100+ Free China Futures Laws & Regulations Practice Questions

Prepare for the China Futures Practitioner Qualification Examination — Futures Laws and Regulations (期货法律法规) exam with instant access — no signup required.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately

100+ Questions

100% Free

Loading practice questions...

Same family resources

Explore More China Futures Professional Qualification Examinations (期货从业人员资格考试)

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

Futures Fundamentals (期货基础知识, China)

Practice Questions100 questions

Futures Investment Analysis (期货投资分析, China)

Practice Questions100 questions

2026 Statistics

Key Facts: China Futures Laws & Regulations Exam

60 / 100

Official Passing Score (60%)

China Futures Association (CFA)

100 mins

Official Exam Duration (130 Questions)

CFA Examination Blueprint

Aug 1, 2022

Effective Date of Landmark PRC Futures and Derivatives Law

National People's Congress Standing Committee

RMB 30 Million

Statutory Minimum Net Capital Threshold for Futures Companies

CSRC Measures on Futures Company Risk Control Indicators

RMB 65

National Registration Fee Per Subject Paper

China Futures Association

2 Years

Individual-subject result validity under current examination rules

CFA Qualification Management Rules

Futures Laws and Regulations (期货法律法规) is a current China Futures Association examination subject. The official test comprises 130 computer-based objective questions in 100 minutes with a 60/100 passing benchmark. The outline covers the legal system, practitioner and company regulation, self-regulation, administrative supervision, judicial rules, offences, and ethics, with additional materials announced for September 2026. This bank delivers an English-language MCQ study adaptation and is not legal advice, an official translation, or practitioner registration.

Sample China Futures Laws & Regulations Practice Questions

Try these sample questions to test your China Futures Laws & Regulations exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1The PRC Futures and Derivatives Law (《中华人民共和国期货和衍生品法》) was officially enacted by the Standing Committee of the National People's Congress and came into effect on which date, and what is its primary statutory objective?

A.Effective January 1, 2021, to restrict private capital participation in financial markets.

B.Effective July 1, 2021, to merge futures exchanges with commercial banking clearing systems.

C.Effective August 1, 2022, to standardize futures and derivatives trading, protect lawful rights, prevent systemic risks, and promote high-quality financial market development.

D.Effective December 31, 2023, to replace the Securities Law with a single unified commercial code.

Explanation: Under Article 1 of the PRC Futures and Derivatives Law (promulgated on April 20, 2022), the Law officially took effect on August 1, 2022. Its statutory purpose is to standardize futures and derivatives transactions, protect the legitimate rights and interests of all market participants, prevent and mitigate financial risks, maintain national financial security, and promote the healthy development of the socialist market economy.

2Under Article 2 of the PRC Futures and Derivatives Law, how is a 'Futures Contract' (期货合约) statutorily defined?

A.A non-standardized bilateral agreement executed privately off-exchange for immediate cash settlement.

B.A standardized contract formulated by a futures trading venue stipulating the delivery of a specific quantity of an underlying asset at a specified time and place in the future, or cash settlement based on settlement prices.

C.An informal letter of intent between an industrial enterprise and a commercial bank for currency hedging.

D.A discretionary trust agreement authorizing a broker to purchase spot physical commodities at market open.

Explanation: Article 2, Paragraph 2 of the PRC Futures and Derivatives Law defines a futures contract (期货合约) as a standardized contract formulated by a futures trading venue (期货交易场所) that stipulates the delivery of a specified quantity of underlying assets at a specific future time and place, or the cash settlement of price differences based on futures prices.

3According to Article 3 of the PRC Futures and Derivatives Law, which of the following activities constitutes 'Derivatives Trading' (衍生品交易) as governed by the statute?

A.Standardized stock trading executed on the Shanghai and Shenzhen Stock Exchanges.

B.Spot commodity auction transactions concluded in an agricultural wholesale warehouse.

C.Physical gold spot purchases at retail banking counters.

D.Over-the-counter (OTC) financial transactions such as swaps (互换), forwards (远期), and non-standardized options (非标准化期权) whose value is derived from underlying assets.

