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BEIJING : China’s securities regulator said on Wednesday it will continue to strengthen supervision of over-the-counter derivative businesses including the so-called DMA-Swap.
The regulator will guide the securities industry to control business size and leverage, and crack down on illegal activities to maintain market order, the China Securities Regulatory Commission said in a statement.
Through the DMA-Swap, hedge funds can borrow up to $4 against every $1 they deposit with the broker in the margin account, while also skirting regulatory borrowing limits by having such trades sit on brokers’ books.
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