Key practical points:
• Covers exchange-traded standardized futures and over-the-counter (OTC) derivatives.
• Gives legal recognition to central counterparty (CCP) clearing and to close-out netting on default.
• Prohibits price manipulation and insider dealing in derivatives markets.
• Regulates access of foreign participants and provides a basis for extraterritorial application where the Chinese market is affected.
• Protects client funds by segregating them from the futures brokerage's own funds.
Futures and Derivatives Law · Yalla China
中华人民共和国期货和衍生品法 / Futures and Derivatives Law
Enacted: 2022-04-20 ✅ Effective: 2022-08-01
📝 Overview
China's first comprehensive law governing futures, options and derivatives trading, clearing and settlement, and trader protection. Adopted in 2022 and effective 1 August 2022.
This is general information only, not legal advice. For your specific case, consult a licensed lawyer.
📜 The law text / key provisions
💬 Practical reading
💬 This is a general reading/opinion for orientation — not the official legal text nor legal advice.
If you trade futures or hedge commodity risk, this law gives the first clear framework for the validity of clearing and close-out netting on counterparty default. Deal only through licensed brokers and note that your funds are segregated from the broker's. General orientation, not legal advice.
📎 Official source
npc.gov.cn
🕒 Updated: 16 March 2026