2024-02-22 02:20:57
China Securities Regulatory Commission: Regulatory measures to promote the standardized and healthy development of quantitative trading will mature and be launched one by one
Quantitative trading is about to usher in more systematic and targeted regulatory measures. After the Shanghai and Shenzhen Stock Exchanges issued a document on the 20th to establish and improve quantitative trading supervision arrangements, relevant personnel from the Market Supervision Department of the China Securities Regulatory Commission further stated that the series of quantitative trading supervision measures to be introduced in the next stage will mature one and launch another, and fully strengthen follow-up. Various investors in the market communicate and communicate, grasp the pace and intensity of work, promote the standardized and healthy development of quantitative trading, and maintain the stable operation of the market.
Industry insiders believe that the quantitative trading supervision measures introduced by the regulatory authorities directly address the pain points of the market and highlight the investor-oriented regulatory concept. They are of positive significance in protecting the legitimate rights and interests of investors, especially small and medium-sized investors, and maintaining market fairness.
Grasp the rhythm and intensity
In recent years, with the widespread use of new information technology, quantitative trading has become an important trading method. “The China Securities Regulatory Commission has always attached great importance to the development and supervision of quantitative trading, including bringing quantitative trading into the scope of securities laws, establishing a data collection mechanism for leading quantitative institutions, strengthening quantitative trading monitoring and analysis, establishing a programmed transaction reporting system, and strengthening private equity financing. Securities supervision, etc.,” said the person above.
On September 1, 2023, the Shanghai and Shenzhen Stock Exchanges issued a notice on matters related to stock programmatic trading reporting and a notice on matters related to strengthening programmatic trading management to further improve the programmatic trading reporting and management system. The two notices will be implemented simultaneously from October 9, 2023.
“The reporting system has been implemented smoothly, and the quality of reports from all parties generally meets the requirements, providing a basis for further strengthening and improving quantitative trading supervision.” said the above-mentioned person.
“The series of quantitative trading supervision measures introduced in the next stage will be matured one by one and launched one by one. We will fully strengthen communication with various investors in the market, grasp the pace and intensity of work, promote the standardized and healthy development of quantitative trading, and maintain the stable operation of the market. .” The above-mentioned person introduced.
Focus on investors
The Shanghai and Shenzhen Stock Exchanges proposed that the quantitative trading supervision measures include strictly implementing the reporting system and clarifying the access arrangements of “reporting first, trading later”; strengthening the authorization management of quantitative trading market, improving the differentiated charging mechanism; improving the abnormal trading monitoring and control standards, strengthening Supervision of abnormal transactions and abnormal order withdrawals; strengthening monitoring and regulation of leveraged quantitative products, strengthening joint supervision of futures and spot, etc.
Industry insiders believe that regulatory measures related to quantitative trading are highly targeted and emphasize investor orientation. For example, the requirement to “report first, then trade” will help to further accurately identify quantitative transactions; in view of the information advantages of quantitative transactions, clearly strengthen market authorization management; in view of recent quantitative transactions in small market capitalization stocks, clearly strengthen leveraged products Monitor and regulate to prevent stampedes in a short period of time.
On the 20th, the Shanghai and Shenzhen Stock Exchanges issued fines for abnormal transactions of Ningbo Lingjun Investment Management Partnership (Limited Partnership), implemented measures to suspend or restrict trading and initiated public condemnation procedures.
“The self-discipline management measures adopted for Ningbo Lingjun this time are a manifestation of the regulatory authorities’ strengthening supervision of abnormal trading behaviors.” Tian Lihui, director of the Institute of Financial Development of Nankai University, said that relevant measures are also a reflection of protecting the market.
The Shanghai and Shenzhen Stock Exchanges stated that in the next step, they will adhere to the investor-oriented approach, take the maintenance of fairness as the starting point and end point of their work, learn from international regulatory practices, seek advantages and avoid disadvantages, and establish and improve quantitative trading regulatory arrangements.
It’s not like “killing someone with a stick”
There is currently a lot of market discussion about quantitative regulation. Many opinions believe that quantitative trading started late, but developed rapidly and had a greater impact on the market. “The impact of quantitative trading on the market must be viewed dialectically.” Relevant people from the Shanghai and Shenzhen exchanges said that on the one hand, quantitative trading is usually operated with full or high positions, which provides more liquidity to the market and helps promote price discovery; on the other hand, quantitative trading is usually operated with full or high positions. On the one hand, quantitative trading, especially high-frequency trading, has the characteristics of fast transaction speed, strong processing power, and the use of artificial intelligence. It has strong technical advantages, information advantages, and trading advantages compared with ordinary investors, and some micro-cap trading behaviors have strategies. Convergence, trading convergence, and even trading time convergence further amplify the fluctuations of individual stocks, thereby causing market resonance.
A relevant person from the Market Supervision Department of the China Securities Regulatory Commission told reporters that the Shanghai and Shenzhen Stock Exchanges took comprehensive measures to supervise quantitative trading, not to kill quantitative trading with one stick, nor to ban quantitative trading.
“Considering the current market situation of 200 million investors, and the risk of increasing market volatility in quantitative high-frequency trading under a specific market environment, it is necessary to take advantage of the situation to promote its standardized development and make it more investor-oriented.” said the person above. .
Yang Delong, chief economist of Qianhai Kaiyuan Fund, said that a series of regulatory measures directly address the pain points of quantitative trading and will play a positive role in promoting the stable operation of the stock market.
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