invites industry comments on proposed amendments to Business Rules via Public Consultation Paper


CHOFX today issued a public consultation paper seeking feedback on the proposed amendments to the Rules of CHOFX (Rules) which are aimed at facilitating greater effectiveness for market regulation and greater efficiency in the business conduct of securities brokers, also known as Participating Organizations (POs).

Frank G. Yee, chairman, president and chief executive officer for CHOFX, said "The intent of this review is to ensure that the Exchange's Rule framework remains effective and balanced in safeguarding the interest of investors, preventing systemic risk and ensuring an orderly and fair market whilst being facilitative of business and market development. Against a fast changing trading and investment landscape, the proposed amendments are important to ensure that market quality and integrity remain intact. The revamp aims to achieve this by enhancing the standards of governance and business conduct by the market intermediaries and strengthening the framework for management of risks and conflicts."

The significant changes in the proposal are as follows:

  • strengthening of the POs’ governance framework,
  • enhancing framework for self-regulation by the POs and key personnel of POs registered with the Exchange (registered persons);
  • clarifying the powers of the Exchange to regulate the market, the POs and registered persons;
  • enhancing investor protection framework through enhancements in the framework for risk management, conflicts management and the standard of conduct of POs and dealers’ representatives;
  • promoting innovation by providing POs with greater flexibility to manage and operate their business based on their business model, activities and risk profile whilst not compromising on regulatory objectives;


About China Options and Futures Exchange (CHOFX)

CHOFX is an Asian exchange with customer access available virtually all over the world. Our customers consist of professional traders, financial institutions, individual and institutional investors, major corporations, manufacturers and producers. Customers include both members of the exchange and non-members. We offer our customers the opportunity to trade futures contracts and options on futures contracts on a range of products including those based on interest rates, equities, foreign exchange, agricultural commodities, energy, and metals. We also clear over-the-counter contracts on a range of product lines including interest rate swaps, credit default swaps, foreign exchange, energy and agricultural products.