Regulation on Supervision and Administration of Securities Firms

3 Trade securities or maneuver securities market with insider information

1 Illegally buying securities issued by shareholder of the securities firm or other issuer with major relationship to securities firm against regulation

Article 26 If a securities firm and its domestic branch are engaged in securities business prescribed in Article 125 of the Securities Law, they should follow the Securities Law and provisions of this Regulation.

Article 45 A securities firm can be engaged in securities assets management business by accepting customer s entrustment or using customer s assets according to the Securities Law and this Regulation.

Article 20 If a securities firm has two or more kinds of securities brokerage business, securities assets management business, financing with capital and securities, securities underwriting, securities sponsors, its board should set up remuneration and nomination committee, auditing committee and risk control committee to perform rights prescribed in company regulation.

Article 8 Setting up a securities firm requires meeting the conditions prescribed in the Company Law, the Securities Law as well as this Regulation, and approval from securities regulatory agency under the State Council.

If the securities firm closes all securities business, disbands, goes bankruptcy or revokes domestic branch, it should publicize in newspaper appointed by the securities regulatory agency under the State Council and submit securities business license to the securities regulatory agency under the State Council for deregistration based on regulation.

4 Other behaviors prohibited by law, administrative regulation or the securities regulatory agency under the State Council.

5 Other behaviors prohibited by law, administrative regulation or the securities regulatory agency under the State Council.

Except for circumstances prescribed in Article 54 of this Regulation or other agreements reached by the securities firm and customers according to law, the securities firm shall not use the securities or fund in the customer guarantee accounts.

5 Other items required by the securities regulatory agency under the State Council to prescribe in company regulation.

Article 36 A securities firm should draw general risk provisions according to regulation to make up operation loss.

Article 2 Securities firms should follow the law, administrative regulation and prescription of the securities regulatory agency under the State Council, run business prudently, and perform fiduciary duties to customers.

General regulations referred to in article 52 bis 4 of the Securities Market Act

While the securities regulatory agency under the State Council approving setting up application of securities firm and its branch, it should consider the needs of development as well as fair competition of the securities market.

Jolles, IH (2003). Sarbanes Oxley The New Audit Committee and The Exercise of Due Care , Securities and Commodities Regulation, June 11.

Article 22 If a securities firm sets up an agency that performs business management rights of the securities firm, it should clearly states it name, constitution, roles, responsibilities and rule of procedure in the company regulation.

Article 34 While a securities firm is putting forward investment advice to customers, it shall not make decisive judgment on rising or dropping of securities price or market tendency.

Once the responsible person for regulatory compliance finds behavior of law and regulation violation, he should report to agency prescribed in company regulation, and also report to the securities regulatory agency under the State Council or concerning self discipline organization according to the regulation.

The decrease of transaction settlement fund balance in the securities market in July was smaller than that in June, while the net bank securities transfers stood at negative RMB 66.6 billion.

The Securities Committee, under the Council of Ministers of the Republic of Belarus and its inspectorates, monitor professional participants in the securities market, persons engaged in exchange activities and lottery organizers

Future disciplines on domestic regulation would help ensure effective market access, including in Mode 4.

According to the official microblogging news of the China Securities Regulatory Commission (CSRC), the securities market supervision department is cooperating closely with the Shenzhen Stock Exchange and the Hong Kong Stock Exchange.

Article 13 If a securities firm changes registered capital, business scope, company form or key terms in company regulation, merger, divide, set up, acquire or revoke domestic branch, relocate domestic branch, set up, acquire, hold equity of domestic securities agency, it should get approval from the securities regulatory agency under the State Council.

Article 58 A securities firm that carries out securities assets management business shall hand the customer trust assets over to the custody of the designated bank as stipulated in Item 4 of Article 57 of this Regulation or other assets custodian organs recognized by the securities regulatory agency under the State Council.

Article 1 This Regulation is formulated with the purpose of strengthening supervision and administration of securities firms, standardize their behaviors, prevent their risks, protect legal rights and interests of customers, and promote healthy development of the securities industry according to the Company Law of People s Republic of China (hereinafter referred to as the Company Law) and the Securities Law of People s Republic of China (hereinafter referred to as the Securities Law).

Particular attention should be paid to land access, investment regulation, competition laws, infrastructure, the informal market and governance.

In these senses, Swensen is completely different from day traders, who are both investing for the short term and trying to beat the most crowded market the market for exchange listed securities.

For several reasons, it should buy US treasury securities. In other words, it should go back to intervening in the foreign exchange market.

(2) Where a securities firm offers investment suggestions to its client, making certainty judgment on highs and lows of security prices or market trends

The securities firm should sign entrustment contracts with securities brokers who accept such entrustment, issue securities broker certificate, define authorized scope of securities broker and supervise working behavior of securities broker.

The absence of regulation in the market can be perverse, and suggests that domestic monopolistic behaviour in the wholesale segment by domestic companies could be replaced by foreign monopolies controlling the market.

Without securities business license, the securities firm and its domestic branch shall not run securities business.

The securities broker should have securities working qualification.

In addition to Suzhou, other second tier cities including Hefei and Nanjing will also introduce the property market regulation and control policies.

The designated banks, assets custodian organs and the securities registration and settlement organs shall refuse application or instruction to use the customer s trading settlement funds, the trusted funds and the funds and securities in the customer s guarantee accounts which exceeds the scope stipulated by Articles 53, 54 and 60 of this Regulation

Securities brokers should work within authorized scope of the securities firm and show securities broker certificates to customer.

Article 56 Where a securities firm carries out securities lending and borrowing but does not have sufficient funds or securities, it can borrow from the securities financial companies.

(5) Securities service agencies provided services for a securities firm.

And the market is prone to temporary fits of shared enthusiasm for emerging market debt, for Internet stocks, for residential mortgage backed securities, for Greek government debt. Traders need not wait to see when or whether the profits materialize.

10 Jae kyoung Kim, Korea seeks major role in Asian market integration , Korea Times (13 May 2004) and Nomura Securities Co., Ltd., press release (8 December 2004).

Article 41 A securities firm engaged in securities business for its own account is limited to trading of legally issued stocks, bonds, warrants, securities investment funds or other securities recognized by the securities regulatory agency under the State Council.

Securities brokers shall not handle securities subscription or trading for customers.

Any units and individuals are forbidden to use the information of material assets reorganization to conduct unlawful activities such as inside dealings and manipulation of the securities market.