On December 6, 2021, the China State Administration of Foreign Exchange ("SAFE") issued the Guidelines on the Code of Conduct for Transactions in the Foreign Exchange Market (the "Guidelines"), with effect on January 1, 2022.

The Guidelines aim to promote the honest, fair, orderly and efficient operation of the foreign exchange (FX) market. The Guidelines include the main content as follows: the provisions of the Guidelines (1) are applicable to the inter-bank market and the over-the-counter (OTC) market; (2) regulate all parties involved in the FX market, including not only institutions engaged in FX transactions, but also the China Foreign Exchange Trading Center ("CFETC"), Shanghai Clearing House, and currency brokerage companies; (3) place focus on regulating the FX market transaction conduct, centering on transaction management and information management; and (4) set a one-year transitional period for banks and other financial institutions to conduct FX OTC transactions with customers.

(Source: China State Administration of Foreign Exchange)