The so-called IB (Introducing Broker) system refers to a system in which a securities company introduces an investor to a futures company and provides certain services to investors in conducting futures trading. The futures company therefore pays a commission to the securities company. The securities company is called the Introducing Broker (IB).
In 1981, the American Futures Association established a registration system. IB was originally used in grain warehouses to serve farmers, and also provided safe-haven transactions for farmers. The IB system is built on the business relationship between brokers and futures companies, and futures companies will take the initiative in the securities companies. Although the current domestic IB system has not yet been officially promulgated, the discussion of the IB system by brokers and futures companies has not stopped.
The entry barrier for the upcoming IB system in China may be high. Among the more than 100 securities companies in the country, only innovative securities companies are expected to obtain IB qualifications. At the same time, since securities companies are more willing to hold futures companies than to participate in shares, there will be some futures companies that are unwilling to lose control or have no intention of reorganizing securities companies. They will choose to re-register their own or asset management, so that they do not need Rely on the marketing channels and resources of securities companies. Some of the more powerful futures companies, such as the futures subsidiaries of the listed group companies, have the ability to increase capital and expand their shares to meet the capital requirements required for participation in stock index futures trading. They will choose to go to specialized futures companies. the way.
Relevant laws and regulations of the IB system
Article 23 of the New Regulations on the Administration of Futures Trading shall be engaged in futures investment consulting and other futures operating institutions (IB institutions) that provide intermediate introductions and other services for futures companies, and shall obtain the business qualifications approved by the futures regulatory authority of the State Council, and specific management measures. Formulated by the futures regulatory authority of the State Council.
Draft "Administrative Measures for Futures Companies", Article 67 Futures companies may entrust other institutions approved by the China Securities Regulatory Commission to engage in intermediate introduction business.
Article 87 If the futures company or its business department has any of the following circumstances, the CSRC and its dispatched offices may adopt corresponding regulatory measures in accordance with the provisions of Article 59 of the Regulations on the Administration of Futures Trading:
(VI) The intermediary introduction business (IB system) is not entrusted according to the regulations, and there are major risks or hidden risks in business activities.
(9) Entrusting the intermediary introduction business (IB system) in violation of the regulations, and damaging the legitimate rights and interests of customers.
Content of the IB system
The content of the IB system is: the futures company may entrust the futures trading inventor approved by the China Securities Regulatory Commission to engage in the recruitment of customers, assist in handling accounts, and assist customers in notifying customers; however, futures companies may not transfer risk management, settlement, and customer deposit access. The business is entrusted to the introducer.
Policy orientation of IB system design
1. Establish a firewall between the futures company and the securities company.
2. Conducive to the security of the deposit.
3, is conducive to the professional division of labor.
4. Conducive to supervision.
At present, the supervision of securities companies and the supervision of futures companies belong to two systems. If securities companies directly participate in financial futures trading, the supervision of securities companies is in one system and the futures trading business they engage in is in another set of supervision systems. This arrangement will have some adverse effects on regulation.
1. Three important characteristics of the futures market: Leveraged trading, daily mark-to-market and forced liquidation are completely different from the (securities) spot market.
2. The securities company is currently in the stage of comprehensive consolidation. The internal control system has not been well established. If the financial futures business is directly handed over to the securities company, it may adversely affect the securities company and the futures market itself.
3. The arrangement of brokerage IB system is not static. Yang Maijun said that financial mixed industry is the general trend in the future. As brokers gradually become familiar with the futures market culture, they can be given the right to directly participate in financial futures trading.