You are here

China regulator orders brokerages to halt OTC swap lending: sources

Thursday, November 26, 2015 - 16:48

26111536091974 - 18_09_2015 - CHINA-CRACKDOWN_SHARESALE.jpg
The China Securities Regulatory Commission (CSRC) has issued window guidance to domestic brokerages requiring them to cease financing clients' stocks purchases using swaps and other over-the-counter derivatives, two sources with direct knowledge told Reuters.

[SHANGHAI] The China Securities Regulatory Commission (CSRC) has issued window guidance to domestic brokerages requiring them to cease financing clients' stocks purchases using swaps and other over-the-counter derivatives, two sources with direct knowledge told Reuters.

The CSRC did not respond to calls requesting comment.

The move comes after CITIC Securities was discovered to have inflated its swap trading by US$166 billion, which it blamed on an IT upgrade.

REUTERS

sentifi.com

Market voices on:

Nespresso
Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at btsub.sg/btdeal

Powered by GET.comGetCom