The present Law is enacted in order to regulate trading in futures and derivatives , protect the legitimate rights and interests of all parties concerned, maintain the market order and social public interests, promote the futures market and derivatives market to serve the national economy, guard against and resolve financial risks and safeguard the national economic security.

The present Law applies to trading in futures and derivatives and other related activities within the territory of the People's Republic of China.

Where the trading in futures and derivatives and other related activities outside the territory of the People's Republic of China disrupt the domestic market order of the People's Republic of China and harm the legitimate rights and interests of domestic traders, such trading and related activities shall be dealt with pursuant to the relevant provisions of the present Law and legal liability shall be pursued.

For the purpose of the present Law, the term "trading in futures" refers to trading activities that take a futures contract or a standardized option contract as the subject matter.

For the purpose of the present Law, the term "trading in derivatives" refers to trading activities other than trading in futures that take a swap contract, a forward contract, a non-standardized option contract or a portfolio thereof as the subject matter.

For the purpose of the present Law, the term "futures contract" refers to a standardized contract that is uniformly formulated by a futures exchange, which stipulates that a certain quantity of the subject matter will be delivered at a specific time and venue in the future

For the purpose of the present Law, the term "option contract" refers to a standardized or non-standardized contract that specifies that the buyer is entitled to buy or sell the agreed subject matter (including futures contracts) at a specific price at a certain time in the future.

For the purpose of the present Law, the term "swap contract" refers to a financial contract that stipulates the mutual exchange of specific subject matter within a specific period of time in the future.

For the purpose of the present Law, the term "forward contract" refers to a financial contract other than a futures contract, which specifies the delivery of a certain quantity of subject matter at a specific time and venue in the future.

The state supports the sound development of the futures market in exerting the functions of discovering prices, managing risks, and allocating resources.

The state encourages the use of the futures market and derivatives market to engage in hedging and other risk management activities.

The state takes measures to promote the development of the futures market and derivatives market for agricultural products and guide domestic production and business operation of agricultural products.

For the purposes of the present Law, the term "hedging" refers to the activities of a trader who, for the purpose of managing risks arising from changes in the value of its assets or liabilities, enters into futures transactions and derivatives transactions that substantially correspond to the above-mentioned assets, liabilities, etc..

Futures markets and derivatives markets shall establish and improve upon mechanisms to monitor and control, resolute and dispose of risks, limit excessive speculation in accordance with the law, and guard against systemic risks in the markets.

It is imperative to comply with laws, administrative regulations and relevant provisions of the state, to follow the principles of openness, fairness and impartiality, and to prohibit fraud, market manipulation and insider in the trading in futures or derivatives.

Parties participating in the trading in futures or derivatives have equal legal status, and shall follow the principles of free will, compensation and good faith.

The futures regulatory agency of the State Council conducts centralized and unified supervision over and administration of futures markets nationwide. Where the State Council otherwise provides for the supervision and administration of interest rate or exchange rate futures, such provisions shall prevail.

The futures regulatory agency of the State Council or any other department authorized by the State Council shall carry out supervision and administration of derivatives market according to their respective duties.

Futures and derivatives industry associations shall exercise self-regulation in accordance with the law.

The audit authority of the state shall exercise supervision through auditing over futures business institutions, futures trading venues, futures clearing agencies and the futures regulatory agency of the State Council according to law.

The trading in futures shall be conducted in a futures exchange established according to the law or any other futures trading venue approved by the futures regulatory agency of the State Council to trade in futures (hereinafter collectively referred to as the "futures trading venue") in an open and centralized manner or any other manner approved by the futures regulatory agency of the State Council.

It is prohibited to conduct any trading in futures outside futures trading venues.

Trading in derivatives may be conducted by agreement or in any other way as prescribed by the State Council.

No entity or individual may manipulate the futures market or the derivatives market.

It is prohibited to manipulate the futures market by any of the following means so as to affect or attempt to affect the trading price or volume of futures:

(I) Independently or in collusion with others, centralizing the advantages of funds, positions or information to jointly or continuously buy and sell contracts;

(II) Colluding with others to conduct trading in futures with each other at a pre-agreed time, price and in a pre-agreed way;

(III) Conducting trading in futures between the accounts under the actual control of the same person;

(IV) Inducing traders to conduct trading in futures by use of false or uncertain material information;

(V) Placing and canceling orders frequently or in large numbers, not for the purpose of the consummation of trades.;

(VI) Making public evaluation, forecast or investment suggestions on the relevant trading in futures or the subject matter of a contract, and conducting reverse operations or other relevant operations;

(VII) Hoarding spot commodities in order to affect the futures market;

(VIII) Evading position limits by improper means in the delivery month or approaching the delivery month and obtaining position advantages;

(IX) Manipulating the futures market by conducting activities on the relevant market; and

(X) Other means of manipulating the futures market.

