**Times reporter Cheng Dan.
Quantitative trading will usher in systematic regulatory measures. The relevant person of the First Department of Market Supervision of the China Securities Regulatory Commission said that the China Securities Regulatory Commission has been concerned about the development and supervision of quantitative trading, and has successively promoted a lot of work in recent years, including including the inclusion of quantitative trading in the scope of the first legal system, the establishment of a data collection mechanism for leading quantitative institutions, the strengthening of quantitative transaction monitoring and analysis, the establishment of a programmatic transaction reporting system, and the strengthening of private placement and securities lending supervision. The "combination punch" of quantitative trading supervision launched this time is strong, strengthening supervision from multiple dimensions, and basically covering the main links of quantitative trading business operations.
The person said that the next stage of the introduction of a series of quantitative trading supervision measures, will mature one, launch one, and fully strengthen communication with all kinds of investors in the market, grasp the rhythm and intensity of work, promote the healthy development of quantitative trading standards, and maintain the stable operation of the market.
Establish and improve regulatory arrangements for quantitative trading
On February 20, the Shanghai and Shenzhen Stock Exchanges suspended Ningbo Lingjun and launched a public censure procedure, releasing a strong regulatory signal for the illegal behaviors of quantitative institutions that affect the smooth operation of the market and damage the legitimate rights and interests of investors.
On the same day, the exchange issued a document stating that the quantitative reporting system has been implemented smoothly, and the next step will be to adhere to the investor-oriented, take the maintenance of fairness as the starting point and end point of the work, learn from international regulatory practices, pursue advantages and avoid disadvantages, and establish and improve quantitative trading regulatory arrangements. Specifically, it includes the strict implementation of the reporting system and the clarification of the access arrangement of "report first, then trade"; Strengthen the authorization management of quantitative trading** and improve the differentiated charging mechanism; Improve the monitoring and monitoring standards for abnormal transactions, and strengthen the supervision of abnormal transactions and abnormal order cancellation; Strengthen the monitoring and regulation of leveraged quantitative products, and strengthen the supervision of futures and spot linkage. At the same time, we will further consolidate the customer management responsibilities of the company, improve the self-discipline management and cooperation mechanism with the first industry association and the first industry association, and strengthen the transaction supervision of quantitative private equity and other institutions.
A relevant person from the First Department of Market Supervision of the China Securities Regulatory Commission said that in recent years, the China Securities Regulatory Commission has been attaching great importance to relevant regulatory work, promoting the inclusion of programmatic transactions in the scope of the "** Law", establishing a data collection mechanism for leading quantitative institutions, and strengthening the monitoring and analysis of quantitative transactions. Since September 2023, the China Securities Regulatory Commission (CSRC) has gradually introduced a programmatic transaction reporting system to strengthen the supervision of private placements. After three months of transition, the reporting system has been implemented smoothly, and the quality of the reports of all parties generally meets the requirements, which provides a basis for further strengthening and improving the supervision of quantitative trading.
Through a three-month transition period, the reporting system has achieved a smooth implementation and has also achieved 'reporting as much as possible'. The relevant person in charge of the exchange said that in the middle of the reporting process, brokerages and investors are actively fulfilling their reporting obligations, and the quality of the submission is generally high.
It is reported that in the more than three months since the implementation of the reporting system, there has been no abnormal scale of quantitative trading or the operation of quantitative trading institutions. The proportion of quantitative trading has not fluctuated greatly, it is relatively stable, and the market impact is also relatively stable.
Steadily and prudently promote follow-up reform measures
The Shanghai and Shenzhen stock exchanges have issued "fines" for the abnormal trading of Ningbo Lingjun Investment Management Partnership (Limited Partnership) (hereinafter referred to as Ningbo Lingjun), restricted Ningbo Lingjun's trading and launched a public censure procedure, which has aroused the attention of the market.
In recent years, with the widespread use of new information technology, quantitative trading has become an important trading method. Quantitative trading helps to provide liquidity to the market and facilitates discovery. However, quantitative trading, especially high-frequency trading, has obvious advantages in technology, information and speed compared with small and medium-sized investors, and there are also problems such as strategy convergence and trading resonance at some points in time, which increases market volatility.
A relevant person from the First Department of Market Supervision of the China Securities Regulatory Commission said that the regulatory measures announced this time cover all aspects and reflect the characteristics of comprehensive policies. For example, in view of the speed advantage, measures are taken to effectively curb and reduce the interference to the normal trading order of the market; In view of the sharp fluctuations in small and medium-sized market capitalization**, strengthen the monitoring and regulation of leveraged products to reduce stampede and resonance.
Ningbo Lingjun was publicly condemned, reflecting the regulator's clear attitude of strengthening the supervision of abnormal transactions. The person in charge of a private equity institution said that the exchange has made it clear that it is necessary to strengthen the supervision of abnormal transactions and abnormal order cancellation, strengthen the authorization management of quantitative trading, improve the differentiated fee mechanism, and strengthen the monitoring and regulation of leveraged quantitative products.
The comprehensive policy of the Shanghai and Shenzhen Stock Exchanges to supervise quantitative trading is not to kill quantitative trading with a stick, nor to prohibit quantitative trading, but to find that quantitative trading is more frequent in the daily supervision process, and the frequency of reporting and canceling orders is too high, and there are excessive use of information advantages, aggravating information asymmetry, etc., which brings more and more unfairness to the market. The relevant person of the First Department of Market Supervision of the China Securities Regulatory Commission emphasized.
It is understood that in the process of promoting the above-mentioned "package" measures, the Shanghai and Shenzhen stock exchanges will also operate prudently and launch one after another to reserve sufficient time for the market to adjust. After the reporting system, more regulatory rules for quantitative trading will be introduced, and the market will be fully communicated before the introduction of the system.