The derivatives market is limited to currency and interest rate futures, futures and forwards market for commodities and interest rate and cross-currency swaps. The China Banking Regulatory Commission (CBRC) defines and classifies derivatives trading, and sets requirements for risk control and trading supervision. Only CBRC-qualified financial institutions are allowed to provide derivative transactions.

In 2005, the People’s Bank of China (PBC) issued administrative rules for trading bond forwards in the interbank market. Bond forward transactions are limited to central government bonds, central bank bonds, financial bonds, or other bonds authorized by the PBC.