Any insider who has access to the insider information on trading in futures or derivatives or any person who has illegally obtained any insider information may not engage in the relevant trading in futures or derivatives before the insider information is disclosed, expressly or implicitly advise others to engage in the relevant trading in futures or derivatives relating to the insider information, or divulge the insider information.

For the purpose of the present Law, the term "insider information" refers to the undisclosed information that may have a significant effect on the trading price of futures or derivatives.

The insider information on trading in futures shall include:

(I) The policies, information or data that are being formulated or have not been released by the futures regulatory agency of the State Council and other relevant authorities and may have a significant effect on the trading price of futures;

(II) The decisions made by any futures trading venue or futures clearing institution that may have a significant effect on the trading price of futures;

(III) The fund and trading trends of members and traders in a futures trading venue;

(IV) The major abnormal trading information in the relevant market; and

(V) Other information that may have a significant effect on the trading price of futures as prescribed by the futures regulatory agency of the State Council.

For the purpose of the present Law, the term "insider" refers to any entity or individual who has access to or obtains the insider information by virtue of business position, management position, supervision position or convenience of duties.

Persons in the know of insider information on trading in futures shall include:

(I) The relevant staff of a futures business institution, futures trading venue, futures clearing agencies and futures service organizations;

(II) The staff of the futures regulatory agency of the State Council and other relevant authorities; and

(III) Other entities and individuals that may have access to the insider information as prescribed by the futures regulatory agency of the State Council.

It is prohibited for any entity or individual to fabricate or disseminate any false or misleading information that may disturb the futures market or the derivatives market.

It is prohibited for the futures business institutions, futures trading venues, futures clearing agencies and futures service organizations and their staff, the venues and organizations that organize and conduct the trading in derivatives and their staff, and the futures and derivatives associations, the futures regulatory agency of the State Council, the departments authorized by the State Council and their staff to make any false statement or providing any misleading information in the trading in futures, trading in derivatives and other relevant activities.

The information about the futures market and the derivatives market disseminated by any mass media shall be authentic and objective and may not be misleading. No mass media or any of its staff that engages in the information reporting of the futures market and the derivatives market may engage in the trading in futures or derivatives and other relevant activities that have a conflict of interest with its/his duties.

The listing of the varieties of futures contracts and standardized option contracts shall comply with the provisions of the futures regulatory agency of the State Council and be reported by the futures trading venue concerned to the futures regulatory agency of the State Council for registration in accordance with the law.

The suspension, resumption and termination of the listing of the varieties of futures contracts and standardized option contracts shall comply with the provisions of the futures regulatory agency of the State Council and be determined by the futures trading venue concerned, which shall be filed with the futures regulatory agency of the State Council for record

The varieties of futures contracts and standardized option contracts shall have the economic value, and the contracts shall not be easily manipulated and shall be in line with the public interest.

The trading in futures shall be conducted under the real-name account system. To conduct trading in futures, a trader shall apply for the opening of an account in his/her own name on the strength of a lawful document proving his/her identity.

No entity or individual may, in violation of the related provisions, lend its/his futures account or borrow any other's futures account to conduct trading in futures.

Whoever trades in futures on a futures trading venue shall be a member of the futures trading venue or any other participant in compliance with the rules of the futures regulatory agency of the State Council.

Traders entrusts a futures trading venue with trading may venue orders in writing, by telephone, self-service terminal or network. The orders shall be clear, specific and complete.

Algorithmic trading executed based on orders automatically generated or venued by computer programs shall comply with the rules of the futures regulatory agency of the State Council, and be reported to the futures trading venue, and shall not affect the system security or the normal trading order of the futures trading venue.

A margin system shall be adopted for trading in futures. Futures clearing institutions shall collect margins from clearing participants and clearing participants shall collect margins from traders. Margins shall be used for clearing and performance security.

