Beijing Options and Futures Exchange (BOFX) Issues a Revamped Business Rules for Commodities Brokers

The Revamped Rules will take effect with the first day of the next month.

Online PR News – 01-March-2016 – Beijing – BOFX today issued the revamped Rules of Beijing Options and Futures Exchange (Revamped Rules) to strike a balance between being facilitative of business and market development and, ensuring the effectiveness for market regulation through the revamp, we have introduced some liberalization and where appropriate, adopted a more principles-based regime in market regulation. This revamp recognizes that the commodities industry has changed substantially and commodity brokers (also known as Participating Organizations (POs) have evolved over the years. There are now many different types of entities with differing business models, sizes, activities and risk exposures, carrying on the business of trading in commodities. The POs have also matured considerably in their compliance culture.

Hence, we have strengthened the governance framework of the POs, but liberalized certain requirements imposed on POs leaving it to the POs to self-regulate. The revamp will bring greater ease to the POs in managing their compliance obligation.
In order to reduce the regulatory burden on the POs without compromising on investor protection, we have also simplified and streamlined the rules generally as well as our processes, application and reporting requirements. Through the revamp exercise, we also streamlined all directives issued previously for ease of compliance.

BOFX Chief Executive Officer, Shen G. Zhaobai said: “The key is in striking a balance between market development and regulatory objectives. The flexibility and liberalizations put in place under the revamp would allow the POs to enhance their efficiency and reduce their cost of doing business whilst not compromising on regulatory objectives.”

About Beijing Options and Futures Exchange ( brings together participants from the physical industry and the financial community to create a robust and regulated market where there is always a buyer and a seller, where there is always a price and where there is always the opportunity to transfer or take on risk – 24 hours a day. Investors value the BOFX as a vibrant futures, options and commodity exchange but also for its close links to industry. The Exchange provides producers and consumers from all industries with a physical market of last resort and, most importantly of all, with the ability to hedge against the risk of rising and falling world commodities prices.

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