Trust companies should manage risks to benefit from SIFs trading
New rules set qualification requirements
Issue: September 2011
Keywords (click to search):
trust companies
SIFs trading
stock index futures
Zhong Lun
Trust companies can optimise their investment structures through the trading of stock index futures (SIFs), but corporate governance and risk control are the keys to success, say counsel.
The China Banking Regulatory Commission (CBRC) has announced new rules that allow trust companies to trade index futures on the China Financial Futures Exchange (CFFEX). The Guidelines on the Participation in Stock Index Futures Trading by Trust Companies (中国银行业监督管理委员会信托公司参与股指期货交易业务指引) (the Guidelines), which took effect on June 28, permits trading activities for hedge, arbitrage and speculative purposes by trust companies. These companies must satisfy...
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