Clifford Chance

CBRC Further Revises the Banking Derivatives Rules (Chinese)

8 February 2011

The China Banking Regulatory Commission has just published the revised Measures on the Administration of Derivatives Transactions by Banking Financial Institutions (Measures), which became effective retroactively from 5 January 2011. This briefing examines the ways in which the Measures seek to further improve regulation of derivatives transactions, most notably through a new classification system for derivatives transactions and tiered licensing regime for banking financial institutions engaged in such transactions. The briefing also looks at how the Measures monitor the launch of new derivatives products and strengthen risk management with a view to effectively addressing market risk, credit risk, operation risk and legal and compliance risk that commonly arise from derivatives transactions.

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