On November 23, 2018, the China Financial Futures Exchange (CFFEX) released the amended Measures of China Financial Futures Exchange on Dealing with Violations and Breaches (the “Measures”) following extensive research and consultation with the industry. The Measures will take effect on November 26, 2018.
This round of amendment features three highlights. First, it provides a more comprehensive coverage of violations and breaches, adding to the list such behaviors as members’ violation of investor suitability rules, failure to inform and supervise clients to declare accounts with actual control relationship, and failure to supervise client trading behaviors, among others, and also improves the coverage of acts that may affect the orderly trading in the financial futures market. Second, it strengthens the measures for dealing with violations and breaches, not least by introducing such measures as confiscation of illegitimate gains and clarifying the criteria and scope of applying provisional measures and market bans. Third, it clarifies the basis for the rules on investigation of violations and breaches. Overall, the amended Measures further underscore the role of members in supervising clients’ trading activities, and strengthen the self-regulatory functions of the Exchange.
With the release of the amended Measures, CFFEX will continue to be committed to protecting the legitimate rights and interests of investors, and maintaining an orderly, stable, and sound market for financial futures.