China publishes rules to boost data security in money brokering (updated)

Compagnie Financiere Tradition SA

30/08/2023 05:05

(Adds details of service providers approved to work with money
brokers in paragraphs 4-5)
       SHANGHAI, Aug 30 (Reuters) - China published rules on
Wednesday aimed at boosting data security in the money brokering
industry, five months after a disruption in data services caused
two days of chaos in the country's $21 trillion bond market.
    Five financial watchdogs, including the central bank as well
as forex and securities regulators, urged interdealer brokers to
improve data and risk management, and safeguard data security.
    Interdealer brokers, when offering data services, "must not
endanger national security, financial safety and public
interest," the regulators said in a joint statement. 
    The regulators also provided a list of over 70 financial
information service providers that are approved to collaborate
with money brokers. These providers include China Foreign
Exchange Trade System, Shanghai Stock Exchange, Wind Information
Co Ltd, Refinitiv Information Services (China) Co Ltd, and
Bloomberg L.P.. 
    Refinitiv, formerly a division of Thomson Reuters  TRI.TO ,
is now part of the London Stock Exchange Group (LSEG)  LSEG.L .
LSEG pays Thomson Reuters for news it distributes on Refinitiv
terminals. Thomson Reuters, which owns Reuters News, holds a
minority stake in LSEG.      
    Chinese regulators in March suspended the data feed business
of money brokers, citing data security concerns, triggering a
slump in bond trading turnover as many traders lost immediate
access to real-time data. The chaos ended after China allowed
business resumption.    
    China has in recent years grown more concerned over data
security and rolled out new laws and compliance requirements for
companies.
    Money brokers act as middlemen between dealers. Interdealer
brokers in China include the joint ventures of Tullett Prebon,
NEX International Ltd, BGC Partners, Central Tanshi and
Compagnie Financiere Tradition. 
    Such brokers can provide price quotation data to the market
after exchange authorisation, but must protect client privacy,
Chinese regulators said on Wednesday.
    Brokers must tighten scrutiny over traders' qualifications,
and submit relevant business data to regulators, according to
the rules.
    The National Administration of Financial Regulation and the
Cyberspace Administration of China are also among the agencies
that published the rules. 

 (Reporting by Shanghai newsroom; Editing by Jacqueline Wong;
Editing by Muralikumar Anantharaman and Mark Potter)
 ((samuel.shen@thomsonreuters.com;  +86 21 20830018; Reuters
Messaging: samuel.shen.thomsonreuters.com@reuters.net))