First Read: China Brokers Sector "CSRC derivatives measures: structuring..."

Research evidence excerpt

First Read: China Brokers Sector "CSRC derivatives measures: structuring..."

Global Research

18 May 2026ab

First Read

EquitiesChina Brokers Sector

CSRC derivatives measures: structuring growth, China

favouring leaders Financial Services

Dennis Bai

Analyst

dennis.bai@ubs.com

CSRC rolled out the first departmental rules governing derivatives +852-3712 2473

CSRC issued 'Measures for Supervision and Administration of Derivatives Trading (Trial)' Wen Chen, CPA

('the Measures'), the first comprehensive departmental rules specifically governing Associate

derivatives. The Measures signals a shift toward a more standardized and orderly S1460524120002

market. While near-term growth may face some pressure, the Measures lay the wen.chen@ubs.com

groundwork for more disciplined and regulated leverage over time. For intermediaries +86-21-3866 8259

(e.g., securities and futures firms), tighter requirements on capital, classification, Frank Zheng, CFA

segregation, and reporting would raise operating costs, and therefore may potentially Analyst

accelerate industry consolidation and favouring leading players. The Measures will take S1460524050001

effect on 16 November, implying a six-month grace period. From then, non-compliant frank.zheng@ubs.com

firms shall not launch new business, and existing positions must be unwound upon +86-21-3866 8873

maturity. The Measures apply only to CSRC-regulated trading venues and

intermediaries, excluding interbank and bank/insurance OTC markets.

Building toward long-term upside; leading players well positioned

We believe the roll-out of the Measures signals China's derivatives market shifting

toward more standardized and orderly development. Near-term growth may soften as

non-compliant products shall be phased out and smaller players with weaker capital