CSRC proprietary trading crackdown
25 November 2005
Regulators have cracked down on China's 120-plus securities houses for trading on their own behalf, Reuters reported. The China Securities and Regulatory Commission has decreed that brokerages must immediately separate all accounts held for the purposes of trading on their own behalf from those of their clients. The proprietary trading practice accounts for a fifth of the brokerage business and is the biggest source of losses. Brokers regularly create false or irregular accounts to mask the extent of their proprietary trades.
Bookmark and Share:
