Core Viewpoint - The People's Bank of China has officially released the "Management Measures for Interbank Market Brokerage Business," which will take effect on January 1, 2026, reflecting a mature and forward-looking approach to financial regulation that balances risk prevention and development [1][4]. Summary by Sections Regulatory Framework - The final version of the "Measures" consists of six chapters and 25 articles, refining the structure from the previous draft of 26 articles, indicating a more precise and streamlined regulatory framework for interbank brokerage business [2][4]. Business Scope - The "Measures" specify that brokerage institutions can provide services in the money market, bill market, gold market, interbank bond market, and related derivatives markets, but are prohibited from providing brokerage services for financial institutions participating in bond issuance [2][3]. Internal Control and Management - Enhanced internal control and process management requirements are outlined, emphasizing the management of communication tools, mandating that mobile phones and other devices used during trading hours be centrally managed [2][3]. Personnel Qualifications - The "Measures" stipulate that heads of brokerage departments must have at least five years of experience in financial markets, while brokerage personnel must have at least one year of experience, providing clear guidelines for personnel configuration [3][4]. Client Responsibilities - For the first time, the "Measures" systematically clarify the responsibilities of clients, requiring them to sign service agreements with brokerage institutions and cooperate in due diligence, thereby establishing a framework of mutual accountability [3][4]. Prohibited Behaviors - The final version of the "Measures" lists thirteen prohibited behaviors, including new additions related to false documentation and improper communication tool usage, reflecting a deeper insight into potential regulatory evasion practices [3][4]. Market Impact - The introduction of the "Measures" is part of a broader trend in financial regulation aimed at enhancing market efficiency and establishing a regulatory environment that discourages violations, marking a significant step towards the standardization of interbank brokerage business [4][5]. Industry Evolution - The "Measures" are expected to shift the industry focus from "scale competition" to "quality competition," with smaller institutions facing transformation pressures while leading firms may strengthen their market positions through compliance and system capabilities [5][6]. Future Outlook - The regulatory framework allows for future innovation, particularly in derivatives and cross-border brokerage, indicating a willingness to adapt and evolve alongside market developments [5][6].

Core Insights - The evolution of the U.S. financial regulatory system reflects a history of crisis reflection and reform balancing, significantly impacting global financial regulation [1] Group 1: Formation of Dual Regulatory Framework - The U.S. financial regulatory framework is characterized by the coexistence of state and federal regulation, which developed over time from the initial state-centric governance to a more significant federal role [2][3] Group 2: Impact of Major Financial Crises - The 1929 Great Depression led to fundamental changes in the regulatory framework, including the establishment of the Federal Deposit Insurance Corporation and the separation of commercial and investment banking [4][5] - The 2008 financial crisis prompted a comprehensive review and reform of the financial regulatory system, addressing issues of regulatory gaps and overlaps [6][7] Group 3: Evolution of Federal Reserve's Role - The Federal Reserve, established in 1913, has evolved to play a central role in maintaining financial stability and supervising financial institutions, with its responsibilities expanding significantly over the decades [8][9] - The Dodd-Frank Act enhanced the Federal Reserve's role in macroprudential regulation and systemic risk prevention, allowing it to oversee systemically important financial institutions [10] Group 4: Emergency Measures During COVID-19 - In response to the COVID-19 pandemic, U.S. regulatory agencies implemented emergency measures, including a $2 trillion stimulus package and various liquidity support programs to stabilize the economy [11][12][13] - The extensive economic relief measures, while stabilizing the economy, have also contributed to rising inflation, presenting ongoing challenges for the Federal Reserve [14]