President Zhang Yujun of the Shanghai Stock Exchange (SSE) said that the SSE will, recently, take 7 measures including an early introduction of the "Detailed Rules on Members' Management of Clients' Securities Trading" and the enhancement of innovation for promotion of the implementation of the "Rules on Supervision over Securities Companies" and the "Rules on Risk Disposal of Securities Companies" (the Two Rules).
Firstly, the SSE will streamline and perfect relevant business rules. The SSE will soon introduce the "Detailed Rules on Members' Management of Clients' Securities Trading", for the purpose of offering detailed business rules to supplement the rules system regarding members' management. Meanwhile, the SSE will carefully review its business rules and timely revise any controversial or inconsistent part with the Two Rules.
Secondly, the management on members' trading jurisdiction should be strengthened with the development of innovative products and mechanism on the market. Based on the strict market entrance requirements for securities companies stipulated by the Two Rules, the SSE will continue its effort to enhance the management of members' trading jurisdiction. With members' net capital, size, operation performance and technical system being taken into consideration, members' trading jurisdiction will be monitored in a dynamic manner in such aspects as products, modes and sizes.
Thirdly, the SSE will enhance members' risk management capability and service quality. With an eye on improving members' client management, the SSE will encourage members to get a better knowledge of their clients, to provide appropriate products and services, to fully disclose risks to clients, and to early detect and deal with clients' abnormal trading activities.
Fourthly, the SSE will improve members' technical monitoring capability and safeguard the information management. Per the principle of safe operation, the SSE should enhance members' management of trading and related technical systems. Timely, it will draft the "Guideline for Technical Standardization and Operation Management of Member's Trading and Related Systems" and encourage members to adopt various measures to ensure safe operation of the securities market.
Fifthly, the SSE will rigorously educate investors and foster qualified investors. Although it has set up a special division for investor education, it should not stop at this. The SSE should strengthen investor education and encourage and guide members in the commitment of investor education.
Sixthly, the SSE will cooperate in the risk disposal of securities companies, move relentlessly to remove unqualified members from the market, and complete its finishing touches on comprehensive governance of securities companies.
Last but not least, the SSE should, in a positive way, support members' regularized growth and promote the healthy development of the trade by establishing the long-term mechanism. To achieve this, the SSE will, firstly, intensify its innovative work through providing more innovative products and better trading mechanism to the market; secondly, facilitate securities companies' business and product innovation by offering matched technical and operational services; thirdly, in accordance with the Two Rules' regulations on margin trading and securities lending, draft detailed rules and business operation procedures to pave the way for the smooth and regularized running of the margin trading and securities lending.