.jpg)
The Shanghai Stock Exchange (SSE) issues the “SSE Detailed Rules on Real-time Supervision on Abnormal Trading of Securities” (the “Detailed Rules” for short) on December 17. It is learnt that the “Detailed Rules” is regarded as the SSE’s all-round amendments to the “SSE Guidance for Real-time Supervision on Abnormal Trading of Securities” (the “Guidance” for short) released by it on May 14, 2008.
According to an official of the SSE, in over 5 years since release of the “Guidance”, the SSE has successively issued some supplementary rules to strengthen the regulation on trading at preliminary stage of new shares listing, the regulation on shares trading on the risk alert board, and others. Besides, new illegal securities trading behaviors have emerged one after another over recent years, which requires urgent improvement of the existing rules on market supervision. As a result, the SSE has formulated the “Detailed Rules” on the basis of the “Guidance”, so as to meet the need of market development, as well as sort out and integrate businesses rules on time.
Compared with the “Guidance”, the “Detailed Rules” recently released has changed contents mainly in the following 3 aspects:
First, the rule of in-session temporary trading suspension for bonds trading is added. Presently, the SSE has not yet set any price limit for bonds trading, as some bonds lack liquidity, abnormal fluctuations of prices in bonds trading are frequent, which could lead to dramatic fluctuations in bond indices. Regarding this situation, a rule of the SSE taking the measure of "In-session Temporary Trading Suspension" was added to the “Detailed Rules” in case of abnormal fluctuations of prices in bonds trading.
Second, the “Detailed Rules” has integrated contents related to the regulation on abnormal securities trading in the existing business rules. They include:
1. The rule about in-session temporary trading suspension has been added. In addition to supplementing the rule on in-session temporary trading suspension for bonds trading, the “Detailed Rules” has added the regulation on in-session temporary trading suspension of shares without price limit (including new shares, shares in additional issuance, shares whose listing is resumed, and shares on the first day when they are relisted), the regulation on in-session temporary trading suspension of shares with price limit and risk alert, and others.
2. The measure of self-disciplinary regulation has been supplemented. With an aim to strengthen the regulation on trading at preliminary stage of new shares listing, on December 13, 2013, the SSE issued the "Notice on Further Strengthening Regulation on Trading at Preliminary Stage of New Shares Listing", in which the regulatory measure of in-session temporary trading suspension of the securities account on the very day was added. The amendments this time have integrated this measure and some regulatory measures prescribed in other business rules.
3. Trading suspension of shares for examination has been added. As speculation on theme-related shares has been a particular problem in the regulation, trading suspension is imposed on listed companies for examination. It is specified in the amendments this time that if trading limit of the shares with price limit in a certain period dramatically strays from trading limit of the comparable index in the same period and relevant listed company does not make an announcement on significant issue, the SSE could require the listed company to suspend shares trading for examination while the listed company should examine its information disclosure, relevant market rumors, and others, and announce on time the result of the examination to the market.
Third, regulations on abnormal securities trading are perfected. With more use of information technologies (such as program trading) in the securities industry in recent years, new illegal securities transactions have appeared. Lacking pertinent regulations, the existing business rules need to be supplemented. Besides, as there are some overlapping problems in the regulations on abnormal securities trading behaviors mentioned in the existing business rules, relevant articles have been integrated and rationalized in the amendments this time to reinforce explicitness and uniformity of the business rules.
The official of the SSE says that the SSE will implement the “Detailed Rules”, monitor over all kinds of abnormal trading behaviors, and crack down on illegal behaviors, in a bid to build an open and fair securities market and protect interests of investors.
