Core Viewpoint - The introduction of the new regulations for algorithmic trading in China's futures market aims to enhance regulatory oversight, improve market stability and fairness, and optimize the structure of market participants [1][2][3]. Regulatory Framework - The State Council and the China Securities Regulatory Commission (CSRC) have emphasized the need for comprehensive regulation of high-frequency trading, leading to the implementation of the "Procedural Trading Management Regulations" starting October 9, 2023 [1]. - Five futures exchanges have released their own procedural trading management measures, which will take effect on October 9, 2025, establishing a multi-layered regulatory system for algorithmic trading [1][2]. Compliance and Internal Governance - The regulations require entities engaged in algorithmic trading to complete compliance rectification within six months of the regulations taking effect, alleviating concerns about a one-size-fits-all approach [2]. - Organizations must appoint responsible personnel for compliance and risk management, shifting the focus from external penalties to internal controls [2][4]. Impact on Market Participants - The regulations are expected to significantly increase compliance costs and technical upgrade pressures for quantitative trading firms, raising the overall industry threshold [4]. - Futures companies will face enhanced responsibilities, including establishing internal systems, verifying client information, and regularly reporting to exchanges [4][5]. Market Stability and Functionality - The regulations aim to reduce potential market manipulation and ensure a fair competitive environment, leading to a more stable and orderly market operation [3][5]. - The new framework is designed to support the real economy by providing reliable risk management tools, allowing companies to better manage their hedging strategies and respond to market changes [5].

Core Viewpoint - The new regulations for algorithmic trading in China's futures market aim to enhance market order and fairness, marking a shift towards stricter oversight of high-frequency trading practices [1][3]. Group 1: Regulatory Changes - Five major futures exchanges in China have announced new rules for algorithmic trading, which will take effect on October 9, 2025, following the guidelines set by the China Securities Regulatory Commission [1]. - The new regulations require a "report first, trade later" approach, detailing management protocols for algorithmic trading reporting, system access, and risk management [1][3]. Group 2: Identification and Reporting - The regulations specify four categories of traders that must report their activities: those with high cancellation rates, fully automated decision-making systems, users of proprietary or customized trading software, and other situations deemed necessary by the exchanges [3]. - The aim is to address issues such as identity ambiguity, unfair resource allocation, and inadequate cross-market monitoring [3]. Group 3: Impact on the Industry - The new rules are expected to regulate risk management for algorithmic investors and enhance the responsibilities of investors, futures companies, and exchanges [3]. - The industry is anticipated to shift from a focus on speed to a dual approach of strategy and compliance, leading to a potential reshaping of the market landscape [4]. Group 4: Transition Period and Challenges - A six-month transition period has been established, during which existing algorithmic trading participants must comply with the new reporting requirements by April 8, 2026 [4][5]. - Companies face significant challenges, including the need to renegotiate contracts with existing clients, upgrade technical systems, and establish a reporting system to verify the authenticity of client information [5][6].

Core Viewpoint - The new regulations for algorithmic trading in China's futures market, set to be implemented on October 9, 2025, aim to enhance market order and fairness, marking a shift towards stricter oversight in algorithmic trading practices [1] Group 1: Regulatory Framework - Five major futures exchanges in China have jointly released detailed regulations on algorithmic trading, which include provisions for reporting, system access, and risk management [1] - The regulations establish a "report first, trade later" principle, requiring traders to report under specific conditions, such as executing more than 10 orders within one second on a trading day [2] Group 2: Reporting Requirements - Algorithmic traders must report significant changes in their trading information within 30 trading days, and futures companies are responsible for verifying and reporting this information [3] - The reporting requirements encompass account details, trading software information, and execution methods, ensuring comprehensive oversight of algorithmic trading activities [2] Group 3: Transition Period and Compliance - A six-month transition period will allow traders to finalize necessary agreements and reporting obligations, with specific deadlines for signing contracts and adhering to reporting protocols [4] - From April 9, 2026, traders who fail to comply with reporting requirements will be prohibited from engaging in algorithmic trading, with additional scrutiny for high-frequency traders [4] Group 4: Enforcement and Penalties - The exchanges will enforce compliance through corrective measures, including notifications and potential restrictions on trading activities for violators [4] - Serious violations by trading firms and participants may lead to more severe penalties, including formal warnings and regulatory actions [4]