The margins shall be in the form of cash, negotiable securities with high liquidity such as treasury bonds, stocks, fund units and standard warehouse receipts, as well as any other property as prescribed by the futures regulatory agency of the State Council. Where Negotiable securities, among others, may be used as margins by pledge or any other way that has the function of performance security in accordance with law.

The form and ratio, among others, of margins collected by futures clearing institutions and clearing participants shall conform to the provisions of the futures regulatory agency of the State Council.

For the trading of a standardized option contract, the seller shall pay margins, and the buyer shall pay premiums.

The term "premiums" as mentioned in the preceding Paragraph refers to the funds paid by the buyer for purchasing a standardized option contract.

A position limit system shall be adopted for trading in futures so as to prevent the risk of excessive concentration of contract positions.

Whoever engages in hedging or any other risk management may apply for the exemption of position limit.

The administrative measures for position limit and hedging shall be developed by the futures regulatory agency of the State Council.

A management system of filing actual control relations by traders shall be adopted for trading in futures. A trader shall, in accordance with the provisions of the futures regulatory agency of the State Council, file its actual control relation with the futures business institution or trading venue for record.

The fees charged for trading in futures shall be reasonable. The charging items, charging rates and management measures shall be publicized.

No result of any trading that has been conducted in accordance with the business rules as prescribed by the futures trading venue may be altered, except for the circumstances as provided for in Paragraph 2 of Article 89 hereof.

Members of futures trading venues and traders shall report significant matters concerning trading, holding positions, margins, among other, in accordance with the provisions of the futures regulatory agency of the State Council.

No entity or individual may unlawfully use any credit fund or fiscal fund for trading in futures.

Futures business institutions, futures trading venues, futures clearing agencies, and futures service providers, among others, and their practitioners shall report discovered prohibited trading acts to the futures regulatory agency of the State Council in a timely manner.

The lawfully established venues may, upon the examination and approval of the department authorized by the State Council or of the futures regulatory agency of the State Council, organize the development of trading in derivatives.

The trading rules formulated by the venues organizing the trading in derivatives shall fairly protect the legitimate rights and interests of all the trading participants, guard against the market risks and shall be reported to the department authorized by the State Council or to the futures regulatory agency of the State Council for approval.

To conducts trading in derivatives, a financial institution shall obtain approval or confirmation in accordance with law, perform its trader suitability management obligations, and comply with the relevant regulatory provisions of the state.

Where the trading in derivatives is conducted in the form of master agreement, the master agreement, all the supplementary agreements under the master agreement and the stipulations made by both parties to the trading on various specific transactions shall together constitute a single integrated agreement between both parties to the trading and be legally binding.

The model text of a master agreement and any other contract as provided for in Article 32 hereof shall be filed for record according to the provisions of the department authorized by the State Council or of the futures regulatory agency of the State Council.

Performance security may be provided for the trading in derivatives in such means as pledge in accordance with law.

Where the trading in derivatives is conducted in the form of master agreement, the trading may be terminated as stipulated in the agreement upon the occurrence of any of the stipulated circumstances, and the profits and losses of all the transactions under the agreement shall be settled on a netting basis.

The netting settlement made in accordance with the provisions of the preceding paragraph shall not be suspended, invalidated or cancelled due to the entry of any party to the trading into bankruptcy procedures in accordance with law.

The department authorized by the State Council and the futures regulatory agency of the State Council shall establish a derivative trading report database to collect, preserve, analyze and manage the information on the subject matters, scale and counterparties of the trading in derivatives in a centralized manner, and disclose the relevant information to the market in accordance with the provisions in a timely manner. The specific measures shall be provided for by the department authorized by the State Council and the futures regulatory agency of the State Council.

Where the trading in derivatives is settled in a centralized manner by the department authorized by the State Council or by the clearing institution approved by the futures regulatory agency of the State Council as the central counterparty, the netting settlement may be terminated in accordance with law; the settlement property shall be used for settlement and delivery in priority, and shall not be seized, frozen, detained or enforced; before the settlement and delivery are completed, no one may use the said property.

The centralized settlement made in accordance with law shall not be suspended, invalidated or cancelled due to the entry of any party to the settlement into bankruptcy procedures in accordance with law.

The specific measures for regulating, supervising and administering the trading in derivatives and the relevant activities shall be provided for by the State Council in accordance with the principles hereof.

