PBOC, CBIRC, CSRC and SAFE consult on Guidance Promoting Proper Development of Derivatives Business

On 3 December 2021, the People’s Bank of China (PBOC), the China Banking and Insurance Regulatory Commission (CBIRC), the China Securities Regulatory Commission (CSRC) and the State Administration of Foreign Exchange (SAFE) issued a set of draft rules governing the regulation of derivatives business in mainland China for public consultation.  

The Guidance provides for a wide range of regulatory requirements for regulated financial institutions conducting derivatives business, with the objective of promoting the healthy development of the onshore derivatives markets, protecting the rights of all relevant parties participating in such markets and preventing systemic risks. The Guidance lays out a comprehensive regulatory framework for the derivatives markets and consolidates the existing rules in this area.