SASAC integrated and revised the supervision system of financial derivatives business of central enterprises

Xinhua News Agency, Beijing, January 20 (Reporter Wang Xi) Financial derivatives business is a common means for enterprises to manage risks. The State owned Assets Supervision and Administration Commission of the State Council recently issued a notice on the integration and revision of the regulatory system for financial derivatives business of central enterprises since 2009, further compaction of corporate responsibility, emphasizing strict adherence to the principle of hedging, prohibition of speculative transactions, and strengthening risk control.

According to the Notice on Matters Related to Strengthening the Management of Financial Derivatives Business, which was released on the 20th, financial derivatives business of central enterprises mainly includes commodity derivatives business (commodity based assets, including commodity futures, options, etc.) engaged in at home and abroad And currency derivatives (underlying assets in currency or interest rate, including forward contracts, futures, options, swaps, etc.).

The notice includes six parts, covering the key links before, during and after the event, and implementing classified control according to the different characteristics and risk levels of currency and commodity derivatives. The notice stressed that central enterprises should strictly abide by the principle of hedging when carrying out financial derivatives business, with the purpose of reducing physical risk exposure, adhere to the principle that transaction varieties should be related to the main business of enterprises, and adhere to the principle that transaction time, scale and direction should match physical goods.

As the decision-maker and beneficiary of using derivatives, enterprises must take responsibility. The notice issued this time further clarifies the responsibilities of the board of directors, management, functional departments and operating entities of the central enterprise group for the development of financial derivatives business. The central enterprises are required to establish a scientific incentive and constraint mechanism and a comprehensive evaluation mechanism of business effects to prevent the unilateral pursuit of financial derivative business profits from leading to speculation.

The notice puts forward a series of specific requirements for central enterprises to refine the risk control of financial derivatives business. For example, enterprises are required to establish information systems to realize online monitoring; Strictly implement the principle of separating the front, middle and back office, emphasize the requirements of authorization and approval, strictly prevent unauthorized and illegal operations, increase the requirements of margin control, and standardize the use of funds.

According to the notice, the State owned Assets Supervision and Administration Commission required central enterprises to report relevant business conditions quarterly and annually, and required special reports on important matters within 24 hours. At the same time, it is clear that the SASAC will deduct points or demote in the performance appraisal of central enterprises in case of major loss risk, serious impact and other problems, and carry out accountability according to the management authority of cadres.