On August 21, 2013, the CSRC promulgated the Guidelines for Trading by Securities Companies in Stock Index Futures and Treasury Bond Futures. The Guidelines came into effect as of the promulgation date.

 According to the Guidelines, to trade stock index futures or treasury bond futures with its own funds, a securities company shall meet the following requirements: (1) the company shall apply for a trading code in compliance with the relevant provisions of the China Financial Futures Exchange (CFFEX); (2) the securities company shall, in compliance with applicable regulations such as the Administrative Measures for Risk Control Indicators of Securities Companies, deduct its net capital based on 100% of the trading deposit that has been occupied by the stock index futures or treasury bond futures; (3) the securities company shall respectively calculate the risk capital reserve at 5% of the investment size of the stock index futures or treasury bond futures for which risk hedge has been made, and at 20% of the investment size of the stock index futures or treasury bond futures for which risk hedge has not been made; and (4) the total amount of proprietary equity securities and securities derivatives (including stock index futures, treasury bond futures, etc) shall not exceed 100% of its net capital, in which the stock index futures is calculated at 15% of the total value of the stock index futures contract and the treasury bond futures is calculated at 5% of the total value of the treasury bond futures contract.

(From: China Securities Regulatory Commission)