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Through its management and supervision of online securities trading services, the State Securities Commission has observed a high frequency of using robotic technology to automatically place online securities trading orders. This activity poses significant risks and affects the stability of the securities market.
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| The State Securities Commission has requested securities companies to stop using automated order placement systems. |
In its latest announcement, the State Securities Commission has requested securities companies to review and immediately cease the use of automated order placement; and to implement technical measures to prevent automated order placement and require investors to stop using this method until authorized by the regulatory authority.
According to the State Securities Commission, the use of robotic technology to automatically place online securities trading orders poses many risks and affects the stability of the stock market.
Specifically, automated order placement leads to a surge in orders from securities companies to the Stock Exchange simultaneously, causing the number of orders exceeding the system's design capacity and overloading the system. At the same time, this activity poses a risk of chain reactions when the market deteriorates, thereby negatively impacting the risk management of securities companies.
Accordingly, the State Securities Commission requires securities companies to seriously implement and be fully responsible before the law for the above issues.
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