Bank derivatives regulation rules change in China

China’s banking regulator issued new rules on derivatives in January this year that will shake up the way market participants use derivatives for both hedging and other purposes, as well as potentially limit the size of banks’ derivatives operations. By

On January 5, 2011, the China Banking Regulatory Commission (CBRC) introduced new derivatives regulations under the revised Provisional administrative rules governing derivatives activities of banking financial institutions. The new rules made a number of significant changes to the Interim rules on derivative business of financial institutions, which were originally issued by the CBRC in 2004 and subsequently amended in 2006.

The new rules govern derivatives trading by commercial banks