BEIJING, May 16 (Xinhua) -- China Securities Regulatory Commission (CSRC), the country's securities regulator, released interim rules to reinforce regulation over program trading on the securities market, reported Xinhua Finance on Thursday.
CSRC said the rules dedicated to bolstering orderly development of program trading and maintaining securities trading order and market fairness will enter into effect from October 8 this year.
Program trading here refers to algorithm-based automatic trading order generating or placing on a bourse for related securities trading and such trading activities shall not affect the systemic security of a securities exchange or hinder normal market trade order.
Investors for program trading, better known as quantitative trading, are required by the interim rules to report their account basics and related funds, trading, and software information and abide by the "reporting before trading" requirements in program trading.
With a definition for high frequency trading (HFT), the interim rules also stress stricter HFT regulation by coming up with differentiated regulatory requirements over the information reporting, charges, and trading monitoring for HFT.
Industry experts deemed the move as an important step for the Chinese securities regulator to optimize capital market basic rules and enhance conduct regulation, which many market players echoed with planned optimization of their investment strategies for compliance-based participation in related securities trading.
(Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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