The China Securities Regulatory Commission (CSRC) has revealed its regulatory framework for financial futures, bringing the trading of these instruments–initially scheduled for late last year–closer to fruition, Securities Industry reports.
The regulator announced that it would implement a series of agreements outlining how the stock index futures market will be supervised. Included in the agreements will be the five exchanges, including the Shanghai Stock Exchange, Shenzhen Stock Exchange and the new China Financial Futures Exchange (CFFEX), where the index futures will trade.
“Stock index futures are new to China and require a high level of coordination between the markets for stock and the stock index futures,” says Guangshao Tu, vice chairman of CSRC.
Yang Jiang, assistant of the chairman of the CSRC adds: “The agreements aim to prevent cross-market risks.”