• CHI CSRC proposed interim provisions on position management in the futures market.

Interim Provisions

• Interim provisions are applicable to futures exchanges, futures operating institutions, foreign brokerage institutions, traders as well as other relevant market participants.
• Require futures exchanges to formulate and adjust position limits; evaluate regularly.
• Stipulate formation, adjustment and risk management of regulating position limits.
• Clarify application conditions, approval procedures and adjustment for hedging quotas.
• Require futures exchanges to establish a large trader position reporting system.
• Specify reporting standards/adjustment, content, procedures, reporting obligations.
• Require futures exchanges to establish a merger exemption system based on specific circumstances of position mergers; clarify consolidated calculation of the positions held by the same trader on the same type of transaction codes at multiple members.
• Specify legal responsibilities; specify administrative punishment measures for futures exchanges, intermediary agencies/traders; applies to other approved trading venues.

Effectiveness

• Consultation is open for public opinion until 29 January 2023.