitoring
Center Co Ltd.

Four mechanisms - the information exchange, risk pre-warning, risk
control, and joint investigation - have been established.

Tu Guangshao, vice chairman of the China Securities Regulatory Commission
(CSRC), and Jiang Yang, assistant chairman of the commission, attended
the signing ceremony.

Tu attached more importance to the implementation of the supervision
system and urged the five institutions to work together.

The CSRC approved the trading rules for stock index futures in June, a
crucial step toward the launch of the mainland's first index futures
market.

The approved trading rules cover trading practices, clearing procedures,
members' rights and obligations, risk control, information management,
hedging operations and the investigation of and penalties for irregular
trading.

(For more biz stories, please visit Industry Updates)

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