Core Insights - The new regulatory framework is transforming the role of interbank market brokerage, making it a crucial infrastructure for price discovery in core markets like bonds, foreign exchange, and currency [1][2] - The brokerage industry is at a turning point, shifting from risk prevention to mechanism construction, highlighting the long-term value of brokerage services [1] Regulatory Changes - New regulations require independent operation of brokerage businesses, separating them from proprietary trading, and raising the qualification thresholds for practitioners [2] - The regulations aim to transition the industry from relationship-based and experience-driven practices to a more professional approach [2] Market Competition - Competition among brokerage firms is shifting from scale to professional capabilities, emphasizing the importance of market understanding, pricing judgment, and client insights [2][3] - The new compliance requirements will reshape the market landscape, favoring institutions that can establish robust processes and transparent mechanisms [2] Organizational Challenges - Institutions face challenges beyond mere compliance, including the need for institutional, technological, and capability restructuring [3] - The brokerage business is evolving from simple matching services to providing pricing, information, and research services, resembling think-tank or research institution models [3] Long-term Outlook - The brokerage industry is moving away from marginalization, becoming a vital part of the interbank market, with its standardization directly impacting yield curve effectiveness and market liquidity stability [3] - The future of the brokerage industry will focus on light capital, strong professionalism, and heavy compliance as key development lines [3]

Core Viewpoint - The People's Bank of China (PBOC) has issued the "Administrative Measures for Interbank Market Brokerage Business" to enhance regulation and transparency in the interbank market brokerage sector, effective from January 1, 2026 [1] Group 1: Regulatory Framework - The measures consist of six chapters and twenty-five articles, covering general provisions, brokerage institutions and personnel, business management, supervision, legal responsibilities, and supplementary provisions [1] - Brokerage institutions are permitted to provide brokerage services in the money market, bill market, gold market, interbank bond market, and related derivatives markets, but are prohibited from offering brokerage services for financial institutions participating in bond issuance [1] Group 2: Operational Standards - Brokerage institutions are required to strengthen internal controls and manage the entire business process, enhancing the standardization of personnel management, due diligence, service agreements, pricing inquiries, transaction matching, information disclosure, and record-keeping [1] - Clients (entrusting parties) must sign service agreements with brokerage institutions and cooperate in due diligence, ensuring the authenticity of communications [1] Group 3: Supervision and Compliance - The measures emphasize the need for enhanced supervision and management, outlining prohibited activities in brokerage business and improving mechanisms for addressing illegal and non-compliant actions to protect the legitimate rights of market participants and maintain market order [1] - The PBOC plans to strengthen communication and collaboration with various parties to ensure the implementation of these measures and promote the healthy development of brokerage business [1]