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Shenzhen exchange demands brokers file monthly trading reports
(Shanghai Daily)
Updated: 2007-04-19 13:43 The Shenzhen Stock Exchange yesterday issued a notice requiring member brokers to file monthly trading reports, with the first by May 10, in the latest regulatory move to curb potential insider trading.
The reports, the first of its kind, should include any abnormal share trading by clients or any technical problems which occurred in April, according to the internal notice obtained by Shanghai Daily. Brokerages must complete the reports with a format set by the bourse and reveal plans to upgrade their trading systems. the notice said. Reports on trading for the whole of 2006 should also be submitted by then, it said. Chinese mainland equities more than doubled their value in 2006 as investors channeled bank savings to share trading. The frenzy for share trading continued this year with daily turnover more than tripling last year's average. The Shenzhen exchange in March ordered member brokers to appoint chief technical officers and push forward plans to deal with possible "system disasters" amid rising demand by investors to trade. The bourse, the smaller of the two mainland exchanges, also ordered brokers to conduct individual system checks and submit results to it monthly. Securities firms have to inform the exchange within 15 minutes if trading can't proceed and file detailed reports on technical problems within 15 days. The Shanghai Stock Exchange also has issued internal notices demanding brokers improve trading systems after a series of technical glitches spurred investor complaints. The Shanghai bourse said on Tuesday it investigated 97 irregular share transactions in the first quarter of the year, equivalent to 35 percent of last year's total, as volatility in share prices increased. The China Securities Regulatory Commission this month started probes into Zhejiang Hangxiao Steel Structure Co and S&P Pharmaceutical Industry Co over possible insider trading. (For more biz stories, please visit Industries)
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