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]

Core Viewpoint - The People's Bank of China has issued the "Interbank Market Brokerage Business Management Measures" to enhance regulation and transparency in the interbank market brokerage business, effective from January 1, 2026 [1][2] Group 1: Key Provisions of the Measures - The measures consist of six chapters and twenty-five articles, covering general principles, 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] - Brokerage institutions are required to strengthen internal controls and manage the entire business process, enhancing the standardization of personnel management, due diligence, contract services, pricing inquiries, transaction matching, information disclosure, and record-keeping [1] Group 2: Responsibilities and Supervision - The measures clarify the responsibilities of the entrusting parties, who must sign service agreements with brokerage institutions and assist in due diligence while managing communication tools to ensure the authenticity of entrustments [1] - There will be strengthened supervision and management, with clear prohibitions on certain brokerage activities, and an improved mechanism for investigating and penalizing illegal activities to protect the legitimate rights of market participants and maintain market order [1]

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].