Explanation: Article 3 of the PRC Futures and Derivatives Law defines derivatives trading as financial contracts—such as swaps, forwards, and non-standardized options—conducted outside futures trading venues or on other authorized venues, whose value is determined by the price fluctuations of one or more underlying assets, indices, or financial indicators.

4Under Article 93 of the PRC Futures and Derivatives Law, what is the legal nature and function of a Central Counterparty (CCP / 中央对手方) in futures clearing?

A.The CCP legally acts as the buyer to every seller and the seller to every buyer (novation), providing centralized clearing and guaranteeing settlement performance.

B.The CCP acts merely as an informational matching agent without assuming any counterparty credit risk.

C.The CCP is a government ministry directly paying client losses from the state budget.

D.The CCP is an optional commercial insurance intermediary used only during physical delivery defaults.

Explanation: Under Article 93 of the PRC Futures and Derivatives Law, a futures clearing institution acts as the central counterparty for futures trading, conducts net settlement, and provides centralized performance security. Economically, it interposes itself between buyers and sellers and assumes the corresponding settlement obligations.

5Article 35 of the PRC Futures and Derivatives Law establishes the legal enforceability of Close-out Netting (终止净额结算). What is the statutory treatment of close-out netting when a counterparty enters bankruptcy proceedings?

A.Close-out netting remains contractual but is automatically stayed until every underlying transaction is valued separately by the bankruptcy court.

B.The administrator may assume profitable transactions and reject loss-making transactions covered by the same master agreement.

C.Close-out netting agreed under a master agreement is legally valid and enforceable, and shall not be stayed, suspended, or revoked by bankruptcy insolvency proceedings.

D.Close-out netting survives bankruptcy only for exchange-cleared futures, not for qualifying bilateral derivatives under a master agreement.

Explanation: Article 35 of the PRC Futures and Derivatives Law provides that close-out netting (终止净额结算) carried out under a lawful master agreement is not stayed, invalidated, or revoked because a party enters bankruptcy proceedings. This protects the agreed net settlement of covered derivatives transactions.

6What is the legal effect of the 'Single Master Agreement' principle (单一主协议原则) codified under Article 32 of the PRC Futures and Derivatives Law?

A.Parties can only execute a single transaction per year under one master agreement.

B.All master agreements must be drafted in a single standardized Chinese template approved by the State Council.

C.The master agreement, all supplemental agreements, and all individual transaction confirmations executed under it legally constitute a single unified and indivisible contract.

D.The master agreement must only bind one individual practitioner rather than corporate legal entities.

Explanation: Under Article 32 of the PRC Futures and Derivatives Law, a master agreement (主协议), its supplemental agreements, and all transaction agreements between the parties under it constitute a single, complete agreement. This contractual unity supports close-out netting across the covered transactions.

7Under Article 18 of the PRC Futures and Derivatives Law, which requirement governs the opening and usage of trading accounts by futures market participants?

A.The Real-Name Account System (实名制); participants must open accounts under their authentic identities and are strictly prohibited from lending, borrowing, or controlling accounts in violation of rules.

B.An anonymous trading system designed to protect high-net-worth investor privacy from tax authorities.

C.A proxy account pooling system where brokerages may trade omnibus accounts without identifying individual beneficial owners.

D.A foreign currency trust system where non-residents are exempt from identity verification.

Explanation: Article 18 of the PRC Futures and Derivatives Law mandates a strict real-name account system (实名制). Futures traders must open accounts using authentic identity documents. No entity or individual may violate regulations by lending their own trading account or borrowing another person's trading account to conduct futures transactions.

8Article 51 of the PRC Futures and Derivatives Law classifies futures and derivatives investors into which two statutory categories, and how does protection differ between them?

A.Domestic Investors and Foreign Investors, with foreign investors receiving preferential tax subsidies.

B.Speculative Traders and Arbitrageurs, with speculative traders receiving regulatory exemptions.

C.Ordinary Investors (普通投资者) and Professional Investors (专业投资者), with ordinary investors receiving special statutory protections regarding risk disclosure and suitability.

D.Retail Day Traders and High-Frequency Traders, with day traders exempt from margin rules.

Explanation: Article 51 of the PRC Futures and Derivatives Law categorizes investors as Ordinary Investors (普通投资者) or Professional Investors (专业投资者), and places a heavier burden of proof on a futures operator in a dispute with an ordinary investor. Article 50 separately requires suitability assessment and truthful, sufficient risk disclosure.

