Regulatory indecision holds up equity derivatives trades in China
Two different sets of master agreements cause stalemate between banks and securities firms
The lack of guidance from Chinese regulatory authorities on which master agreement to use for equity derivatives transactions has created uncertainty for trades between onshore banks and securities houses and led to a number of deals being put on hold.
Onshore banks are regulated by the China Banking Regulatory Commission (CBRC) while the China Securities Regulatory Commission (CSRC) oversees securities houses. As part of the push by the CSRC to encourage the development of an onshore
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