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Brokerage Trading Units Undergo Comprehensive Rectification; Exchanges Require Institutions to Report Compliance

On June 4, according to a report from Yicai, it has been learned from industry sources that the exchange recently issued the 'Guidelines for Trading Gateway Management (Trial)', which will take effect on August 31 of this year, and sent a notification regarding the strengthening of management for participants' trading business units. The Shanghai Stock Exchange (SSE) released a notification clarifying that members should conduct self-inspections regarding the usage of participants' trading business units. If any non-compliance with relevant regulations is found, rectification must be completed within three months from the date of the notification's release (May 29). The notification states that members should ensure fair allocation within trading units, treat investors equitably, protect the legitimate rights and interests of investors, especially small and medium-sized investors, and are strictly prohibited from providing special conveniences to individual investors. Additionally, before applying for new ordinary brokerage and margin trading dedicated trading units, members must ensure that the number of applied trading units matches their own brokerage business scale and that they are making full use of the applied trading units. The SSE also mentioned that members should ensure that the rectification work is carried out smoothly and orderly.

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