The trading in futures shall be subject to the mark-to-market system. Within the time prescribed by the futures trading venue, the futures clearing institution shall conduct the settlement for the settlement participants at the settlement price on a day; and the settlement participants shall conduct the settlement for the traders according to the settlement results of the futures clearing institution. The settlement results shall be timely notified to the settlement participants and traders on the same day.

The margins and premiums, among others, collected by futures clearing institutions and settlement participants shall be separated from their own funds and deposited in a dedicated account of the futures margin depository institutions and separately managed in accordance with the provisions of the futures regulatory agency of the State Council, and shall not be misappropriated in violation of regulations is prohibited.

Where the margins of a settlement participant fail to reach the standard prescribed in the business rules of the futures clearing institution, the futures clearing institution shall notify the settlement participant to supplement the margins or close the position voluntarily  within the prescribed time limit in accordance with the business rules. Where the settlement participant fails to supplement the margins or close the position voluntarily within the prescribed time limit, the futures clearing institution shall notify the futures trading venue to forcibly close the position.

Where the margins of a trader fail to reach the standard agreed upon between the settlement participant and the trader, the settlement participant shall notify the trader according to the agreement to supplement the margins or close the position voluntarily within the prescribed time limit; where the trader fails to supplement the margins or close the position itself within the prescribed time limit, the settlement participant shall forcibly close the position according to the agreement.

Where negotiable securities, among others, are used as margins and the futures clearing institution or settlement participant forcibly closes the position according to the provisions of the preceding two paragraphs, the negotiable securities may be disposed of.

Where a settlement participant breaches a contract in the course of settlement, the futures clearing institution shall, in accordance with the business rules, use the margin and settlement guarantee of the settlement participant as well as the risk reserve and self-owned fund of the clearing institution, among others, to complete the settlement; where the futures clearing institution completes the settlement with its risk reserve and self-owned fund, it may claim compensation from the settlement participant according to law.

Where a trader breaches a contract in the course of settlement, the settlement participant entrusted by it shall complete the settlement with the margin of the said trader as well as the risk reserve and self-owned fund of the settlement participant under the contract; where the settlement participant completes the settlement with its risk reserve and self-owned fund, it may claim compensation from the said trader according to law.

For the purpose of the present Law, the term "settlement guarantee" refers to the fund paid to the futures clearing institution by a settlement participant with its self-owned fund guarantee for performance guaranty.

The margins, premiums, settlement guarantees and risk reserves as well as other assets collected and withdrawn by a futures clearing institution according to its business rules shall be firstly used for settlement and delivery and may not be seized, frozen, detained or enforced.

Before the settlement and delivery have been completed, no one may use the margins used for performance guaranty and delivery or the delivery property entering the delivery link.

The settlement or delivery carried out according to law shall not be suspended, invalidated or cancelled as a result of the entry of any party participating in the settlement into the bankruptcy proceedings according to law.

At the expiration of a futures contract, the trader shall settle the contract that has not been closed out yet on the expiration by physical delivery or cash delivery.

Within the time specified in a standardized option contract, the contract buyer has the right to buy or sell the subject matter at the stipulated price, or settle the cash difference as agreed upon, and the contract seller shall perform the corresponding obligations as agreed upon. The exercise of a standardized option contract shall be organized by the futures clearing institution.

For physical delivery under a futures contract, the futures clearing institution shall be responsible for organizing the delivery of payment for goods, standard warehouse receipts and other property right certificates of the subject matter of the contract.

For cash delivery under a futures contract, the futures clearing institution shall transfer the profits and losses of both parties of the positions on the basis of the final settlement price.

For the purpose of the present Law, the term "standard warehouse receipt" refers to a standardized delivery certificate issued by a delivery warehouse and registered with a futures trading venue.

The physical delivery in futures trading shall be made at the delivery warehouse, delivery port as designated by the futures trading venue or at any other venue meeting the requirements of the futures trading venue. The total amount delivered may not be limited for physical delivery. Where a physical delivery is made by means of documents other than standard warehouse receipts or by any other means, the futures trading venue shall clearly prescribe the rights and obligations of all parties to the delivery.

Where a settlement participant breaches a contract in the course of delivery, the futures clearing institution has the right to dispose of the standard warehouse receipts and other property right certificates of the subject matter of the contract of the settlement participant.

Where a trader breaches a contract in the course of delivery, the settlement participant has the right to dispose of the trader's standard warehouse receipts and other property right certificates of the subject matter of the contract.

