21 May 2021
After nearly 30 years of hiatus, Mainland China’s futures market will finally secure much-anticipated legislation to provide for legal protection for a stable and healthy development of the market. On 29 April 2021, a draft of the Futures Law was introduced for first reading at the Standing Committee of the National People’s Congress, Mainland China’s top legislature. The Futures Law represents an ambitious attempt at providing a comprehensive legal and regulatory framework for the operation of the futures markets in Mainland China, and will encompass futures trading, clearing and settlement as well as the effective supervision of exchange participants, clearing houses, trading and clearing members and investors.
Significantly, the Futures Law also extends to the operation of non-exchange traded derivatives, notably over-the-counter derivatives, and provides protection for the enforceability of close-out netting and collateral arrangements.
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For further information, please contact:
Victor Wan, Partner, Linklaters
victor.wan@linklaters.com
