China Securities Regulatory Commission issues "Regulations on the Supervision and Administration of Derivative Trading"

The China Securities Regulatory Commission has issued the "Derivative Trading Supervision and Management Measures." The "Measures" stipulate that derivative trading refers to trading in swap contracts, forward contracts, non-standardized options contracts, and their combinations, other than futures trading. The "Measures" provide regulations on derivative trading and clearing, derivative traders, derivative business institutions, derivative market infrastructure, supervision and management, and legal responsibilities, mainly including the following contents: First, clarify the adjustment scope. Second, clarify the functional positioning of managing risks, allocating resources, and serving the real economy of the derivative market. Third, clarify the basic principles that all parties participating in derivative trading and related activities must abide by, and prohibit illegal acts through derivative trading. Fourth, standardize derivative trading and clearing. Fifth, strengthen trader protection, clarify trader suitability standards, and require real-name registration for derivative trading accounts. Sixth, strengthen supervision of derivative business institutions, clarify internal control and risk management requirements, stipulate that securities companies and futures companies applying to carry on derivative trading business must have a net capital of not less than RMB 500 million continuously for the past six months as an administrative licensing condition. At the same time, it is stipulated that the China Securities Regulatory Commission may adjust the minimum net capital limit according to the principle of prudent supervision to provide room for higher requirements for relevant institutions according to regulatory needs. Seventh, strengthen supervision of derivative market infrastructure. Eighth, clarify supervision and management and legal responsibilities. The "Measures" will be implemented from November 16, 2026.