Where a futures business institution is unqualified as a settlement participant, it may entrust a settlement participant to conduct settlement on behalf of its clients. The rights and obligations relationship between a futures business institution that is unqualified as a settlement participant and a settlement participant or a trader shall be subject mutatis mutandis to the provisions in this Chapter on the rights and obligations between a settlement participant and a trader.

The term "futures trader" refers to a natural person, a legal person or an unincorporated organization that engages in trading in futures and undertakes the trading results in accordance with the present Law.

A futures trader shall entrust a futures business institution to conduct trading in futures, unless it is otherwise provided for by the futures regulatory agency of the State Council.

When providing services for a trader, a futures business institution shall, in accordance with the regulations, fully understand the basic information, property status, financial asset status, trading knowledge and experience, professional competence and other relevant information of the trader; faithfully state the important contents of the services, fully disclose trading risks; and provide the trader with services that match the said circumstances of the trader.

Any trader shall, when participating in trading in futures and accepting services, provide the authentic information as listed in the preceding paragraph according to the express requirements of the futures business institution. Where a trader refuses to provide the information or fails to provide the information as required, the futures business institution shall inform it of the consequences and refuse to provide the services as required.

A futures business institution that violates the provision of paragraph 1 of this Article shall bear corresponding liability for compensation, if the violation causes any loss to traders.

Traders may be classified into ordinary traders and professional traders according to such factors as property conditions, financial assets, trading knowledge and experiences, and professional competence. The standards for professional traders shall be developed by the futures regulatory agency of the State Council.

Where a dispute arises between an ordinary trader and a futures business institution, the futures business institution shall prove that its acts conform to the laws, administrative regulations, and provisions of the futures regulatory agency of the State Council, and are not under any misleading or fraudulent circumstance. Where the futures business institution fails to do so, it shall bear the corresponding liability for compensation.

A legal person or an unincorporated organization participating in trading in futures shall establish an internal control system and a risk control system suitable for the type, scale and purpose of its trading contracts.

No practitioner of a futures business institution, futures trading venue or futures clearing institution, any functionary of the futures regulatory agency of the State Council or the China Futures Association, or any other person that is prohibited by any law, administrative regulation, or provisions of the futures regulatory agency of the State Council from participating in trading in futures may engage in trading in futures .

A trader is entitled to inquire its entrustment records, trading records, balance of margin and other important information relating to the service it receives.

Futures business institutions, futures trading venues, futures clearing institutions, futures service providers and their functionaries shall keep the information of the traders confidential according to law, and may not illegally buy or sell, provide or make public the information of traders.

Futures business institutions, futures trading venue, futures clearing institutions, futures service providers and their functionaries may not divulge the trade secrets they have access to.

Where any dispute arises between a trader and a futures business institution, among others, both parties may apply to an industry association, among others, for mediation. A futures business institution shall not refuse an ordinary trader's request for mediation of a dispute between them over any futures business.

Where a trader initiates a futures-related civil actions for damages caused by market manipulation and insider trading, among others, if the subject matter of the action is of the same category and the persons involved in one party is large, a representative may be elected for the action according to law.

The state establishes a futures traders' protection fund. The specific measures for raising, managing and using the futures traders' protection fund shall be developed by the futures regulatory agency of the State Council, jointly with the financial department of the State Council.

The term "futures business institutions" refers to futures companies established in accordance with the Company Law of the People's Republic of China and the present Law, as well as other institutions that engage in the futures business as approved by the futures regulatory agency of the State Council.

To establish a futures company, the following conditions shall be satisfied and the approval of the futures regulatory agency of the State Council shall be obtained:

(I) Having articles of association that comply with the relevant laws and administrative regulations;

(II) The principal shareholders and actual controllers thereof have good financial conditions and good faith records, and their net assets are not lower than the standards as provided for by the futures regulatory agency of the State Council; there is no record of any major violation of laws or rules in the recent three years;

(III) The registered capital thereof is not less than 100 million yuan, and shall be the paid-in monetary capital;

(IV) The staff engaging in the futures business shall meet the conditions as provided for in the present Law, and the directors, supervisors and senior managers shall meet the corresponding conditions for holding their posts;

(V) Having a good corporate governance structure, a sound risk management system and a perfect internal control system;

(VI) Having qualified business premises, business facilities and information technology system; and

(VII) Other conditions as provided for by laws, administrative regulations and the futures regulatory agency of the State Council.

