Decisions of the State Council on Cleaning-up and Rectification of All Varieties of Trading Floors to Effectively Prevent Financial Risks
Decisions of the State Council on Cleaning-up and Rectification of All Varieties of Trading Floors to Effectively Prevent Financial Risks
Decisions of the State Council on Cleaning-up and Rectification of All Varieties of Trading Floors to Effectively Prevent Financial Risks
Guo Fa [2011] No. 38
November 11, 2011
The people's governments of all provinces, autonomous regions and municipalities directly under the Central Government, all ministries and commissions of and agencies directly under the State Council,
In recent years, some regions approve establishment of some trading floors of diverse types engaged in transactions of property rights, work of culture and art, and forward transactions of bulk commodities (hereinafter referred to as "trading floors") in order to promote development of the rights (such as equities, property rights, etc.) and commodities. Due to shortness of normal management, illegalities and irregularities in establishment of trading floors and transaction activities become increasingly prominent with risks exposed constantly, which has drawn widespread concern of the public. For the purposes of preventing financial risks, standardizing market order and maintaining social stability, the following decisions are made hereby:
I.Pay great attention to risks underlying illegal transactions in all kinds of trading floors
Since trading floors, as platforms to provide fair and transparent transaction opportunities for all market players to make transactions in an orderly manner, are of strongly social and open features, it is necessary to standardize and manage them in accordance with law so as to ensure their safe operation. Among which, securities and futures transactions are of extraordinary financial and risky nature and directly matter safety of economy and finance and social stability, therefore, such transactions must be made, in designated trading floors established upon approval, strictly subject to administrative systems and rules. Currently, some trading floors illegally conduct transactions of securities and futures without approval; some trading floors are of irregular management and there exist serious speculation and price manipulation; in several trading floors, the shareholders directly participate in trading and even there exist problems of the management personnel embezzling clients' capitals or operators absconding with money, etc.
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