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].

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].

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has announced the "Regulations on the Management of Programmatic Trading in the Futures Market (Trial)" aimed at strengthening the regulation of programmatic trading in the futures market and maintaining trading order and market fairness, effective from October 9, 2025 [1][3]. Summary by Sections Regulation Overview - The "Management Regulations" consists of 7 chapters and 37 articles, focusing on comprehensive regulation of programmatic trading in the futures market [4]. Definitions and Reporting Requirements - The regulations define programmatic trading as trading conducted through computer programs that automatically generate or submit trading instructions. High-frequency trading is characterized by high frequency of order submissions and cancellations within a short time frame [5]. - Traders engaging in programmatic trading must report relevant information before trading, and futures companies must regularly verify this information [5]. System Access and Management - Futures companies and traders must ensure their technical systems meet specific requirements and undergo testing. The regulations prohibit certain behaviors, such as sharing management rights of trading information systems with clients [6]. Monitoring and Risk Management - The regulations require futures companies and traders to enhance risk prevention and promptly address emergencies. Futures exchanges must monitor abnormal trading behaviors in real-time to ensure system security and maintain market order [7]. Supervision and Implementation - The CSRC and its local agencies will conduct administrative supervision, while futures exchanges and the China Futures Association will perform self-regulation according to business rules. The regulations will take effect on October 9, 2025, with a six-month compliance period for existing programmatic trading activities [8].