China’s top commodities exchanges have been asked by the country’s exchange regulator to draft rules designed to “regulate the behavior of program trading” in futures markets, a move that follows a string of new regulations aimed at what authorities have deemed “malicious” trading in stock futures, Reuters reported, citing unnamed sources. Those stock futures regulations prompted hedge funds and other investors to steer their order flow into commodities, which had previously not been impacted by Beijing’s regulatory overhaul. Under a draft of he regulatory changes, anyone placing more than 4,000 trades per day based on more than five instances of five orders per second will be considered a program trader.
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