The Shanghai Stock Exchange (SSE) has provided more substance to the pilot programme for stock options, with documents that it intends will standardise market-making business regulations.
Last week the exchange published its business guidelines for market makers in th stock option pilot programme, which were composed in accordance with the “administrative measures on the pilot programme of stock option trading” together with the ‘guidelines for securities and futures agencies to participate in the pilot programme of stock option trading’ of China’s regulator, the China Securities Regulatory Commission, plus earlier relevant SSE rules that were formulated.
Simultaneously, the exchange and the China Securities Depository & Clearing Corp has produced a sample brokerage agreement for SSE stock options as well as articles of risk disclosure statement.