Prohibit shorting in bear market is international practice.
For such withdrawals behavior (rules do not prohibit withdrawals), in fact, the domestic valuation algorithm can be modified (regulators need to consider malicious acts).
If someone (a lot) withdrawals occurred, weights cleared even negative.
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US company Citadel Securities and China Securities Regulatory Commission reached a settlement
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http://www.ftchinese.com/story/001086046#s=d
US company Citadel Securities and China Securities Regulatory Commission reached a settlement
Citadel Securities to pay nearly $ 100 million settlement fund to settle alleged violations of trading rules, the end of the investigation China Securities Regulatory Commission during the domestic stock market crash five years ago initiated.
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Updated 2020 at 07:00 on January 21 the British "Financial Times" reported that Hong Kong letter River
Citadel Securities has agreed to the Chinese authorities to pay nearly $ 100 million in alleged violation of trading rules of conduct reached a settlement agreement, thereby ending a survey started in China during the stock market crash five years ago.
China Securities Regulatory Commission (CSRC) said on Monday it had with four domestic institutional investors and market makers settlement agreement reached by the US hedge fund Citadel Securities • billionaire Ken Griffin (Ken Griffin) control. According to an informed source said, China Securities Regulatory Commission has lifted the 2015 closure measures for the implementation of Citadel Securities trading accounts in China.
China Securities Regulatory Commission said that the relevant punishment was "based on the applicant in its alleged violations in different situations such as income amount of money", but did not provide further details of the alleged violations. Citadel of 670 million yuan (US $ 97 million) settlement of gold, is 40 times more than 15.2 million yuan reconciliation gold four domestic companies paid a total of.
China Securities Regulatory Commission said the companies "have taken the necessary measures to strengthen the company's internal control," and it had "terminated the investigation on the applicant the conduct of proceedings."
Citadel hedge funds and independent market-making business specializing in algorithmic trading, during the 2015 Chinese stock market crash, regulators have attacked such transactions. August of that year, China Securities Regulatory Commission suspended the trading account Citadel Securities in Shanghai operation. China Securities Regulatory Commission subsequently launched an investigation on China's stock futures market in the "malicious short", closed on suspicion of "influence trading prices of securities or investment decisions of other investors," the 24 trading account.
At that time China Securities Regulatory Commission on the "Sapporo cheat" (spoofing) behavior - that is, investors with a buy or sell order, but withdrew before the completion of the transaction instruction aimed at price-fixing - expressed concern. It also criticized the algorithmic trading exacerbated market volatility during the stock market crash, it fell final round of the China's stock market capitalization has shrunk more than 24 trillion yuan. Other analysts say, that was the stock market crash is more likely reason is that official regulation margin lending operation, in which investors borrow money to buy stock brokers.
Citadel Securities said its "working closely with the China Securities Regulatory Commission in the reconciliation process" to reach an agreement. "Constructive solution to the problem of Citadel Securities is important because China continues to expand opportunities for foreign participation in its financial markets."
A trader at a Chinese brokerage house, said the settlement agreement is handed out an olive branch to foreign investors, who added that further opening up the domestic market to the global asset management company in China on the occasion, the market regulator 'needs become good at dealing with large quantities of very active investors. "
Translator / wind
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