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China regulator bans financing via OTC derivatives: sources
[BEIJING] The China Securities Regulatory Commission has banned the use of over-the-counter (OTC) derivatives as a financing channel, in a fresh move to restrict risky shadow banking businesses, according to a CSRC notice obtained by Reuters, and confirmed by two sources.
The regulator has also urged brokerages to strengthen risk control over OTC derivatives, and barred securities firms from facilitating transactions that dodge regulatory oversight.
The sources declined to be identified because they're not authorized to speak to the media.