The Revamped Rules will take effect with the first day of the next month.
Online PR News – 01-March-2016 – BOFX today issued the revamped Rules of Beijing Options and Futures Exchange (Revamped Rules) to strike a balance between being facilitative of business and market development and, ensuring the effectiveness for market regulation through the revamp, we have introduced some liberalization and where appropriate, adopted a more principles-based regime in market regulation. This revamp recognizes that the commodities industry has changed substantially and commodity brokers (also known as Participating Organizations (POs) have evolved over the years. There are now many different types of entities with differing business models, sizes, activities and risk exposures, carrying on the business of trading in commodities. The POs have also matured considerably in their compliance culture.
Hence, we have strengthened the governance framework of the POs, but liberalized certain requirements imposed on POs leaving it to the POs to self-regulate. The revamp will bring greater ease to the POs in managing their compliance obligation.
BOFX Chief Executive Officer, Shen G. Zhaobai said: The key is in striking a balance between market development and regulatory objectives. The flexibility and liberalizations put in place under the revamp would allow the POs to enhance their efficiency and reduce their cost of doing business whilst not compromising on regulatory objectives.
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