New and Amended Provisions Regarding the Use of Proprietary Assets by Futures Commission Merchants (FCMs) and the Scope of Futures Proprietary Trading
On 25 May 2016, the FSC introduced regulations allowing FCMs engaging exclusively in futures brokerage business to use their proprietary assets to engage in futures trading. It also allows securities firms concurrently engaging in futures proprietary business, and FCMs engaging exclusively in futures proprietary business, when trading foreign futures, to engage a managed futures enterprise to conduct discretionary trading on their behalf. Furthermore, FCMs are allowed to use their proprietary assets to purchase futures trust funds offered and issued by futures trust enterprises to domestic specified persons.