9Under Article 51 of the PRC Futures and Derivatives Law, if a civil dispute arises between an Ordinary Investor and a futures business entity regarding suitability obligations, who bears the burden of proof (举证责任)?

A.The ordinary investor must prove that the futures entity acted with gross negligence or intentional fraud.

B.The futures business entity bears the burden of proving that its conduct complied with statutory suitability requirements and that there was no misleading behavior.

C.The futures exchange automatically assumes civil liability on a strict liability basis.

D.Both parties submit no evidence, and the court splits losses equally by statutory presumption.

Explanation: Article 51 of the PRC Futures and Derivatives Law introduces an inverted burden of proof (举证责任倒置): where an Ordinary Investor has a dispute with a futures经营机构 regarding suitability obligations, the futures institution must prove that it complied with laws, administrative regulations, and CSRC rules and did not mislead the investor; if it cannot prove compliance, it bears civil compensation liability.

10How does Article 2, Paragraph 3 of the PRC Futures and Derivatives Law address extraterritorial application (域外适用) of Chinese futures and derivatives regulation?

A.PRC laws apply exclusively within mainland China and have no legal jurisdiction over foreign activities under any circumstances.

B.All foreign derivatives traders worldwide must obtain an individual license from the CSRC before trading foreign commodities.

C.Futures and derivatives trading activities outside the territory of the PRC that disrupt domestic market order or harm the legitimate rights and interests of domestic traders are subject to statutory investigation and legal liability under this Law.

D.Overseas trading venues are automatically absorbed as subsidiaries of Chinese commodity exchanges.

Explanation: Article 2, Paragraph 3 of the PRC Futures and Derivatives Law establishes extraterritorial jurisdiction: where futures and derivatives transactions and related activities conducted outside the territory of the PRC disrupt domestic market order or damage the lawful rights and interests of domestic market entities, they shall be dealt with and pursued for legal liability in accordance with this Law.

About the China Futures Laws & Regulations Exam

Futures Laws and Regulations (期货法律法规) is a China Futures Association examination subject; the current designated textbook is Futures Laws, Regulations and Professional Ethics (期货法律法规与职业道德). It covers the legal system, practitioners, futures companies, self-regulatory bodies, administrative supervision, judicial rules, offences, and ethics. The September 2026 announcement adds specified discipline and legal-education materials. This English-language MCQ bank is not an official translation, exact format simulation, licence, or substitute for consulting current Chinese legal texts.

Questions

130 scored questions

Time Limit

100 minutes

Passing Score

60 / 100 (60%)

Exam Fee

RMB 65 per subject paper under current CFA registration standards (China Futures Association (中国期货业协会 / CFA))

China Futures Laws & Regulations Exam Content Outline

30%

PRC Futures and Derivatives Law (期货和衍生品法)

Legislative objectives, statutory definition of futures and OTC derivatives contracts, Central Counterparty (CCP / 中央对手方) legal novation, statutory enforceability of close-out netting (终止净额结算) in bankruptcy, master agreement integration, real-name account mandates, investor suitability classification (ordinary vs. professional), program trading filing rules, cross-border regulation, and extraterritorial enforcement provisions.

25%

Futures Trading Regulations & Market Infrastructure (期货交易管理条例与市场基础设施)

Regulation on the Administration of Futures Trading (《期货交易管理条例》), futures exchange establishment and operational oversight, clearinghouse functions, designated delivery warehouse standards and warehouse receipts, CFMMC closed-loop margin monitoring, daily mark-to-market settlement obligations, margin call and forced liquidation statutory workflows, and the Futures Investors Protection Fund.

20%

Futures Company Supervision & Net Capital Rules (期货公司监督管理与净资本风控)

Measures for the Administration of Futures Companies, corporate governance, shareholder qualifications and change of control rules, Chief Risk Officer (CRO) responsibilities, four Net Capital risk control benchmarks (Net Capital >= 30M RMB, Net Capital / Net Assets >= 20%, Net Capital / Total Liabilities >= 8%, Net Assets / Total Liabilities >= 20%), risk management subsidiary compliance, asset management mandates, and Anti-Money Laundering (AML) reporting.

