China’s regulator publishes new derivatives guidelines

The new guidelines, open for consultation until October 25, aim to clarify some of the legal grey areas in the Chinese derivatives market by specifying which institutions can trade derivatives, and outlining licensing procedures and risk management requirements for derivatives traders.

Under the new draft guidelines -- the first update since the initial consultative document in July 2002 -- financial institutions will be able to trade foreign currency-denominated interest rate, credit and cu