Core Viewpoint - The People's Bank of China and the State Administration of Foreign Exchange are revising the interim regulations on the interbank foreign exchange market to enhance regulation and support the real economy, with a draft open for public consultation until September 21, 2025 [1][3]. Summary by Sections Regulation Enhancement - The new regulations aim to strengthen oversight of the interbank foreign exchange market, with comprehensive management requirements and penalties for various market participants [4][5]. Comprehensive Market Supervision - A full-chain market supervision system will be established, covering operational management, trader management, legal agreements, market maker management, information exchange, disclosure, data services, and self-regulation [4][5]. Infrastructure Management - The regulations will clarify the responsibilities and cooperation mechanisms of the foreign exchange market infrastructure, including transaction and clearing qualifications and supervision duties [4]. Business Boundaries for Participants - The regulations will define the market entry scope, basic conditions, and business principles for financial institutions, allowing them to independently decide on risk mitigation services [4][6]. Forward-looking Management - The regulations reflect a proactive approach to market trends, aiming to enhance the management of the foreign exchange market by utilizing modern technologies for data analysis and risk detection [6].

Core Viewpoint - The People's Bank of China and the State Administration of Foreign Exchange are revising the interim regulations on the interbank foreign exchange market to enhance regulation and better serve the real economy, reflecting the need for updated frameworks in response to changing economic and financial environments [1][2]. Group 1: Regulatory Framework - The revised regulations aim to establish a comprehensive market supervision system, enhancing the forward-looking nature of foreign exchange market management [1][3]. - The interim regulations, first implemented in 1996, have been crucial for maintaining market order and protecting institutional rights, but require updates to meet current practical demands [2][3]. Group 2: Structure of the New Regulations - The new management regulations consist of four chapters: general provisions, management of market participants, business supervision, and supplementary provisions, totaling 35 articles [3]. - The regulations emphasize comprehensive supervision of all types of market participants by the People's Bank of China and the State Administration of Foreign Exchange, with clear management requirements and penalties [3]. Group 3: Market Infrastructure and Services - The regulations outline responsibilities and collaborative mechanisms for the infrastructure of the interbank foreign exchange market, including management of trading and clearing qualifications [3]. - Financial institutions are given autonomy in deciding participation in risk mitigation services, with a clear path for conducting RMB foreign exchange derivative transactions through domestic currency brokerage firms [3]. Group 4: Market Development - The management regulations propose to continuously enrich trading varieties and currencies based on market demand, adhering to market principles in providing data services [3].

Core Viewpoint - The People's Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) have revised the interim regulations on the interbank foreign exchange market to enhance regulation and support the real economy, with a draft open for public consultation until September 21, 2025 [1][2]. Group 1: Regulatory Enhancements - Strengthening regulation of the interbank foreign exchange market, with comprehensive oversight by the PBOC and SAFE over various participating institutions [1]. - Establishing a full-chain market regulation system that includes requirements for operational management, trader management, legal agreements, market maker management, information exchange, disclosure, data services, and self-regulation [1]. Group 2: Infrastructure and Service Improvements - Improving the management and service capabilities of foreign exchange market infrastructure, detailing responsibilities, collaboration mechanisms, abnormal handling, and information reporting requirements [1]. - Specifying that infrastructure is responsible for managing trading and clearing qualifications and fulfilling supervisory duties [1]. Group 3: Clarification of Institutional Roles - Clarifying the business boundaries for participating institutions, including the entry scope, basic conditions, and business principles for financial institutions [2]. - Emphasizing that financial institutions can independently decide on risk mitigation services such as trade offsetting and synchronous settlement [2]. Group 4: Forward-looking Management - Enhancing the forward-looking nature of foreign exchange market management by continuously enriching trading varieties and currencies based on market demand [2]. - Providing data services according to market principles and regulating the data distribution behavior of financial information service providers [2].