Chinese Brokers Tighten Retail Access to Programmatic Trading Systems

Several Chinese brokerages have tightened access for retail clients to programmatic trading systems to further implement the Securities Association of China and the Asset Management Association of China’s August 28 interim rules on access management for securities company trading information systems, according to Jiemian News. The rules prohibit individual investors from conducting programmatic trading through “quasi-external connection” methods, including file-interchange services. Jiemian News also reported that multiple brokerages are clearing existing non-compliant access arrangements used by retail investors to connect to brokerage systems through reverse-solicitation strategies. Regulators and the brokerage industry have launched a broad remediation campaign covering external system connections, with special task forces handling inspections, access shutdowns and the removal of legacy violations. The industry expects the first phase of the cleanup to be completed in November this year.