The futures regulatory agency of the State Council may raise the minimum amount of the registered capital according to the principle of prudent supervision and the risk degree of the various businesses.

The futures regulatory agency of the State Council shall, within six months as of accepting an application for establishing a futures company, make an examination according to the statutory conditions, procedures and the principle of prudent supervision, make a decision as to whether or not to approve the application, and notify the applicant of the result; and it shall explain the reasons for disapproval if the application is not approved.

A futures company shall indicate the word "futures" in its name, unless it is otherwise provided for by the futures regulatory agency of the State Council.

A futures company shall be subject to the approval of the futures regulatory agency of the State Council before handling any of the following matters:

(I) Merging, dividing, suspending business, dissolving or filing for bankruptcy;

(II) Changing the principal shareholders or the actual controllers thereof;

(III) Changing the registered capital and adjusting the equity structure;

(IV) Changing the business scope; and

(V) Other major matters as provided for by the futures regulatory agency of the State Council.

The futures regulatory agency of the State Council shall, within 20 days as of accepting the application, make a decision as to whether or not to approve the matters as mentioned in Item (III) or (V) of the preceding Paragraph of the present Article. The futures regulatory agency of the State Council shall, within 60 days as of accepting the application, make a decision as to whether or not to approve the matters as mentioned in any other Item of the preceding Paragraph of the present Article.

A futures company may conduct the following futures businesses upon approval of the futures regulatory agency of the State Council:

(I) Futures brokerage;

(II) Futures trading consulting;

(III) Futures market-making transactions; and

(IV) Other futures businesses.

A futures company engaging in the asset management business shall comply with the Law of the People's Republic of China on Securities Investment Funds and other laws and administrative regulations.

No entity or individual may, without approval of the futures regulatory agency of the State Council, establish any futures company directly or in any disguised form, conduct any futures brokerage or futures trading consulting business directly or in any disguised form, or use the word "futures", "option" or any other name that may confuse or mislead for the purpose of business.

The directors, supervisors and senior managers of a futures company shall be upright, honest and of good conduct, be familiar with the futures laws and administrative regulations, and have the business management ability as required to perform their duties. The appointment or removal of any director, supervisor or senior manager of a futures company shall be filed with the futures regulatory agency of the State Council for the record.

A person may not act as a director, supervisor or senior manager of a futures company under any of the following circumstances:

(I) Where he/she is under any of the circumstances under which he/she may not act as a director, supervisor or senior manager of a company as prescribed in the Company Law of the People's Republic of China;

(II) Where he/she was a director, supervisor or senior manager of a futures business institution, or a person-in-charge of a futures trading venue or futures clearing institution, who was removed from his/her post due to his/her violation of laws or the rules of discipline, and not more than five years have elapsed as of the date of his/her removal; or

(III) Where he/she was a certified public accountant, a lawyer or a professional of any other futures service provider, who was disqualified from his/her practice license due to his/her violation of laws or the rules of discipline, and not more than five years have elapsed as of the date of his/her practice license or qualification being revoked.

A futures business institution shall operate according to law, be diligent, honest and trustworthy. It shall establish and improve its internal control system and take effective measures to isolate the interests so as to prevent the interest conflicts between the business institution and its clients and between different clients.

A futures business institution shall handle its futures brokerage business, futures market-making business, asset management business and other relevant businesses separately instead of mixing them together.

A futures business institution shall establish and implement an anti-money laundering system according to law.

Where a futures business institution accepts the entrustment of a trader to conduct trading in futures for the trader, it shall conclude a written entrustment contract with the trader, conduct the trading in futures in its own name for the trader, and the trading results shall be assumed by the trader.

A futures business institution that engages in brokerage business may not accept the carte blanche of any trader.

Where a futures business institution that engages in asset management business accepts the entrustment of a client to make investment with the client's assets, it shall fairly treat assets of different clients managed by it and may not breach the obligations as entrusted.

No futures business institution may, in violation of provisions, provide financing or guaranty for any shareholder, actual controller or any affiliated party of any shareholder or actual controller, or provide any external guaranty in violation of provisions.

The futures business staff of a futures business institution shall be upright, honest and of good character, and have the professional ability necessary for futures business.

No futures business staff of a futures business institution may privately accept any client's entrustment to engage in trading in futures.

