The market making rules for the Sci-Tech Innovation Board have been released, and market makers will be introduced in a pilot way in the initial stage.
On May 13, the China Securities Regulatory Commission issued the "Securities Company The “Regulations on the Pilot Program of Stock Market Making and Trading Business on the Science and Technology Innovation Board” (referred to as the “Regulations on Market Making”), clarifies that a pilot method will be adopted to introduce a market maker mechanism on the Science and Technology Innovation Board at the initial stage, allowing some companies to have standardized governance, sound internal control mechanisms, stable operations, and anti-risk. securities companies with strong capabilities will conduct market-making transactions. Actively improve relevant systems.
Eligible brokers can qualify as market makers
There are seventeen articles in the "Regulations on Market Making", which mainly include the conditions and procedures for market maker access, in-process and post-event supervision and other aspects.
In terms of access conditions, in accordance with the principle of "stable start, risk controllable", initially participating in the pilot securities In addition to having a sound business plan, professionals, technical systems and other conditions, the company also needs to meet two conditions in terms of capital strength and compliance and risk control capabilities. First, the net capital in the last 12 months should not be less than 10 billion yuan; the second is that the classification rating in the last three years is above Class A (inclusive).
Specifically, market makers need to have securities proprietary business qualifications; the net capital for the last 12 months shall not be less than 10 billion yuan; the classification rating in the last 3 years is above Class A (inclusive) ; Risk control indicators such as net capital in the last 18 months have continued to meet the prescribed standards; The internal management system and risk control system are sound and effectively implemented; There are sufficient professionals matching the business, and the company is in charge of the senior management of the market-making and trading business Personnel, chief risk officer, etc. have the corresponding professional capabilities;
The implementation plan of the stock market-making trading business on the Sci-Tech Innovation Board is fully prepared, and the technical system has the conditions for conducting business and has passed the evaluation test organized by the Shanghai Stock Exchange; the company In the past year, the company has not been subject to administrative punishment or investigated for criminal responsibility for major violations of laws and regulations; the company has not experienced major or above-level information security incidents in the past year.
Approved by the China Securities Regulatory Commission to obtain market-making and trading business qualifications for listed securities, they may conduct securities market-making trading business on other exchanges in accordance with regulations.
Technical systems for securities firms need to pass the assessment test for business qualifications approved by the CSRC
The "Regulations on Market Making" clarifies that qualified securities firms can submit Relevant market-making trading business application materials. In view of the strong professionalism of the market-making transaction business and the high requirements for the technical system of securities companies, the "Market-Making Regulations" clearly stipulates that the Shanghai Stock Exchange shall evaluate and test whether the technical systems of securities companies have the conditions to conduct business. Those who pass the evaluation test apply to the China Securities Regulatory Commission, and the China Securities Regulatory Commission will approve the business qualifications.
A securities company applying for the pilot qualification of the stock market-making trading business on the Science and Technology Innovation Board shall submit an application to the CSRC; Shareholders(large) meeting or board The resolution document on launching the stock market-making trading business on the Sci-Tech Innovation Board; the implementation plan and internal management system text of the Sci-Tech Innovation Board stock market-making business. The implementation plan includes but is not limited to department setup, staffing, system construction, risk control measures, business Preparations, etc.; the basic information of senior managers, chief risk officers and business personnel responsible for the market-making and trading business of stocks on the Sci-Tech Innovation Board, including relevant documents for the appointment and filing of senior management personnel, business personnel list, and resumes; Sci-tech innovation issued by the Shanghai Stock Exchange board stockThe technical system test report of the ticket market-making trading business.
Securities companies shall, in accordance with relevant laws and regulations, the provisions of this pilot program and the business rules of the Shanghai Stock Exchange, conduct market-making and trading business for stocks on the STAR Market, and perform bilateral continuous quotations for stocks on the STAR Market. , bilateral response to quotation and other obligations. Securities companies that conduct stock market-making and trading business on the Science and Technology Innovation Board may use their own stocks, stocks borrowed from China Securities Finance Corporation Limited, or other stocks that they have the right to dispose of.
The market-making shareholding of the Science and Technology Innovation Board shall not exceed 5%
In order to prevent the potential potential of market-making trading business and brokerage, proprietary business, asset management and other businesses Conflicts of interest, the "Market Making Regulations" put forward strict requirements on the pilot securities companies. The first is to improve the business isolation system, to prevent the improper flow of sensitive information, and to prevent conflicts of interest; the second is to establish and improve the internal control, decision-making process, and check and balance mechanism for the market-making transaction business to ensure that the business is carried out in a standardized and orderly manner; the third is to
Strengthen the management of market-making transactions, improve the risk prevention and control and anti-money laundering requirements for honest business practices, and prevent violations of laws and regulations such as transfer of interests, insider trading, and market manipulation.
At the same time, in terms of risk monitoring and monitoring, in order to promote the standardization of market-making trading pilots, start prudently, and play an active role in enhancing market liquidity and market resilience, the "Market-Making Regulations" requires pilot securities companies to: 1. It is to incorporate the market-making transaction business into the comprehensive risk management system, improve the risk monitoring indicators, and do a good job in business risk prevention and control; the second is to establish and improve the monitoring mechanism for abnormal transactions, report to special accounts, and accept all-round monitoring by the Shanghai Stock Exchange to prevent any impact on market stability. The third is to calculate and fill in the risk control indicators with reference to the standard of self-operated stocks. In principle, the market-making shareholding of the Sci-Tech Innovation Board shall not exceed 5%, which shall be specified in the specific business rules of the Shanghai Stock Exchange. The fourth is to handle emergencies and fulfill information Reporting obligations.
According to the regulations, securities companies shall incorporate the stock market-making and trading business on the STAR Market into the comprehensive risk management system, and establish and improve the internal control system, quotation decision-making and authorization mechanism, and operational procedures for the stock market-making and trading business on the STAR Market. , improve risk monitoring indicators, do a good job in business risk prevention and control, and ensure that market-making transactions are carried out in a standardized and orderly manner. Securities companies should establish and improve business isolation systems to ensure that the market-making and trading business of stocks on the Sci-Tech Innovation Board is effectively isolated from brokerage, proprietary trading, asset management, and other businesses, to prevent improper flow and abuse of information, and strictly prevent conflicts of interest. Securities companies shall establish and improve the monitoring mechanism for abnormal transactions, formulate and improve measures such as controlling the proportion of transaction amount, monitoring the proportion of reverse transaction amount and order cancellation, entrusting price restrictions, and handling abnormal stock price fluctuations to prevent any impact on market stability.
The "Market Making Regulations" also clarifies that if a securities company violates relevant laws and regulations and the provisions of the CSRC in market making transactions, the CSRC and its local offices may take regulatory measures and administrative penalties in accordance with the law, and authorize the Shanghai Stock Exchange. Formulate business rules and implement self-discipline management of market-making transactions in accordance with the law.
(Article source: Securities Times)Article source: Securities Times Original title: The market making rules of the Science and Technology Innovation Board are released! The initial pilot market-making shareholding ratio does not exceed 5%, and these securities firms can be the first to enter the market