15%

Practitioner Conduct, Registration & Professional Ethics (从业人员资格管理与职业道德准则)

CFA qualification testing, registration, and continuing education protocols, CFA Code of Professional Conduct, fiduciary loyalty, strict prohibition of return guarantees or principal assurances, absolute ban on unauthorized trading or managing secret private accounts, confidentiality, conflict disclosure, whistleblower safeguards, and CFA self-regulatory disciplinary sanctions.

10%

Legal Liabilities, Sanctions & Judicial Interpretations (法律责任、行政处罚与司法解释)

CSRC administrative sanctions and Criminal Law penalties for illegal futures brokerage, fraud, market manipulation (wash sales, spoofing, cornering, fictitious orders), insider trading, unauthorized margin financing, and the Supreme People's Court Judicial Interpretation on Several Issues Concerning the Trial of Futures Dispute Cases regarding civil damages, loss allocation, and forced liquidation validity.

How to Pass the China Futures Laws & Regulations Exam

What You Need to Know

Passing score: 60 / 100 (60%)
Exam length: 130 questions
Time limit: 100 minutes
Exam fee: RMB 65 per subject paper under current CFA registration standards

Keys to Passing

Work through all 100 available questions
Review every answer and explanation
Track weak areas and revisit them
Use our AI tutor for tough concepts

China Futures Laws & Regulations Study Tips from Top Performers

1Memorize the key statutory ratios: Net Capital >= RMB 30M, Net Capital/Net Assets >= 20%, Net Capital/Total Liabilities >= 8%, and Net Assets/Total Liabilities >= 20%.

2Understand the legal novation of CCP (中央对手方) and the non-stay of close-out netting (终止净额结算) during bankruptcy under the 2022 Futures and Derivatives Law.

3Master the role of the China Futures Market Monitoring Center (CFMMC): closed-loop monitoring of client margin, daily cross-checking of exchange and bank data, and real-name account verification.

4Internalize strict practitioner ethical taboos: never promise returns or guarantee principal, never manage private unauthorized accounts, never share profits, and avoid conflicts of interest.

5Drill civil liability rules from the Supreme People's Court judicial interpretation: client ratification by non-objection to settlement statements, illegal forced liquidation damages, and margin call notice delivery standards.

6Review market manipulation archetypes under CSRC regulations: wash trading (自买自卖), spoofing/fictitious orders (虚假申报), cornering/squeezing (囤积现货操纵), and insider trading.

Frequently Asked Questions

What is the China Futures Laws and Regulations examination?

It is one of the qualification-examination subjects administered by the China Futures Association. A qualifying combined result supports the examination result certificate, while employment and practitioner registration are governed separately.

What is the official format, timing, and passing score of the exam?

The official exam is a 100-minute closed-book computer-based test (CBT) consisting of 130 objective questions (single-choice, multi-choice, true/false, and case analysis questions). Scored out of 100 points, the passing score is 60 points (60%).

What is the legal status of Close-out Netting (终止净额结算) under the 2022 PRC Futures and Derivatives Law?

The PRC Futures and Derivatives Law recognizes single-master-agreement and close-out-netting arrangements and protects qualifying termination netting from being stayed or revoked solely because a counterparty enters bankruptcy proceedings. Candidates should apply the statutory conditions and current implementing documents rather than treating every bilateral arrangement as automatically protected.

What are the four mandatory Net Capital risk control benchmarks for Chinese futures brokerages?

Under CSRC rules, futures companies must comply with four core risk indices: (1) Net Capital (净资本) must not fall below RMB 30 million; (2) Net Capital / Net Assets (净资本/净资产) must be >= 20%; (3) Net Capital / Total Liabilities (净资本/境内外期货及其他负债) must be >= 8%; and (4) Net Assets / Total Liabilities (净资产/境内外期货及其他负债) must be >= 20%.

How does the Supreme People's Court allocate civil liability in futures disputes involving unauthorized trading?

The Supreme People's Court rules distinguish unauthorized trading from client ratification and consider the agreement, notice and settlement-statement evidence, each party's conduct, and causation when allocating loss. A non-objection clause can be relevant evidence, but it should not be reduced to an automatic all-loss rule without the facts required by the judicial interpretation.