Core Viewpoint - Caifutong Securities has been ordered to rectify its off-exchange derivatives business due to regulatory violations, highlighting ongoing compliance issues within the company [2][4]. Group 1: Regulatory Actions - The Zhejiang Securities Regulatory Bureau has mandated Caifutong Securities to correct deficiencies in its off-exchange derivatives business, including inadequate management mechanisms and insufficient investor qualification reviews [4]. - A warning letter has been issued to senior executive Pei Gencai, who is held responsible for the company's compliance failures [5]. - Caifutong Securities has been previously penalized multiple times this year for various compliance issues, including management problems related to its overseas subsidiaries and failure to meet customer identification obligations [6]. Group 2: Financial Performance - As of the end of Q3 2025, Caifutong Securities reported derivative financial assets of 82.45 million, a significant decrease of 89.69% from 800 million at the end of 2024, attributed to a decline in the scale of off-exchange derivatives [5]. - The company's stock price closed at 8.59 yuan per share, with a total market capitalization of 39.89 billion as of November 7 [7]. Group 3: Management and Compliance Measures - The Zhejiang Securities Regulatory Bureau has required Caifutong Securities to submit a written rectification report within 30 days, emphasizing the need for improved internal controls and compliance management in its derivatives business [5]. - The company has previously stated its commitment to enhancing risk management and service capabilities in its derivatives business, aiming to adapt to new market regulations [5].