Chinese regulators have decided to delay the implementation of one of the country's new derivatives risk management rules, according to Risk magazine.

Most attention on regulation in the derivatives market has focused on Europe and the U.S., but some Asian nations have actually moved much more quickly in implementing reforms. This January the China Banking Regulatory Commission announced its intentions to restrict proprietary trading for all banks in the country, both foreign and domestic, but the agency has missed its own deadline to issue further details.

Dubbed "China's Volker rule," the regulation matches part of last year's Dodd-Frank financial reforms that limits banks' use of non-hedging derivatives to 3 percent of all activity. Foreign banks with limited presence in the country have taken issue with the rules and lobbied heavily to delay implementation.

"The [3 percent] rule has a disproportionate and discriminatory impact on foreign-invested institutions," the American Chamber of Commerce in China said in a statement. "AmCham-China encourages CBRC to adjust the new derivative measures to consider the capital base of and support from parent companies of foreign-invested institutions so they can contribute fully to China's market development.

Advanced Trading notes the Volker rule has proven impactful already, spurring banks to close their proprietary trading desks despite a long implementation window. Rapid implementation in China could prove painful for many banks.