New business regulations for OTC options include hierarchical management of securities firms; significantly raising the threshold for counterparties; clarifying the underlying objects linked to OTC options, etc.

1. Primary dealers and secondary dealers

The new regulations stipulate that securities companies can serve as primary dealers and open on-site individual stock hedging transactions on the Shanghai and Shenzhen stock exchanges. Dedicated account for direct hedging transactions. As secondary dealers, securities companies conduct derivatives transactions with primary dealers to hedge individual stock risks, and are not allowed to conduct on-site individual stock hedging transactions on their own or with non-primary dealers.

The primary dealer must have a classification rating of Class A or above AA in the latest year; the secondary dealer must have a classification rating of Class A or above in the last year.

When a secondary dealer applies for hedging with a primary dealer, the primary dealer shall determine whether to accept the hedging transaction based on its own contract design requirements and subject scope. If the primary dealer refuses to accept it, the secondary dealer shall Dealers are not allowed to enter into trading contracts with customers.

2. Counterparty?

The counterparty of a securities company's OTC options business should be a professional institutional investor that complies with the "Measures for the Administration of Suitability of Securities and Futures Investors" and Meet the following conditions:

(1) For legal persons to participate, the net assets at the end of the last year shall not be less than 50 million yuan, the financial assets shall not be less than 20 million yuan, and the securities, funds, Futures, gold, foreign exchange and other related investment experience.

(2) If an asset management institution participates on behalf of the product, the scale of financial assets under management at the end of the last year shall not be less than RMB 500 million, and it shall have more than 2 years of experience in financial product management.

(3) Product participation shall be a non-structured product established in compliance with regulations, with a scale of not less than 50 million yuan, and meet the following conditions

(1)? Among the transparent clients, if a single investor's equity in the product exceeds 20%, it should meet the basic standards of professional investors in the "Measures for the Suitability Management of Securities and Futures Investors" and have financial assets of no less than 20 million yuan at the end of the most recent year. RMB, with more than 3 years of relevant investment experience in securities, funds, futures, gold, foreign exchange, etc.;

(2) The total option premium paid for OTC options and the initial margin paid shall not exceed 30% of the product scale. %.

3. Linked target

If a securities company develops domestic over-the-counter stock options, the linked target should be a domestic index or have been publicly listed for no less than 6 months and have good liquidity. Non-ST, *ST stocks.

4. Verification of investor identity and source of funds

Brokerages must verify the true identity of investors, especially private equity funds and other non-licensed institutions, the legality of their source of funds, and the requirements for product contracts. Verify whether the investment in OTC options is agreed upon and whether the relevant risks are disclosed; prudently verify the investor’s true transaction purpose, verify whether the investor has real risk management needs, and confirm that the relevant investment complies with laws and regulations; confirm that the counterparty’s source of funds is The funds obtained or raised in accordance with laws and regulations do not illegally collect funds from others or violate anti-money laundering regulations.

5. Net capital constraints

Implement net capital constraints on the size of OTC options. The scale of proprietary equity securities and derivatives corresponding to OTC individual stock option business shall not exceed 20% of the net capital (the scale of OTC derivatives contracts that are fully offset shall not be included in the calculation), and the business shall continue to comply with regulations for two consecutive years. , shall not exceed 30% of the net capital, and shall not exceed 50% if it has been in compliance for three consecutive years; the notional principal of all contracts linked to a single stock when conducting over-the-counter stock options (over-the-counter derivatives contracts that are fully offset are not included in the calculation) ) accounts for no more than 5% of its total market value.

6. Some prohibited behaviors

Improper promotion and promotion. Securities companies are not allowed to publicize to the public through the Internet, self-media or any other means, or induce unqualified investors to participate in OTC options transactions.

Alienated into a leveraged financing tool. Securities companies are not allowed to provide financing or disguised financing services to investors through option portfolio strategies, early termination clauses, etc. In addition to paying a fixed option premium, the option buyer shall not be required to pay a margin in any form.

Become a trading channel for investors in disguise. Securities companies are not allowed to lend securities accounts to investors, are not allowed to conduct hedging securities sales directly based on investor instructions, are not allowed to sell hedging positions to third parties designated by investors, and are not allowed to use customer margins in accordance with customer instructions.

7. The transition period is until August 1st

The transition period is until August 1, 2018. During the transition period, companies with top market share rankings and classification ratings in the most recent year are temporarily allowed. Securities companies rated AA in Class A and with strong risk management capabilities shall continue to carry out over-the-counter options business in strict accordance with the requirements of this notice. Other securities companies are not allowed to add OTC options business. Those who have not obtained approval at the end of the transition period will not be allowed to operate.