Where any futures business staff of a futures business institution executes the instructions of the futures business institution or violates the trading in futures rules by taking advantage of his/her position in the futures business activities, the futures business institution shall bear all the liabilities.

The futures regulatory agency of the State Council shall formulate rules on continuous business operations of futures business institutions, and prescribe the operating conditions, risk management, internal control, deposit of margins, compliance management, risk monitoring indicators, and affiliated transactions of futures business institutions and their branches. Futures business institutions shall comply with the rules on continuous business operations.

A futures business institution shall submit its business, financial, and other operation management information and materials to the futures regulatory agency of the State Council according to the provisions. The futures regulatory agency of the State Council has the authority to require the futures business institution and its principal shareholders, actual controllers, and other related parties to provide the relevant information and materials within a prescribed time limit.

The information and materials submitted or provided by a futures business institution and its principal shareholders, actual controllers and other related parties to the futures regulatory agency of the State Council shall be authentic, accurate, and complete.

Where a futures business institution is involved in a major litigation or arbitration, its shares are frozen or used as guaranty, or there occurs any other major event, it shall submit a written report to the futures regulatory agency of the State Council within five days as of the occurrence of the event.

The controlling shareholder or actual controller of the futures business institution shall cooperate with the futures business institution in performing the obligations as prescribed in the preceding paragraph.

Where a futures business institution fails to comply with the rules on continuous business operations or has operational risks, the futures regulatory agency of the State Council shall order it to make rectification within a time limit. Where the futures business institution fails to make rectification within the time limit, or its acts seriously endanger the stable operation of the futures business or impair the legitimate rights and interests of the traders, or where a futures business institution is under investigation by the futures regulatory agency of the State Council due to suspected serious violations of laws or regulations, the futures regulatory agency of the State Council may, as the case may be, take the following measures against the futures business institution:

(I) Restricting or suspending part of its businesses;

(II) Suspending the approval of new businesses;

(III) Restricting the distribution of dividends, and restricting the payment of remunerations and the provision of welfare to its directors, supervisors, and senior executives;

(IV) Restricting the transfer of property or the creation of other rights on property;

(V) Ordering it to replace its directors, supervisors, senior executives, or the persons in charge of the relevant business departments or branches, or restricting the rights thereof;

(VI) Restricting the allocation and use of the futures business institution's own funds or risk reserves;

(VII) Determining the liable directors, supervisors or senior managers as unfit; and

(VIII) Ordering the liable shareholders to transfer their shares and restricting the liable shareholders from exercising their shareholders' rights.

The futures regulatory agency of the State Council shall, within three days as of the completion of an examination of the futures business institution, lift the relevant measures against the futures business institution that complies with the relevant laws, administrative regulations, and the rules on continuous business operations upon rectification.

The futures regulatory agency of the State Council has the authority to revoke the business permit for part or all of the futures businesses of the futures business institution, and close down part or all of the branches of the futures business institution that still fail to meet the requirements of the rules on continuous business operations upon rectification, and the normal business operations of the futures business is seriously affected.

Where a futures business institution unlawfully operates or suffers material risks, which seriously disrupts the order of the futures market and damages the interests of traders, the futures regulatory agency of the State Council may order it to suspend business for rectification, designate any other institution to manage or take over it, or take other supervisory and administrative measures against it.

The futures regulatory agency of the State Council may take the following measures against the directly liable directors, supervisors, and senior executives and other directly liable persons of a futures business institution under any of the circumstances as mentioned in the preceding paragraph:

(I) Deciding and notifying the exit and entry administrative authority to prevent such persons from leaving China;

(II) Requesting the judicial authority to prohibit them from moving, transferring or disposing of their properties by any other means, or creating any other rights over their properties.

The futures regulatory agency of the State Council shall order any shareholder of a futures business institution to make rectification within a time limit and may order the shareholder to transfer its equity held in the futures business institution if the shareholder makes false capital contribution or withdraws capital contribution.

The futures regulatory agency of the State Council may restrict the shareholders' rights before the shareholder corrects its unlawful act or transfers its equity held in the futures business institution pursuant to the requirements of the preceding paragraph.

