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 on
Tuesday.
The agreements signal the establishment of a trans-market
supervision and cooperation system, covering both stock and futures
markets.
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.
(China Daily August 14, 2007)
