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].