On June 5, Shenzhen Stock Exchange (“SZSE”) held the scheduled annual seminar of “Trading Rules Day” in Shenzhen City. Representatives were invited from China Securities Regulatory Commission, Hong Kong Stock Exchange, Taiwan Stock Exchange and some foreign investment institutions as well as domestic brokers, fund and quantitative platform companies. The theme of this year’s seminar was “New Types of Trading Behaviors and Optimization of Trading Systems”. Attendees put heads together to discuss the characteristics of new trading behaviors and issues that would incur in the supervision, building consensus for the optimization of trading systems in the next move.
In the recent years, trading mechanism, trading platform and trading supervision are confronted with new requirements and challenges in the wake of the securities markets emerged with innovative products and business, the increasingly diversified and complicated arbitrage and hedge strategies used by market players, and the new trading behaviors such as quantitative investment and algorithmic trading that have sprung up. In this year’s seminar, on the one hand, participants brainstormed to optimize trading systems based on dissection of the characteristics of new trading behaviors and the experience in overseas market development; on the other hand, they probed into the supervision challenges brought up by algorithmic trading and other complicated trading behaviors, looking for broader vision and minds for the optimization of supervision modes.
A Research Center for Trading Systems was especially established by SZSE this year, as introduced by relevant principals. It is an important move in the enforcement of institutional building of fundamental trading systems. The research center with stable personnel will conduct long-term studies in trading systems, keep track with overseas development trends, and propel the self-criticism and optimization of trading systems. Trading systems have the direct bearing on market security, efficiency and investor protection. Based on the current characteristics of multi-tiered capital markets and investor structure, SZSE would protect the legal rights and interests of all investors including mid and small cap investors sticking to the principles of “fairness, orderliness and transparency”. It will also optimize trading systems as well as supervision modes, strengthen the supervision over abnormal trading, propel intermediaries to fulfill their self-discipline responsibilities, improve investor suitability management mechanism, and lay a solid foundation for the development of multi-tiered capital markets.
It is known that SZSE will make amendments to the “Trading Rules” based on the findings from this seminar, optimizing block trade mechanism and supervision over trading behaviors.
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