Futures Investor Guarantee Fund to be established soon

Futures Investor Guarantee Fund to be established soon

The China Securities Regulatory Commission (CSRC) and the Ministry of Finance jointly issued the Interim Measures on the Management of Futures Investor Guarantee Fund (the Interim Measures) lately.

The Interim Measures prescribe that in case of margin shortfalls incurred by severe breaches of laws and regulations or risk control failures by futures companies, the CSRC may utilize the aforesaid guarantee fund to compensate the investor margin losses that fail to be settled. The Measures will come into force as of August 1, 2007.