China will come up related legislation to improve supervision over derivative trading, said Zang Tiewei, spokesperson of the National People's Congress Standing Committee's Legislative Affairs Commission, at a news conference on Thursday.

The recent nickel turmoil in the London Metal Exchange has aroused much concern. Therefore, the country's draft futures and derivatives law, which is awaiting a third review from the Standing Committee of the NPC, the country's top legislative body, will further clarify the management rules regarding overseas institutions' marketing activities in the onshore market, said Zang.

Investors' lawful rights and interests will be better protected under such clarification. Meanwhile, the draft law is aimed to prevent and defuse financial risks so that the country's economic security can be safeguarded, he said.

The draft law reportedly has a complete mechanism regarding futures trading, including position limits, hedging and margin systems. It has also stated supervisory bodies' responsibilities to prevent systematic risks, setting up a futures market monitoring mechanism and cracking down on violations.