With an aim of standardizing the pilot program of stock option by option dealers, the Shanghai Stock Exchange (SSE) and China Securities Depository & Clearing Corp., Ltd. (CSDC) have jointly formulated the “Sample Brokerage Agreement for SSE Stock Option Pilot Program” and the “Essential Articles of Risk Disclosure Statement for Stock Option” (see attachments). The two documents are hereby released, and all the relevant parties are required to abide by them.
Option dealers should, in accordance with the above-mentioned documents, formulate the “Agreement on Brokerage of Stock Option” and the “Risk Disclosure Statement for Stock Option”, and work out, in accordance with the “SSE Guidance for Investor Suitability Management for Pilot Program of Stock Option”, the operation guidance for investor suitability management of stock option and relevant working systems. Besides, they should fully remind investors of major risks, especially explain to them the differences between trading of stock options and that of securities and futures contracts, properly carry out the work of investor suitability management and investor education, take effective measures to learn and check investors’ awareness of stock options’ risks, and launch continuously the work of investor suitability management and investor education.
Since the release day of the notice, option dealers can sign the “Agreement on Brokerage of Stock Option” and the “Risk Disclosure Statement for Stock Option” with investors.
Shanghai Stock Exchange, China Securities Depository & Clearing Corp., Ltd.
January 9, 2015