Chinese authorities rolled out new rules to regulate data services provided by money brokers, tightening their grip on security in the sector.
(Bloomberg) — Chinese authorities rolled out new rules to regulate data services provided by money brokers, tightening their grip on security in the sector.
Money brokers are now required to improve safeguards such as strengthening their risk control capability and enhancing data security, according to a joint notice released on Wednesday by authorities including the National Administration of Financial Regulation and the People’s Bank of China.
According to the document posted on the website of the NAFR, the new rules are aimed at implementing more transparency of information and enhancing fair competition.
The regulations come in the wake of a sudden halt of bond price feeds in March, which forced thousands of institutional customers to look elsewhere for pricing. Qeubee, a popular bond-quote screen operated by data platform Sumscope, was excluded at the resumption of price feeds in early April.
“The regulation on money brokers’ data collection and displays will help ensure data and service security, and enhance the transparency and efficiency of bond-market transactions,” said Zhang Kaikai, investment director with Shanghai Gofar Asset Management Co.
In the policy document, regulators confirmed a list of institutions which have been approved to receive data services from money brokers, including Sumscope, Wind, and East Money Information. The list also includes Bloomberg LP.
(Updates with investor comment in 5th paragraph.)
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