(1) Financial institutions avoid the risks of their own assets and liabilities or make profits in derivatives transactions. Financial institutions are regarded as the end users of derivative products when they engage in such business.
(2) Financial institutions provide derivatives trading services to customers (including financial institutions). Financial institutions are regarded as derivatives traders when they engage in such business, and traders who can provide derivatives quotation and trading services for other traders and customers are regarded as derivatives market makers. Article 5 China Banking Regulatory Commission is the regulatory body for financial institutions to engage in derivatives trading. Financial institutions offering derivatives trading business shall be approved by the China Banking Regulatory Commission and subject to the supervision and inspection of the China Banking Regulatory Commission.
Non-financial institutions may not provide derivative products trading services to customers. Article 6 Financial institutions engaged in derivatives transactions related to foreign exchange, stocks and commodities, as well as on-site derivatives transactions, shall abide by the relevant provisions of the State on foreign exchange control. Chapter II Administration of Market Access Article 7 A financial institution applying to engage in derivative trading business shall meet the following conditions:
(1) It has a sound risk management system and internal control system for derivatives trading;
(2) It has a perfect business processing system and real-time risk management system for automatic connection before, during and after derivative transactions;
(3) The person in charge of derivative trading business shall have more than 5 years' experience of directly participating in derivative trading activities and risk management, and have no bad records;
(4) There are at least two traders who have been engaged in derivative products or related transactions for more than two years and have received special training in related derivative products trading skills for more than half a year, at least 1 risk manager and at least 1 risk model researcher or risk analyst; All the above personnel are required to be full-time personnel, and shall not hold concurrent positions with each other, with no bad records;
(5) Having proper trading places and equipment;
(6) When a branch of a foreign bank applies to start derivative trading business, its home country should have a legal framework to supervise derivative trading business, and its home country's regulatory authorities should have corresponding regulatory capabilities;
(7) Other conditions stipulated by China Banking Regulatory Commission.
Where a branch of a foreign bank applies to start derivatives trading and does not meet the above conditions (1) to (5), it shall also meet the following conditions (6) and (7):
(1) Obtaining the official authorization of the head office (regional headquarters) on the varieties and limits of derivative products trading of the branch;
(2) Unless otherwise stipulated by the Head Office, all derivatives transactions of branches shall be conducted in real time through the authorized head office (regional headquarters) system, and the head office (regional headquarters) shall uniformly conduct flat trading, exposure management and risk control. Article 8 Policy banks, Chinese-funded commercial banks (excluding city commercial banks, rural commercial banks and rural cooperative banks), trust and investment companies, finance companies, financial leasing companies and auto financing companies shall apply to the China Banking Regulatory Commission by their legal persons, and be examined and approved by the China Banking Regulatory Commission.
City commercial banks, rural commercial banks and rural cooperative banks shall submit application materials to the local banking regulatory bureau by their legal persons, and report them to the China Banking Regulatory Commission for approval after examination and approval.
Foreign-funded financial institutions offering derivatives trading business shall submit application materials signed by authorized signatories to the local banking regulatory bureau, and report them to the China Banking Regulatory Commission for approval after examination and approval; If a foreign-funded financial institution intends to open derivative trading business in two or more branches in China, the headquarters of the foreign-funded legal person institution or the main reporting bank of a foreign bank may submit the application materials to the local banking regulatory bureau in a unified manner, and after examination and approval, submit them to the China Banking Regulatory Commission for examination and approval. Article 9 A financial institution applying for derivative trading business shall submit the following documents and materials (in triplicate) to the China Banking Regulatory Commission or its dispatched office:
(1) An application report, a feasibility report, a business plan or a trading exhibition plan for starting derivative trading business;
(2) The internal management rules and regulations of the derivative trading business;
(3) Accounting system for derivative products transactions.
(four) the names and resumes of the person in charge and the main traders;
(5) The authorized management system of risk exposure quantification or limit;
(6) Safety test reports of trading places, equipment and systems;
(7) Other documents and materials required by China Banking Regulatory Commission.
In addition, branches of foreign banks that do not meet the conditions listed in Items (1) to (5) of Paragraph 1 of Article 7 shall also submit the following documents to the local banking regulatory bureau:
(1) The official written authorization document of the head office (regional headquarters) on the varieties and limits of derivative products trading of the branch;
(2) Unless otherwise stipulated by its head office, a letter of commitment issued by its head office (regional headquarters) guarantees that all derivative products transactions of the branch are conducted in real time through the trading system authorized by the head office (regional headquarters), and its head office (regional headquarters) is responsible for flat trading, exposure management and risk control.