Companies, Exchanges and Transactions: Regulating the Re-emergence of China's Financial Futures Industry
The Futures Companies Measures are particularly helpful in examining and understanding the re-emergence of the financial futures industry in China and the evolving regime that will regulate its practice.
Date:
October 2007
Keywords (click to search): [finance] [futures] [financial futures] [Measures for the Administration of Futures Companies] [futures exchanges] [investment] [derivatives] [chief risk officer] [China Financial Futures Exchange]
By Michael G. DeSombre, Robert Chu and Yingmao Tang
Sullivan & Cromwell LLP, Hong Kong and Beijing
Earlier this year, the China Securities Regulatory Commission (CSRC) promulgated the Measures for the Administration of Futures Companies (Futures Companies Measures), which became effective on April 15 2007, as part of an impressive flurry of legislative and rule-making activities that have yielded a far-ranging array of regulations, measures and other rules concerning futures companies, futures exchanges and their activities. It is both symbolically and substantively significant that the Futures Companies Measures have taken effect on the eve of the expected launch of stock index futures as the first product on the newly established China Financial Futures Exchange (CFFEX) in Shanghai.
The modern history of financial futures in China dates back to 1993, when the Shanghai Stock Exchange introduced futures contracts in China's treasury bonds. Two years later, following a period of aggressive growth accompanied by...
To continue reading this article, you must be a subscriber.
The rest of this article is available to subscribers only. Subscribe now to continue reading this article and to have full access to all other articles and full-text translations.