General Office of the China Banking Regulatory Commission, Circular on Issues Relevant to the Engagement in Domestic Gold Futures Trading by Commercial Banks

中国银监会办公厅关于商业银行从事境内黄金期货交易有关问题的通知

June 02, 2008 | BY

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Commercial banks allowed to engage in gold futures trading.

Clp Reference: 3700/08.03.07 Promulgated: 2008-03-07

Issued: March 7 2008

Main Contents: The Circular specifies the conditions for commercial banks to engage in gold futures trading, such as:

(1) having a capital adequacy ratio of at least 8%;

(2) having the qualifications to trade in derivatives;

(3) having the qualifications for the spot trading of gold; and

(4) having sound market risk management capability satisfying relevant requirements of the China Banking Regulatory Commission, Circular on Further Strengthening the Management of Market Risk by Commercial Banks;

Related Legislation: PRC Banking Regulation Law, Dec 27 2004 No.1 p.45; PRC Commercial Banking Law (Revised), Dec 27 2003, CLP 2004 No.1 p.4 & May 10 1995, CLP 1995 No.5 p.32; Regulations for the Administration of Futures Trading (Revised); Tentative Measures for the Administration of Trading of Derivatives by Financial Institutions, Feb 4 2004, CLP 2004 No.2 p.37, Guidelines for the Management of Market Risk by Commercial Banks; and Circular on Further Strengthening Market Risk Management of Commercial Banks, Dec 16 2006, CLP 2007 No.1 p.7

clp reference:3700/08.03.07prc reference:银监办发 [2008] 35号promulgated:2008-03-07

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