SSE, SZSE and CSDC Released Relevant Rules on Securities Trading Capital Front-end Risk Control

date: 2017-12-6

In order to strengthen risk control and maintain market fairness, Shanghai Stock Exchange(hereinafter referred to as SSE), Shenzhen Stock Exchange(hereinafter referred to as SZSE) and China Securities Depository and Clearing Corporation Limited (hereinafter referred to as CSDC) jointly formulated the Shanghai Stock Exchange Shenzhen Securities Exchange China Securities Depository and Clearing Corporation Limited Rules on Securities Trading Capital Front-end Risk Control and supporting rules, which was approved by the China Securities Regulatory Commission(hereinafter referred to as CSRC) on December 1, 2017, and will come into effect since June 1, 2018.

 

As introduced by the relevant principal, based on the deployment of the CSRC, Rules on Securities Trading Capital Front-End Risk Control (hereinafter referred to as the Capital Front-End Control) provided that SSE, SZSE and CSDC implement front-end control on the total net buy-in amount of the trading unit of the day declared by the securities companies and fund companies and insurance companies and other market participants in their proprietary and funds management business. The rules is designed to strengthen management on daily transaction without affecting the normal transactions of the institutions, to better maintain the order of the trading and settlement, to maintain market fairness, to protect the legitimate rights and interests of investors, especially small and medium-sized investors, and to ensure the safe and stable operation of the stock market. The rule does not affect the normal trading of ordinary investors.

 

The relevant principal reminded that before the formal implementation of the relevant rules of Capital Front-End Control, all relevant agencies should pay close attention to the construction of the internal control system and the renovation of the technical system in accordance with the requirements. Next, SSE, SZSE and CSDC will carry out the appropriate business training, technical testing and on-site inspection and other work to ensure the smooth and effective implementation of Capital Front-End Control.