China Securities Regulatory Commission issues trial rules tightening regulation of algorithmic and high-frequency trading in futures

The China Securities Regulatory Commission issued the Measures for the Administration of Programmatic Trading in the Futures Market (Trial), establishing end-to-end regulatory requirements for algorithmic trading in the futures market and setting specific obligations for traders, futures companies and futures exchanges. The measures will take effect on 9 October 2025. The measures define programmatic trading and high-frequency trading, require algorithmic trading not to impair futures exchange system security or normal trading order, and introduce a pre-trade reporting regime under which traders must report relevant information and may only begin programmatic trading after receiving confirmation. They also strengthen system access controls, including functionality and testing requirements for futures companies’ and traders’ technical systems and specified prohibited conduct, and create reporting and management requirements for co-location and trading seats, including an obligation on exchanges and futures companies to allocate relevant technical resources fairly. Ongoing monitoring and risk management requirements apply to futures companies and traders, while exchanges must monitor and control abnormal trading behaviour to safeguard system security and market order; supervision is split between CSRC and its local offices through administrative oversight and self-regulatory management by futures exchanges and the China Futures Association. CSRC noted it previously consulted publicly on the measures and incorporated key feedback, and it will guide futures exchanges and the industry association to develop supporting detailed business rules to implement the framework.