March 02, 2007 03:18 Beijing Time
Font Size:       Email Email to Friends   Comment Comment (0)
 
China's securities watchdog has required brokers to ensure investors provide sufficient trading margins for futures contracts as part of an effort to improve risk controls after irregularities were uncovered recently.

Brokerages also have to check their clients' credit profiles and risk-management abilities, the China Securities Regulatory Commission said in a statement on its Website.

Securities houses must set aside provisions for their clients' portfolios and help cover losses if risks occur, the statement said.

Brokers can order investors to close positions if they don't increase margins as required, it said.

The stock regulator noted that several brokerages lacked proper risk controls, which led to recent cases in which clients hadn't provided sufficient margins.

The watchdog didn't name any brokers and said margin shortages had been covered.

>> Full Article

Previous: HK shares extend slide to 7-wk low, but Esprit up
  • Related News
  • Most Popular Stories