The China Securities Regulatory Commission (CSRC) has promulgated the Trial Measures for the Supervision and Administration of Derivatives Trading with Order No. 234, set to take effect on November 16, 2026.
The measures apply to derivatives trading and related activities organized by derivatives trading venues under CSRC supervision, as well as derivatives trading businesses conducted by derivatives institutions. Derivatives trading here refers to transactions involving swap contracts, forward contracts, and non-standardized option contracts and their combinations, excluding futures trading.
On basic principles, the measures support the derivatives market in playing its role in risk management, resource allocation, and serving the real economy, encouraging hedging and other risk management activities, while restricting excessive speculation in accordance with the law. All participants must adhere to principles of fairness, voluntariness, compensation, and good faith, and must not engage in market manipulation, insider trading, or other illicit activities. The CSRC will implement prudential regulation and counter-cyclical adjustments, while industry associations, trading venues, and clearing institutions should maintain reasonable leverage levels and market size and enhance standardization.
Regarding trading rules, the measures require that underlying assets have fair market pricing, good liquidity, and be not easily manipulated, with contract terms being concise and clear. Over-the-counter derivatives trading must comply with industry association rules. Derivatives institutions are prohibited from advertising or using public solicitation to promote contracts. Transactions may be concluded via master agreements, the templates of which must be filed with the CSRC. Margin can serve as performance guarantee, in forms including cash, bonds, and stocks, with discount rates for non-cash margin subject to dynamic adjustment. Margin must be prioritized for settlement, and reuse requires counterparty consent and reporting.
For highly standardized, liquid derivatives, clearing institutions may act as central counterparties for central clearing. Listed companies and companies traded on other national securities trading venues approved by the State Council are generally prohibited from entering into derivatives with their own stocks or equity securities as underlying, and derivatives institutions are also barred from engaging in such transactions with certain shareholders.
Trading participants must meet professional trader standards set by the CSRC, with industry associations and venues allowed to set differentiated but not lower standards. Hedging activities may be exempted from some requirements. Derivatives institutions must fulfill suitability management obligations, verifying participant identities and purposes, and assessing risk tolerance. Account real-name registration is mandatory, with prohibitions on lending or borrowing accounts. The trade repository should enhance identity recognition. Listed companies engaging in derivatives must disclose information and establish risk control systems.
For derivatives institutions, the measures set entry conditions, including a minimum net capital of 500 million yuan over the past six months, good corporate governance, and qualified personnel. The CSRC will implement tiered and classified management. Institutions must operate prudently, establish risk management and internal control systems, separate derivatives from conflicting businesses, and manage all risks comprehensively. Daily mark-to-market of margin and pricing and valuation systems are required. For non-centrally cleared transactions, timely confirmation and risk mitigation measures are necessary. Employees must not commit fraud, provide illegal financing, lend business qualifications, or engage in behaviors that harm participants or disrupt the market. Cross-border derivatives business requires enhanced compliance and reporting.
On market infrastructure, securities and futures exchanges may organize derivatives trading upon approval and monitor risks. Hedging by institutions must use dedicated accounts, and exchanges can offer position limit exemptions and other facilities. Futures clearing institutions and securities depository and clearing institutions may provide central or non-central clearing services. The CSRC establishes a derivatives trade repository to collect, analyze, and manage trading information, and to set up data sharing and cross-market monitoring mechanisms with relevant entities. Relevant information and materials must be retained for at least 20 years.
The legal liability chapter specifies that violations may result in measures such as orders to correct, regulatory talks, or warning letters; administrative penalties, where applicable, follow the Futures and Derivatives Law, and where the law lacks provisions, the CSRC may impose fines under these measures, with fines up to 200,000 yuan for cases involving financial security and harmful consequences. Specific penalties include warnings and fines for exchanges, institutions, and employees, and compliance is recorded in credit files.
Additionally, the measures address coordination with other financial authorities, cross-border regulatory cooperation, and special provisions for credit derivatives, and define key terms such as derivatives institutions, trading venues, clearing institutions, market infrastructure, and industry associations.