Securities firms suspend the addition of stock cross-border TRS, and subsequent business scale may gradually return to zero.

Reporters have learned from multiple sources that yesterday, securities dealers have suspended the increase in the scale of stock cross-border TRS in accordance with regulatory requirements. Existing positions can mature, close out, and will not be forcibly liquidated. Currently, besides stock cross-border TRS, futures, local government bonds, and some FICC and northbound-related businesses are not affected. This business has been in a restricted net increase status since early 2024, and securities dealers are still waiting for detailed guidelines to clarify the specific execution standards for the suspension of new additions. Derivatives business professionals in securities firms have indicated that based on the current understanding of guidance, it is more likely that stock cross-border TRS will no longer have new openings, and existing contracts will gradually be reduced after maturity. It is understood that the current channel fee for stock cross-border TRS is generally between 1% to 2%, making it one of the high revenue projects for securities dealers.