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has released the "Regulations on the Management of Program Trading in the Futures Market (Trial)" to enhance the supervision of program trading and maintain market order and fairness [1][2]. Summary by Sections Overview of the Regulations - The regulations consist of 7 chapters and 37 articles, defining program trading and high-frequency trading, and stipulating that such trading must not compromise the security and normal order of the futures exchange [2]. - Traders engaging in program trading must report relevant information before trading, and futures companies and exchanges are required to regularly verify this information [2]. System Access and Management - The regulations strengthen system access management, requiring futures companies and traders to have appropriate technical systems and conduct tests, while prohibiting certain behaviors such as granting clients management access to trading information systems [2]. - A host management and trading seat management system is established, ensuring fair distribution of technical resources by futures exchanges and companies [2]. Monitoring and Risk Management - The regulations mandate real-time monitoring of program trading by futures exchanges, focusing on abnormal trading behaviors such as high order cancellation rates [3]. - Penalties for violations that affect the security of the exchange's system or normal trading order are outlined, with severe cases leading to market bans for responsible personnel [3]. Implementation and Feedback - The CSRC has incorporated feedback from public consultations into the regulations, which are aimed at enhancing the overall supervision of program trading in the futures market [4]. - Future guidance will be provided to exchanges and industry associations for the implementation of detailed business rules [4].

期货市场程序化交易迎来管理新规。 6月13日，中国证监会发布《期货市场程序化交易管理规定(试行)》(以下简称《管理规定》)，明确程序 化交易报告要求，加强系统接入、主机托管与席位管理，明确交易监测与风险管理要求，从制度层面加 强期货市场程序化交易监管，维护期货交易秩序和市场公平。《管理规定》自2025年10月9日起实施。 业内人士认为，此次发布的《管理规定》是在总结前期监管实践的基础上，坚持趋利避害、突出公平、 从严监管、规范发展的原则，加强对期货市场程序化交易的全过程监管。 坚持趋利避害、突出公平、从严监管、规范发展原则 根据交易频率不同，程序化交易可分为高频交易和中低频交易。伴随着信息技术的进步，高频交易在全 球兴起，近年来发展较快。 《中华人民共和国期货和衍生品法》第二十一条规定，"通过计算机程序自动生成或者下达交易指令进 行程序化交易的，应当符合国务院期货监督管理机构的规定，并向期货交易场所报告，不得影响期货交 易场所系统安全或者正常交易秩序"。 中国证监会高度重视期货市场程序化交易监管，多措并举，包括建立程序化交易报备制度、实施申报收 费制度、建立健全监测监控指标体系、加强异常交易行为管理等。为落实 ...

Core Viewpoint - The newly released "Regulations on the Management of Programmatic Trading in the Futures Market (Trial)" aims to enhance the regulation of programmatic trading in China's futures market, ensuring market order and fairness, with implementation set for October 9, 2025 [1][2]. Summary by Relevant Sections Regulatory Framework - The regulations consist of 7 chapters and 37 articles, focusing on comprehensive oversight of programmatic trading [2]. - Definitions for programmatic and high-frequency trading are established, with requirements to ensure that such trading does not compromise the security and normal operations of trading systems [2]. Reporting and Compliance - Traders engaging in programmatic trading must report relevant information prior to trading, and futures companies must regularly verify this information [2]. - A system access management framework is introduced, mandating that trading systems used by futures companies and traders undergo thorough testing before connecting to trading information systems [2]. Risk Management and Monitoring - The regulations emphasize the need for enhanced risk management and monitoring, requiring futures companies to strengthen risk prevention measures and promptly address emergencies [2]. - Futures exchanges are tasked with monitoring abnormal trading behaviors to maintain system security and market order [2]. Market Impact - Experts believe the regulations will promote a more standardized and transparent futures market, protecting investor rights and attracting long-term investors [3]. - The new rules are expected to lead to increased resource allocation by futures companies towards technology system testing and data management, enhancing overall system stability and security [3][4]. Future Trends - The regulations may shift the focus of programmatic trading strategies, with a potential decrease in high-frequency trading and a rise in mid-to-low frequency strategies as firms adapt to the new compliance landscape [4].

Investment Rating - Industry rating: Recommended [5] Core Insights - The non-bank financial sector index increased by 1.16%, outperforming the CSI 300 index by 1.42 percentage points, ranking 6th among all primary industries [2][13] - The average daily trading volume of A-shares reached 13,717 million yuan, a 13.5% increase month-on-month and an 88.1% increase year-on-year [18] - The issuance of new shares in the A-share market has seen 48 companies listed in 2025, raising a total of 358.6 million yuan [18] Summary by Sections Non-Bank Financial Weekly Insights - The securities sector rose by 0.82%, while the insurance sector increased by 2.06% [2][13] - Notable stock performances included *ST Rindong (+17.44%) and Nanhua Futures (+12.63%) [2][13] Regulatory Updates - The China Securities Regulatory Commission (CSRC) released new regulations for algorithmic trading in the futures market, effective from October 9, 2025, aimed at enhancing market order and fairness [3][14][37] - The new regulations include comprehensive monitoring of algorithmic trading processes and require traders to report relevant information before engaging in such activities [15][37] Insurance Sector Developments - Non-listed insurance companies will implement new accounting standards starting January 1, 2026, with provisions for simplified processing to aid smaller firms in transitioning [4][16][37] - The new standards aim to stabilize performance fluctuations observed in listed insurance companies since their implementation [16][37]

