China Enhances Data Security Rules for Interdealer Brokers to Safeguard Financial Safety and Market Integrity
China has introduced new data security regulations for interdealer brokers in a bid to reinforce financial safety and maintain market integrity. The move comes as part of the country’s ongoing efforts to prioritize data security and ensure compliance among businesses.
In a joint statement, Chinese regulators emphasized the importance of data services offered by interdealer brokers not posing any threat to national security, financial safety, or public interest. To facilitate compliance, a list of over 70 approved financial information service providers has been issued by the regulators. Notable providers on the list include China Foreign Exchange Trade System, Shanghai Stock Exchange, Wind Information Co Ltd, Refinitiv Information Services (China) Co Ltd, and Bloomberg L.P.
Refinitiv, previously a division of Thomson Reuters but now part of the London Stock Exchange Group (LSEG), collaborates with Thomson Reuters for news distribution on Refinitiv terminals. Thomson Reuters, the owner of Reuters News, also holds a minority stake in LSEG.
The need for these regulations became evident when Chinese regulators suspended the data feed business of money brokers in March due to concerns over data security. The suspension led to a significant decline in bond trading turnover, as many traders lost immediate access to real-time data. However, after allowing the resumption of business, China managed to restore stability to the market.
In recent years, China has become increasingly focused on data security and has implemented various laws and compliance requirements for companies operating within its jurisdiction. Interdealer brokers, which act as intermediaries between dealers, are required to comply with the new rules and must not only provide price quotation data after receiving exchange authorization but also ensure the protection of client privacy.
The regulations also dictate that brokers must enhance scrutiny over traders’ qualifications and submit pertinent business data to regulators. The rules were jointly published by the National Administration of Financial Regulation and the Cyberspace Administration of China.
By placing emphasis on adherence to data security rules, China aims to safeguard its financial system and maintain market transparency. These regulations contribute to fostering trust and stability in the market, ultimately protecting the interests of investors and ensuring the overall integrity of China’s financial landscape.
In conclusion, China’s release of new data security rules for interdealer brokers demonstrates its commitment to financial safety, market integrity, and data protection. With the establishment of these regulations, China aims to strengthen compliance among businesses and promote transparency within its financial industry. By providing a list of approved financial information service providers, the regulators assist brokers in choosing reliable partners for collaboration. It is expected that these measures will enhance market trust, safeguard national security, and protect the interests of investors.
