China to Review Futures Trading Regulation

The State Council, China’s Cabinet, on Monday unveiled revisions to the Administrative Regulations on Futures Trading, which included clauses to allow overseas institutions to enter the market.

“Qualified overseas institutions can conduct futures trading of certain products in futures exchanges,” the revised regulations read, adding that concrete measures will be made by futures management authorities under the State Council.

The State Council said in a statement on its website that this clause left room for overseas investors to directly participate in futures trading of crude oil, which the government is currently planning to roll out.

The statement said the revisions were made to keep up with new situations and resolve new problems in futures trading. Many trading activities in recent years have had obvious features of futures trading but were not properly supervised due to the lack of unified regulations.

The revision specified the definition and characteristics of futures trading to provide a clear legal basis for futures supervision and the rectification of illegal trading activities.

The revised version will take effect from Dec. 1, 2012.

via Xinhua

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza