The "quantitative giant" was heavily fined for smashing the plate against the wind, and the regulator hit hard, how many accidents is this time?
Good fellows, how dare they!
On the first day of the opening of the market in the Year of the Dragon, Ningbo Lingjun Investment Management Partnership (Limited Partnership) (hereinafter referred to as Ningbo Lingjun), one of the well-known quantitative private equity giants in China, sold a large number of Shanghai Stock Exchange **11 through multiple ** accounts within one minute of opening9.5 billion yuan, **137.2 billion yuan, which led to a short-term rapid decline in the Shanghai Composite Index and the Shenzhen Component Index, affecting the normal trading order.
The Shanghai and Shenzhen stock exchanges struck hard at this, suspending trading on Ningbo Lingjun and initiating a public censure process, an incident that has aroused widespread concern in the market.
As one of the top quantitative private equity companies in China, Ningbo Lingjun manages more than 60 billion yuan of assets, and its trading behavior has an impact on the market.
According to the notice of the exchange, Ningbo Lingjun sold a total of 25 in Shanghai and Shenzhen within one minute of opening6.7 billion yuan, accounting for 0About 5%.
This kind of large-scale sell-off in a short period of time will undoubtedly put tremendous pressure on the market, trigger panic among other investors, lead to rapid stock indexes, and even trigger circuit breakers.
In fact, on February 19, the Shanghai Composite Index and the Shenzhen Component Index each fell by 04% and 103%, the biggest drop in nearly two years.
Although the stock index has since rebounded, the overall performance is still sluggish, and the Shanghai Composite Index** fell slightly by 001%, the Shenzhen Component Index** rose slightly by 006%。
In fact, the impact of such events on the market is not only reflected in short-term fluctuations, but more importantly, the destruction of market confidence and order.
As an emerging investment method, quantitative investment has not been fully recognized and regulated, and its trading rules and risk control mechanisms are not transparent, and they are easy to be used or abused, resulting in unfairness and instability in the market.
The Ningbo Lingjun smashing incident exposed the potential risks of quantitative investment, aroused the market's doubts and vigilance against quantitative investment, and also had a negative impact on the reputation and performance of other quantitative investment institutions.
Such events will also affect market expectations and sentiment, hit investor confidence, increase market uncertainty, and be detrimental to the medium and long-term development of the market.
This sudden incident led to a rapid decline in the Shanghai Composite Index and the Shenzhen Component Index, so what level of trading accident is this?
Trading accidents refer to events that cause abnormal or wrong transactions due to trading systems, trading procedures, trading personnel, etc., causing a certain degree of loss or impact on the market.
The level of trading accidents is generally divided according to the scope of impact, the degree of impact, the time of impact, the influencing factors and other factors, and is usually divided into four levels: slight, general, serious and particularly serious.
According to the relevant regulations of the Shanghai and Shenzhen Stock Exchanges, the Ningbo Lingjun smashing incident can be classified as a general-level trading accident.
Because the impact of the event on the market is more obvious, the stock index fell rapidly in a short period of time, affecting the normal trading order, the scope of influence involves multiple trading participants, the impact time does not exceed 30 minutes, the influencing factors are the medium-sized failure of the trading program, the accident was dealt with in a timely manner, and no serious losses were caused.
Although the event did not trigger the circuit breaker mechanism and did not cause the failure of the trading system, its impact and disruption to the market cannot be ignored and needs to be paid close attention to exchanges and investors.
The Shanghai Stock Exchange and the Shenzhen Stock Exchange, as the main operators and self-regulatory regulators of China's ** market, have clear regulations and procedures for the prevention, detection, disposal and assessment of trading accidents.
According to the Implementation Measures for Disciplinary and Regulatory Measures of the Shanghai ** Exchange (Revised in 2022) and the Implementation Measures for the Disciplinary and Regulatory Measures of the Shenzhen ** Exchange (Revised in 2022), the level of trading accidents is assessed by the exchange mainly based on the following four standards:
Scope of impact: refers to the number and proportion of trading participants involved in a trading incident, as well as the degree of impact on other market participants.
Degree of impact: refers to the degree of impact of trading accidents on the market**, trading volume, trading order, market confidence, etc.
Impact time: refers to the length of time from the occurrence of a trading incident to the resumption of normal trading.
Influencing factors: refers to the influencing factors such as the causes of transaction accidents, the responsible parties, and the handling methods.
According to these standards, the exchange divides trading accidents into four levels: slight, general, severe, and particularly severe, and takes corresponding regulatory measures according to different levels.
In addition, the exchange will also report to the China Securities Regulatory Commission (CSRC) according to the circumstances of the trading accident, and the CSRC will conduct further investigation, punishment or filing a case in accordance with the law.
The exchange will also summarize and analyze trading accidents, propose improvement measures, improve trading rules, strengthen risk prevention, improve transaction security, and ensure the smooth operation of the market.
Therefore, we can say that the Ningbo Lingjun smashing incident is a general trading accident, which has had a more obvious impact on the market, and the Shanghai and Shenzhen Stock Exchanges have taken regulatory measures such as suspending trading and public reprimand, and reporting to the China Securities Regulatory Commission to maintain market order and protect the rights and interests of investors.
This incident also sounded the alarm bell for the market, reminding investors to trade in accordance with laws and regulations, be alert to the potential risks of quantitative investment, and jointly maintain the healthy development of the market.
And for this quantitative giant, it is to kick the foot to the iron plate.
Quantitative giant Ningbo Lingjun was heavily fined for smashing the market against the wind