Business · Markets · 1 hr ago

China futures exchanges propose tougher rules for quantitative trading

China futures exchanges propose tougher rules for quantitative trading

China’s five futures exchanges are proposing tougher rules for programme trading, also known as quantitative trading.

The proposals define violations and penalties for firms that fail to monitor clients’ trading or manage the risks it creates.

The exchanges are seeking public comment on the changes until Monday.

The move comes as China’s stock markets are struggling and policymakers focus on financial stability.

The securities regulator recently met with market participants, signalling that stabilisation measures could follow if stocks fall further.

Beijing sees capital markets as important for funding domestic companies working on technology self-reliance.

The strictest proposed penalty is a permanent ban from the market.

Sources

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