Core Viewpoint - The People's Bank of China has drafted and released the "Interbank Market Brokerage Business Management Measures (Draft for Comments)" to regulate brokerage activities in the interbank market, emphasizing the prohibition of certain activities by brokerage institutions [1][2]. Group 1: Regulatory Framework - The draft consists of 26 detailed provisions aimed at regulating brokerage institutions, including prohibiting them from participating in primary bond issuance and OTC bond business [1]. - The measures highlight the increasing influence of brokerage firms in the interbank market, with a total transaction volume of 433 trillion yuan in the past year, accounting for 20% of the overall market transactions [1]. Group 2: Brokerage Institution Requirements - Brokerage institutions are allowed to provide services for transactions in bonds, repos, and derivatives but must not engage in primary bond issuance or OTC bond activities [2]. - Institutions entering the interbank market must report to the central bank, and non-specialized brokerage firms must establish independent brokerage departments, ensuring strict separation from proprietary trading [2]. Group 3: Information Disclosure and Compliance - The draft mandates real-time, complete, and accurate disclosure of optimal brokerage quotes and transaction information, enhancing transparency in the matching process [2]. - It specifies that communication tools used by brokerage firms must be strictly separated from personal communication tools, with records retained for at least five years [2]. Group 4: Prohibited Activities - The draft outlines 13 prohibited activities for brokerage firms, including the ban on proprietary trading, providing services to unqualified clients, and using information advantages for improper gains [2]. Group 5: Supervision and Enforcement - The central bank and its branches are authorized to supervise and enforce compliance in the interbank market brokerage business, with penalties for violations including warnings, public criticism, or fines [3]. - Infrastructure institutions will conduct frontline monitoring, while self-regulatory organizations in the interbank market will manage self-discipline [3].

Core Viewpoint - The People's Bank of China has drafted and released the "Interbank Market Brokerage Business Management Measures (Draft for Comments)" to regulate brokerage activities in the interbank market, emphasizing the importance of brokerage firms in enhancing market efficiency and liquidity [1][2]. Group 1: Regulatory Framework - The draft consists of 26 detailed provisions that clarify the types and scope of brokerage institutions, including monetary brokerage companies and other financial institutions providing brokerage services [2][3]. - Brokerage institutions are prohibited from participating in primary bond issuance and over-the-counter bond business, ensuring a clear delineation of their roles [3]. Group 2: Operational Requirements - Brokerage institutions must report to the central bank before entering the interbank market and must establish independent brokerage departments to separate brokerage activities from proprietary trading [3]. - The draft mandates real-time, complete, and accurate disclosure of optimal brokerage quotes and transaction information, enhancing transparency in the transaction process [3]. Group 3: Compliance and Monitoring - The draft outlines 13 prohibited behaviors for brokerage firms, including holding positions in trades, providing services to unqualified clients, and using information advantages for improper gains [3]. - The central bank and its branches are authorized to conduct enforcement inspections on brokerage institutions, while self-regulatory organizations will monitor their activities [3].

Core Viewpoint - The People's Bank of China has drafted and released the "Interbank Market Brokerage Business Management Measures (Draft for Comments)" to regulate brokerage activities in the interbank market, consisting of 26 detailed provisions that prohibit brokerage institutions from participating in primary bond issuance and over-the-counter bond business [1][3]. Group 1: Overview of Brokerage Companies - Brokerage companies serve as intermediaries in financial market transactions, with their influence on interbank market trading increasing in recent years. In 2024, the trading volume through brokerage institutions in the interbank market is expected to reach 433 trillion yuan, accounting for 20% of the total market trading volume [2]. - The central bank's draft highlights that brokerage companies have become a hub connecting various market participants, significantly impacting secondary market information aggregation, pricing, trading efficiency, and market liquidity [2]. Group 2: Regulations and Requirements - The Measures comprehensively regulate brokerage business, including defining the types and scope of brokerage institutions, entry requirements, and risk isolation mandates. It also strengthens client qualification management, information disclosure, and communication tool usage [3][4]. - Brokerage institutions are required to provide services for transactions in interbank market bonds, repos, and derivatives but are prohibited from participating in primary bond issuance and over-the-counter bond business [5]. - Brokerage institutions must report to the central bank when entering the interbank market. Non-brokerage firms like securities companies must establish independent brokerage departments, ensuring strict separation from proprietary trading [6]. - The Measures mandate real-time, complete, and accurate public disclosure of optimal brokerage quotes and transaction information, enhancing transparency in the transaction process. Communication tools used by brokers must be strictly isolated from personal tools, with all communications recorded and retained for at least five years [6]. Group 3: Prohibited Activities and Oversight - The Measures outline 13 prohibited activities for brokerage personnel, including the strict prohibition of holding positions in trades, providing services to unqualified clients, exploiting information advantages for improper gains, and assisting clients in evading regulations [6]. - The central bank and its branches are authorized to conduct enforcement inspections on brokerage institutions, while relevant market infrastructure will monitor brokerage activities through specific systems. Self-regulatory organizations in the interbank market will manage brokerage institutions [7].