China Securities Industry Association, AMAC Issue Trial Rules for Securities Firms' Trading Information System Access

China's Securities Association and the Asset Management Association of China have jointly issued trial rules on the access management of securities firms' trading information systems, effective immediately, according to Jiemian News. The rules were drafted to strengthen access management, maintain market order and fairness, and were approved by the two associations' respective boards before being filed with China's securities regulator. The five-chapter, 33-article rules set out general principles, qualification requirements for securities firms and eligible clients, and full-process management standards covering due diligence, testing, pre-review, agreements, trade monitoring, abnormal-event handling, ongoing tracking, emergency response and exit mechanisms. They also require look-through supervision of clients' identities, trading accounts, funding sources and trading behavior, and specify requirements for technical service providers that offer external system access software. The rules also define filing procedures and deadlines for securities firms, quarterly and annual reporting requirements, and self-regulatory oversight by the two associations over securities firms and private fund managers. They further specify circumstances under which securities firms may terminate access and how to handle follow-up matters. At the same time, the China Securities Association's 2015 rule on external access information system assessment and certification for securities firms has been abolished.