The Shanghai Stock Exchange (SSE) has recently completed the work of thorough rationalization and assessment of the business rules for 2014, and issued the announcement today to abolish the 8th batch of business rules, including 29 rules in total. After the rationalization, there are now a total of 196 business rules in force on the SSE, forming a complete rule system covering the securities and derivatives businesses and oriented toward all kinds of market players.
Establishing the long-term mechanism of rationalizing and as sessing rules and regularly carrying out rationalization and assessment of the rules is one of the SSE’s important measures to promote rule by law and regulatory transformation. To facilitate accurate understanding and application for market participants, the SSE has thoroughly rationalized year by year the existing business rules in force that are universally binding and persistently effective, and assessed, supervised, and inspected the formulation and implementation of the business rules, so as to improve the effect of implementing the business rules. So far, the regular rationalization has been carried out for 8 times, with a total of 279 business rules abolished.
On the basis of continuously rationalizing and publishing the business rules system featuring completeness and clear levels, in order to implement the concept of open regulation, the SSE has also continued to regularly rationalize other normative documents in addition to the business rules. A total of 163 normative documents for business guidance and procedures have been sorted out for the year of 2014, and have been published in the section of “Business Guidance and Procedures” on the SSE website.
Since 2014, the SSE has been in the face of two new situations in the construction of the business rules. First, significant innovative projects of Shanghai-Hong Kong Stock Connect and stock options have been achieved successively, and the structure of the business rules system is developing toward the breakthroughs in the direction of openness and integration; second, with the implementation of the principle of rule by law and the all-around advancement of the regulatory transformation, the construction of the self-regulatory rules is being pushed forward in accordance with higher and stricter targets. In such a context, besides making effective efforts in the regular work in making, revising, and abolishing business rules, the SSE has focused on the following two areas of construction and disclosure of the rules:
First, the SSE has set up the system of “compatible and inclusive” rules, achieved the adaptation of the rules between the domestic market and the overseas connected markets, the securities spot market and the stock option market, and formed the open rule system basically in line with the development and innovation of the SSE; second, the SSE has implemented the construction of the “market-friendly” system, and earnestly solicited opinions from the market and fully absorbed the wisdom of the industries when making and revising the business rules with significant impacts on the market development, innovation and regulation. Besides, it has strengthened the disclosure of the regulatory standards as well as the regulatory experience and practices, and refined the relatively solid experience and practices in actual regulation into business rules and disclosed them to the market.
The SSE said that building and improving the business rules system and effectively advancing management of the SSE and the market by law is a long-term and fundamental task of importance. Fully relying on the good effect of the long-term mechanism formed over years in rationalizing and assessing the business rules, the SSE will, on the basis of the fundamental principles of standardizing market operation, promoting market development, advancing market innovation and protecting investors’ rights and interests, timely formulate, revise and rationalize the business rules, and make audacious exploration and innovation to continuously build the business rules system adaptable to the market’s growth and innovation.