Solicitation of opinions on the draft futures law ends today! A total of 426 opinions received from 119 people
On April 29, the "Futures Law of the People’s Republic of China (Draft)" (draft for short) with more than 25,000 words was open to the society for comments. After eight years of development, the draft law is finalized. The draft inherits the past and the future, not only summarizes and inherits the theory and practice of the development of the futures market for more than 30 years in the past, but also focuses on the future, pointing out the direction and escorting the development of the futures market.
As of the news release yesterday, the draft has received 426 comments from 119 people. Today, the work of soliciting opinions on the draft will officially end, entering a new stage of revision and improvement.
It is understood that during the period when the draft was publicly solicited for comments, the society paid great attention, and the academic, legal, and business experts expressed their opinions and put forward many constructive opinions and suggestions on the draft.
The draft has won lots of praise from different industries. According to Yuyue Hu, director of the Securities and Futures Research Institute of Beijing Technology and Business University, the draft embodies the three principles of the futures law formulation: it should be early but not late, rough and not detailed, more conventions and less features. The draft also has four major features: futures-based, taking into account other derivatives; in-market-based, taking into account OTC-market; standardized products, taking into account non-standardized products; domestic-based, taking into account overseas.
Yuyue Hu was the consultant of the drafting team for this round of drafting and participated in the preliminary drafting work. He believes that the draft has elevated the development of the futures market to a national strategy, which has left a deep impression on people. He suggested that the revised draft should further improve the details.
Wei Zhong, an associate researcher at the Research Center for Civil and Commercial Law of Renmin University of China, told the Futures Daily reporter that compared with the current "Administrative Regulations on Futures Trading," the draft has more significances. For example, the draft includes over-the-counter derivatives trading into the scope of adjustments, and makes the futures law as a basic law in the field of derivatives. Another example is the current approval system for the listing of new futures products, and the draft clarifies the registration system, the draft exceeds expectations.
"The expansion of the scope of adjustment will inevitably lead to flaws in legislative technology, logic, and the definition of proper terms. It is recommended that the legislature further sort out the expressions of relevant provisions and straighten out the logical connections of various new rules, which will be included in the revised draft. And accurately define the proper words in the draft." Wei Zhong said.
Regarding the most controversial adjustment scope of the futures law, Hongzheng Yu, a partner and lawyer of JunZeJun Law Firm, said that from the strategic perspective of national economic security, the draft includes various derivatives under the supervision of the futures law, but flexible separate supervision. Based on the history and reality of separate operation and separate supervision in China, the draft adopts the parallel, crossover and coordination of functional supervision, institutional supervision and product supervision, the draft is the most grounded legislative plan.
Chunyan Liu, associate professor of Tongji University Law School, believes that Article 7 in Chapter 1 of the draft stipulates that the futures supervision and management agency of the State Council shall implement centralized and unified supervision and management of the national futures market in accordance with the law. Interest rate and exchange rate futures shall be separately prescribed by the State Council in accordance with law. There are many such mandated rules in the draft, which will affect the stability and seriousness of the law. He suggested that financial futures such as interest rates and exchange rates should be included in the centralized and unified supervision of futures regulatory agencies. "It is hoped that in the process of improving the draft, such delegating rules will be minimized and uncertainty will be turned into certainty." He said.
One Futures company, said that the draft fully takes into account the development status and needs of China’s futures and financial derivatives market, establishes a product listing registration system, stipulates trading rules for other derivatives, clarifies the futures trading system, and standardizes procedural transactions. Strengthen account management, clarify the actual control relationship reporting management mechanism, clarify the default handling procedures, establish the principle of bankruptcy protection of margin and related properties; stipulate the cross-border transaction code of conduct and cross-border supervision and management and establish a futures market operation in line with international practices The system fully embodies the concepts of marketization, rule of law, and internationalization.
It’s expected that the draft futures law will be further improved to better reflect the achievements of the 30-year innovation and development of the futures market, leave room for innovation and transformation of futures companies, and fully reflect investors and intermediary financial institutions. And fully reflect the principle that "both buyers and sellers are responsible for themselves."
Another Futures company, believes that the draft is not a simple upgrade of the current "Administrative Regulations on Futures Trading", but a redefinition of the futures market from the perspective of the development of the derivatives market and many innovative contents have emerged. Regarding futures companies, although the “no self-employment” regulations have been deleted, the scope of business of futures companies is still limited to the basic businesses of brokerage, investment consulting, risk management companies, and asset management. "I hope that the revised draft can define futures companies in a forward-looking perspective from the perspective of the attributes of financial institutions and the development of the derivatives market, and give futures companies more room for development."
According to a reporter from the Futures Daily, overseas institutions are also very concerned about the development of China's futures law. At present, foreign institutions have commissioned lawyers to translate the draft of the futures law into English and conduct research in advance.