Core Viewpoint - The new regulations for algorithmic trading in the futures market aim to enhance oversight and management of high-frequency trading, effective from October 9, 2023 [2][3]. Group 1: Regulatory Framework - The "Regulations on the Management of Algorithmic Trading in the Futures Market (Trial)" consists of 7 chapters and 37 articles, focusing on reporting requirements, system access, and risk management [2]. - The regulations emphasize the need for comprehensive monitoring and information sharing among exchanges to ensure market order and system security [2][3]. Group 2: Reporting Requirements - Algorithmic traders must provide accurate and complete reports, including account information, trading strategies, and technical system details [3]. - High-frequency traders are specifically required to disclose their trading strategy types, maximum order cancellation frequency, daily maximum cancellation counts, server locations, and risk control measures [3]. Group 3: Monitoring and Management - Futures exchanges are tasked with closely monitoring high-frequency trading activities and can implement differentiated management of trading fees and limits [3]. - Regular audits of reported information from algorithmic traders are mandated, focusing on compliance with reporting standards [3]. Group 4: Penalties and Accountability - Violations of the regulations can lead to penalties under the Futures and Derivatives Law, including market bans for severe infractions [4]. - The regulations also stipulate accountability for significant losses or negative impacts resulting from negligence in regulatory duties [4].

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has released the "Regulations on the Management of Program Trading in the Futures Market (Trial)" which will take effect on October 9, 2025, aimed at enhancing the regulation of program trading in the futures market and ensuring market order and fairness [1][2]. Summary by Sections - The regulations consist of 7 chapters and 37 articles, focusing on comprehensive supervision of program trading in the futures market [2]. - The regulations define program trading and high-frequency trading, stipulating that program trading must not affect the security and normal order of the futures exchange system [3]. - There are reporting requirements for program trading, where traders must report relevant information before engaging in program trading and can only proceed after receiving confirmation; futures companies and exchanges are required to periodically verify the reported information [3]. - The regulations strengthen system access management, requiring futures companies and traders to have the necessary technical capabilities and conduct testing, while also outlining prohibited behaviors in access management [4]. - There are provisions for host management and seat management, establishing a reporting system for host management information and a seat management system, ensuring fair distribution of technical resources by futures exchanges and companies [4]. - The regulations specify monitoring and risk management requirements, mandating that futures companies and traders enhance risk prevention and promptly address emergencies; futures exchanges must monitor abnormal trading behaviors to ensure system security and maintain market order [4]. - The regulations clarify the supervisory arrangements, allowing the CSRC and its agencies to conduct administrative supervision, while futures exchanges and the China Futures Association manage self-regulation according to business rules [4]. - The regulations also outline applicable arrangements for relevant entities [5]. - The CSRC will guide futures exchanges and the China Futures Association in developing related business details to ensure the implementation of the regulations [6].

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has released the "Regulations on the Management of Programmatic Trading in the Futures Market (Trial)" to enhance the regulation of programmatic trading, ensuring market order and fairness [1][7]. Summary by Sections Section 1: Definitions and Reporting Requirements - The regulations define programmatic trading and high-frequency trading, emphasizing that such trading must not compromise the security and normal order of the futures exchange [2]. - Traders engaging in programmatic trading must report relevant information before proceeding, and futures companies and exchanges are required to regularly verify this information [2]. Section 2: System Access and Management - The regulations strengthen system access management, mandating that the technical systems of futures companies and traders must have specific functionalities and undergo testing [2]. - Prohibited behaviors include futures companies not allowing clients to manage trading information systems and programmatic traders not using systems for illegal futures business [2]. Section 3: Hosting and Seat Management - A reporting system for host management information and a trading seat management system are established, ensuring fair distribution of technical resources by futures exchanges and companies [2]. - Futures companies must manage host resources and are prohibited from providing services to programmatic trading clients with frequent abnormal trading behaviors [2]. Section 4: Monitoring and Risk Management - The regulations require futures companies and traders to enhance risk prevention and promptly address emergencies, while exchanges must monitor abnormal trading behaviors to ensure system security [2][4]. - Real-time monitoring of programmatic trading is mandated, with a focus on high-frequency trading behaviors, including the potential implementation of fees and trading limits [4]. Section 5: Supervision and Enforcement - The CSRC and its agencies will conduct administrative supervision, while futures exchanges and the China Futures Association will manage self-regulation according to business rules [3]. - Penalties for violations that affect the security or normal order of the futures exchange are outlined, including potential market bans for responsible personnel [5]. Section 6: Industry Context and Future Steps - The rise of high-frequency trading globally is acknowledged, with the CSRC implementing various measures to regulate programmatic trading, including reporting systems and monitoring indicators [6]. - The regulations were developed based on prior regulatory practices and public feedback, with plans for future detailed business rules to ensure effective implementation [7].