The China Securities Regulatory Commission (CSRC) recently released draft rules that will classify futures firms into five classes and 11 sub-categories, based on their risk management, market influence and compliance status.

According to the draft regulations, a standard benchmark firm will be awarded a score of 100, and trhe regulatory body will adjust the score of a future firms according to the standards mentioned above. The final ranking, in terms of which class and sub-category the firm falls into, will be decided by their scores.

Meanwhile, the CSRC also announced its intention to divide the futures supervision department into two sections. The first section will be responsible for supervising the futures exchange and the market while the second office will be in charge of regulating futures institutions.

Links and Sources
CSRC: Draft Regulations and Call for Public Comment (Chinese)