The China Futures Association issued the “Rules for the Administration of Futures Market Trading Business” to be implemented on December 1

The Zhitong Finance App learned that on October 31, in order to implement the relevant requirements of the “Opinions on Strengthening Supervision and Risk Prevention and Promoting High-Quality Development of the Futures Market” and further strengthen the self-regulatory management of futures market trading business, the China Futures Industry Association issued the “Futures Market Trading Business Administration Rules” and implemented them from December 1, 2025. The rules consist of 6 chapters and 35 articles. They are divided into general rules, transaction management, risk management, internal control management, self-regulation management, and supplementary provisions. They cover the front, middle and back office of the market making business, and run through the whole process of market making.

The main contents are as follows: First, clarify the prerequisites and scope of business for the exhibition. Futures market-making agencies can only carry out designated types of market-making business after obtaining approval from the exchange and signing relevant market-making agreements. The second is to refine transaction management requirements. Futures market-making agencies need to focus on strengthening the management of market-making accounts, product and strategy evaluations, quotations, hedging, systems, emergency situations, etc., strictly abide by the bottom line of business, and must not use market-making business to disrupt the market or carry out illegal activities. The third is to establish and improve internal control mechanisms for risk control. Futures market institutions need to continuously improve risk prevention and control capabilities, establish risk limit control, strengthen capital and position monitoring, and make emergency risk treatment arrangements. In terms of internal control and management, futures market trading agencies should improve the establishment of marketing-related systems, strengthen the management of business decisions and authorization, ensure business independence and effective isolation, set up special departments and personnel, and strengthen the construction of clean personnel. Fourth, strengthen self-regulatory management responsibilities. In terms of collecting business information, strengthening regulatory collaboration, and carrying out self-regulatory inspections, the Association is increasing the self-regulatory management of the market-making business of futures market-making agencies and raising the level of compliance in the industry's market-making business.

The full text is as follows:

Futures market trading business management rules

Chapter I General Provisions

Article 1. To regulate futures market trading business (hereinafter referred to as market making business), these rules are formulated in accordance with provisions such as the “Futures and Derivatives Law of the People's Republic of China”, “Regulations on the Administration of Futures Trading”, “Measures for the Supervision and Administration of Futures Companies”, and the “Constitution of the China Futures Industry Association”.

Article 2. The futures market making organization referred to in these rules refers to members of the China Futures Industry Association (hereinafter referred to as the Association) engaged in market making business.

Article 3 Futures market making institutions shall carry out market making business with the aim of improving market pricing efficiency and promoting transaction fulfillment, and shall be guided by serving the functioning of the market.

Article 4 The Association shall, under the guidance and supervision of the China Securities Regulatory Commission (hereinafter referred to as the Securities Regulatory Commission), implement self-regulatory management of the market making business of futures market makers, and establish supervisory cooperation and information sharing mechanisms with relevant agencies such as agencies dispatched by the Securities Regulatory Commission, futures trading places (hereinafter referred to as exchanges), etc.

Chapter II: Transaction Management

Article 5 Futures market-making institutions shall carry out designated types of market-making business after obtaining approval from the exchange and signing relevant market-making agreements.

Article 6 Futures market making institutions shall establish a special trading account in the name of the Company to carry out market making business, and shall not carry out other transactions unrelated to market making through this trading account.

Article 7 Futures market-making agencies shall establish evaluation mechanisms for market-making trading varieties, strengthen research related to varieties, and monitor the effectiveness of product operation.

Article 8 Futures market making institutions shall establish a trading strategy management mechanism that runs through the entire process of market making business, formulate scientific and reasonable trading strategies, and do a good job of design, testing and evaluation before the strategy is launched, and monitoring and optimization of operation after launch. Market making strategies must not violate regulatory regulations and affect the order of market transactions.

Article 9 Futures market making institutions shall establish and improve information technology management systems for market making business, configure stable and reliable market trading technology systems, carry out system tests, access and upgrades in accordance with laws, regulations and exchange requirements, and participate in related tests and emergency drills.

Article 10. Futures market making institutions shall have the ability to quote, make reasonable quotations according to market conditions, and provide real and effective liquidity to the market. The content and index requirements of the quotation shall abide by the relevant regulations of the exchange for market makers, and shall not seek improper benefits through collusive pricing with other market makers.

Article 11 Futures market-making institutions shall establish a hedging transaction management mechanism for market making business, clarify hedging authority, and regulate hedging trading behavior.

Article 12 Futures market making agencies shall formulate emergency plans for emergencies related to market making business, clarify corresponding mechanisms and handling procedures, take corresponding emergency treatment measures for situations such as system failure, network failure, operation error, transaction abnormalities, etc., and conduct emergency drills at least once a year.

Article 13 Futures market trading agencies and their personnel shall not use market making business to carry out illegal acts such as insider trading, market manipulation, fraud, etc.; they shall not use their information advantage and financial advantage alone or through collusion to create abnormal price fluctuations; they shall not harm the interests of other business customers or seek other improper benefits.

