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The Shenzhen Stock Exchange issued the Guidelines on the Management of Client Trading Behaviors of SSE Members.
The Guidelines require its member institutions to reach an agreement with their clients that in case any client violates relevant regulations in using his securities account or commits any trading behaviors that severely affect normal trading order, the members can refuse the client’s authorization or terminate the principal-agent relationship. Meanwhile, the SSE also required its members to appoint special organs to take charge of trading compliance management.
According to the exchange, as the comprehensive overhaul of securities firms came to the end and a conventional regulation resumes, enhancing the risk management capabilities of securities companies is placed top on the agenda.
Under the Guidelines, members should assume more responsibilities in managing client trading activities, put emphasis on investor education, and perform due risk alert obligations.
A source with the bourse said that, the Guidelines aimed to regulate trading behaviors of investors amid increasing market volatility and clamp down on speculations. The bourse has taken a series of measures this year to maintain market order and reinforce self-discipline. The exchange, through the release of the Guidelines, specifies the responsibilities of its members in managing client trading behaviors, which is conducive to enhancing their internal management, client services, and promoting long-term stability and development of the market.
