The Securities Regulatory Commission issued the “Regulations on the Administration of Programmatic Trading in the Futures Market (Trial)”

The Zhitong Finance App learned that on June 13, the China Securities Regulatory Commission issued the “Regulations on the Administration of Programmatic Trading in the Futures Market (Trial)”. Among them, administrative regulations clarify the definition of programmatic trading and high-frequency trading, and require that engaging in programmatic trading must not affect the safety and normal trading order of the futures exchange system. Clarify programmatic transaction reporting requirements. Traders should report relevant information before engaging in programmatic transactions, and can only engage in programmatic trading after receiving confirmation; futures companies and futures exchanges should check the reported information regularly or irregularly.

At the same time, strengthening system access management requires futures companies and traders' technical systems to have relevant functions and be tested to clarify prohibited acts in access management. Clarify transaction monitoring and risk management requirements, and require futures companies and traders to strengthen risk prevention and control and handle emergencies in a timely manner; futures exchanges should do a good job of monitoring and monitoring abnormal trading behavior to ensure the safety of the exchange system and maintain market trading order. Clarify supervisory and management arrangements, the Securities Regulatory Commission and its dispatched agencies carry out administrative supervision in accordance with law, and the Futures Exchange and the China Futures Industry Association carry out self-regulatory management in accordance with business rules. Clarify the applicable arrangements for relevant entities.

The original text is as follows:

The Securities Regulatory Commission issued the “Regulations on the Administration of Programmatic Trading in the Futures Market (Trial)”

In order to implement the requirements of the Futures and Derivatives Law and “Opinions on Strengthening Supervision and Risk Prevention to Promote High-Quality Development of the Futures Market” (Guoguanfa (2024) No. 47), strengthen the supervision of programmatic transactions in the futures market and maintain the order and fairness of the futures market, the Securities Regulatory Commission has comprehensively summarized the practical experience of programmatic trading supervision in the futures market and formulated the “Regulations on the Administration of Programmatic Trading in the Futures Market (Trial)” (hereinafter referred to as the “Administrative Provisions”), which will be implemented on October 9, 2025.

The “Administrative Regulations” consist of 7 chapters and 37 articles to strengthen supervision of the entire process of programmatic trading in the futures market.

The first is to clarify the definition of programmatic trading and high-frequency trading, and require that engaging in programmatic trading must not affect the security and normal trading order of the futures exchange system.

The second is to clarify programmatic transaction reporting requirements. Traders should report relevant information before engaging in programmatic transactions, and can only engage in programmatic trading after receiving confirmation; futures companies and futures exchanges should check the reported information on a regular or irregular basis.

The third is to strengthen system access management. The technical systems of futures companies and traders are required to have relevant functions and tests to clarify prohibited acts in access management.

Fourth, strengthen hosting and seat management, establish a hosting information reporting system and trading seat management system, and make it clear that futures exchanges and futures companies should distribute relevant technical resources fairly.

Fifth, clarify transaction monitoring and risk management requirements, requiring futures companies and traders to strengthen risk prevention and control and handle emergencies in a timely manner; futures exchanges should do a good job of monitoring and monitoring abnormal trading behavior to ensure the safety of the exchange system and maintain market trading order.

The sixth is to clarify supervisory and management arrangements. The Securities Regulatory Commission and its dispatched agencies carry out administrative supervision in accordance with law, and the Futures Exchange and the China Futures Industry Association carry out self-regulatory management in accordance with business rules.

The seventh is to clarify the applicable arrangements for relevant entities.

Earlier, the Securities Regulatory Commission publicly solicited comments from the public on the “Administrative Regulations”. All parties have basically endorsed the basic ideas, overall framework and main contents of the “Administrative Regulations”. After careful research, the Securities Regulatory Commission absorbed and adopted the main opinions and suggestions relating to the “Administrative Regulations”. Subsequently, the Securities Regulatory Commission will guide futures exchanges and futures industry associations to formulate and issue relevant business rules and complete the work related to the implementation of the “Administrative Regulations”.

This article was compiled from the “Securities Regulatory Commission Release” WeChat account, Zhitong Finance Editor: Liu Jiayin.