Chapter III Risk Management

Article 14 Futures market making institutions shall incorporate market making business into the company's overall risk management, establish and improve market-making business risk control systems, including but not limited to basic principles of risk management, market risk management, operational risk management, model risk management, liquidity risk management, technical risk management, compliance risk management, etc., and clarify reporting mechanisms.

Article 15 Futures market making institutions shall formulate clear and feasible risk management plans for market making operations, including but not limited to the identification, analysis and measurement, evaluation, monitoring and early warning of various types of risks.

Article 16 Futures market-making institutions shall establish and improve a market-making business risk monitoring index system, and clarify market-making business risk limits, including but not limited to capital size, exposure limits, loss limits, etc.

Article 17 Futures market-making institutions shall clarify the procedures for approval, allocation and use of funds for market making operations, ensure sufficient liquidity, estimate capital requirements under special circumstances, and formulate response plans.

Article 18 Futures market-making institutions shall dynamically monitor positions in market-making contracts and abide by the exchange's regulations on position limits, delivery, and exercise of rights.

Article 19 Futures market-making agencies shall establish and improve monitoring mechanisms for abnormal transactions, monitor acts such as self-transactions and large cancellation of orders in accordance with laws, regulations and exchange requirements to prevent adverse effects on market stability.

Article 20 Futures market-making institutions shall clarify the risk handling procedures for market-making operations, and take corresponding measures to deal with risk limits when the risk limits are warned, exceeded, etc. Prepare plans to deal with extreme market conditions in advance, conduct stress tests at least once a quarter, and conduct stress tests irregularly during special situations such as holidays and market fluctuations.

Chapter IV Internal Control Management

Article 21 Futures market making institutions shall, in accordance with laws and regulations, relevant rules of exchange and the requirements of these rules, formulate and continuously improve market making business management systems, establish market making business decision-making, authorization and execution systems, clarify business operation procedures, adjustment and monitoring mechanisms, refine operational points, and ensure the orderly development of business standards.

Article 22 Futures market making agencies shall not outsource market making business to a third party agency, nor shall they cooperate with third party agencies to carry out market making business.

Article 23 Futures market trading institutions shall establish and improve business isolation systems to ensure that market making operations are effectively isolated from other businesses in terms of personnel, systems, trading accounts, etc., and to ensure stable business operations.

Article 24 Futures market making agencies shall establish special departments to carry out market making business. Futures market-making agencies shall appoint special personnel to be responsible for trading, risk control, technology, etc., and personnel between trading posts and risk control positions shall not work part-time with each other. If support departments such as risk control and information technology are involved, the above support departments are required to set up special positions and appoint special personnel to be responsible for tasks related to the market making business. The main personnel in the market making business shall perform their duties within China. Market makers in futures market making institutions should be honest, have good conduct, have the professional abilities required to engage in market making business, comply with practice requirements, and must not work part-time in other organizations that have actual or potential conflicts of interest with their positions.

Article 25 Futures market making agencies shall establish effective remuneration incentives and restraint mechanisms for market makers to prevent improper incentives from causing situations that are contrary to the purpose of market making business.

Article 26 Futures market-making agencies shall establish a management mechanism for clean practices in market making business, strengthen personnel morality, and prevent the transfer of benefits.

Article 27 Futures market making agencies shall establish a working mechanism to keep market making business information confidential. Market makers shall keep important business-related information confidential, and shall not use the convenience of their positions to provide advice to others, etc.

Article 28 Futures market-making institutions shall properly keep records of transactions and risk control records, business operation and risk reports, etc. relating to the market making business, as well as relevant data in connection with the exchange for verification. The storage period of relevant data shall not be less than 20 years.

Chapter V Self-Regulatory Management

Article 29 Futures market making agencies shall report on the development of market making business in accordance with the requirements.

Article 30 Futures market making agencies shall promptly submit information relating to market making business in accordance with the requirements of the Securities Regulatory Commission, its dispatching agencies, exchanges, associations and other relevant agencies and self-regulatory organizations, cooperate with relevant departments to investigate and understand the situation, and consciously accept external supervision.

Article 31 The Association may conduct on-site or off-site inspections on the market making business of futures market making agencies, and futures market making agencies, their personnel, and other relevant parties shall assist and cooperate.

Article 32 If a futures market trading agency and its personnel violate these rules, the association may take corresponding self-regulatory measures in accordance with the self-regulation rules and depending on the severity of the circumstances.

Article 33 Where a futures market making agency carries out market making business suspected of violating laws, regulations or departmental regulations, etc., the association shall hand it over to the relevant unit for handling in accordance with the regulations.

Chapter 6 Supplementary Provisions

Article 34 These rules shall be formulated by the Association and shall be responsible for interpreting them.

Article 35 These Rules shall take effect on December 1, 2025.

This article was selected from “China Futures Association Official Website”; Zhitong Finance Editor: Huang Xiaodong.