The futures regulatory agency of the State Council shall deregister the relevant business permit of a futures business institution pursuant to the law if:

(I) the business license of the futures business institution is revoked pursuant to the law;

(II) the futures business institution fails to commence business after three months of establishment without justifiable reasons, or suspends business for three consecutive months or longer without justifiable reasons after it has commenced business;

(III) the futures business institution submits a deregistration application on its own initiative; or

(IV) there are other circumstances where the administrative license shall be deregistered as provided for by the Law of the People's Republic of China on Administrative Licensing or by the futures regulatory agency of the State Council.

The futures business institution shall, before the relevant business permit is deregistered, settle the relevant futures businesses and return the margins and other assets to the traders pursuant to the law.

The futures regulatory agency of the State Council may, where it deems necessary, entrust a futures service provider to audit or appraise the financial status, internal control status, and asset value of a futures business institution. The specific measures shall be developed by the futures regulatory agency of the State Council jointly with the relevant competent authorities.

Futures business institutions are prohibited from conducting any of the following acts that harm the interests of traders:

(I) Making an undertaking to the traders that the principal of their assets will not suffer losses or that they will obtain minimum returns;

(II) Agreeing with the traders to share the profits and risks;

(III) Conducting trading in futures in violation of the entrustment of traders;

(IV) Concealing the important matters or using other improper means to entice the traders to conduct transactions; or

(V) providing trading suggestions to traders based on false or uncertain material information; and

(VI) Providing false transaction returns to traders; and

(VII) Failing to transmit the orders of traders to the futures trading venues;

(VIII) Embezzling the margins of traders;

(IX) Failing to open a margin account with the futures margin depository institution as required, or transferring or transferring the margins of traders in violation of the relevant provisions;

(X) Obtaining improper benefits or shifting risks to traders by taking advantage of the services it provides to traders; and

(XI) Other acts that harm the rights and interests of traders.

Futures trading venues shall follow the principle of giving priority to public interests, provide venues and facilities for trading in futures, organize and supervise trading in futures, maintain a fair, orderly and transparent market, and implement self-regulatory management.

The establishment, modification or dissolution of a futures trading venue shall be subject to the approval of the futures regulatory agency of the State Council.

The articles of association shall be formulated for the establishment of a futures trading venue. The formulation and modification of the articles of association of a futures trading venue shall be subject to the approval of the futures regulatory agency of the State Council.

The words "commodity exchange" or "futures exchange" shall be indicated in the name of a futures trading venue. No other entity or individual may use the name "futures exchange" or any other name that may cause confusion or misleading.

A futures exchange may adopt the organization form of membership system or company system.

The organizational structure of a membership futures exchange shall be provided for in its articles of association.

Futures exchanges shall formulate relevant business rules in accordance with laws, administrative regulations and the provisions of the futures regulatory agency of the State Council. The formulation and modification of trading rules shall be reported to the futures regulatory agency of the State Council for approval.

The business rules of a futures exchange shall embody the principle of fair protection of the legitimate rights and interests of members, traders and other parties involved in the market.

Trading in futures and relevant activities conducted in a futures exchange shall comply with the business rules formulated by the futures exchange in accordance with law. The futures exchange shall impose disciplinary sanctions or take other self-regulatory management measures against violations of its business rules.

The person-in-charge of a futures exchange shall be nominated, appointed or removed by the futures regulatory agency of the State Council.

Whoever is under any of the circumstances specified in the Company Law of the People's Republic of China under which he/she is unsuitable for acting as a director, supervisor or senior manager of a company or under either of the following circumstances shall not act as the person-in-charge of a futures exchange:

(I) It has not been five years since he/she was removed from office as a director, supervisor, or officer of a futures business institution or the person in charge of a futures trading venue or a futures clearing agency for any violation of law or discipline; or

(II) It has not been five years since he/she forfeited his/her practicing certificate or was disqualified as a certified public accountant, a lawyer, or a professional of any other futures service provider for any violation of law or discipline.

A futures trading venue shall, in accordance with the provisions hereof and the futures regulatory agency of the State Council, strengthen the risk control of trading activities and the supervision and administration of its members and its staff members, and perform the following duties according to law:

(I) Providing trading sites, facilities and services;

(II) Designing products of futures contracts and standardized option contracts, and arranging for the listing of such products;

(III) Conducting real-time monitoring and risk monitoring for trading in futures;

(IV) Conducting self-regulatory management of members, traders and futures service agencies, etc., pursuant to its articles of association and business rules;

(V) Carrying out education for traders and market cultivation; and

(VI) Other duties as stipulated by the futures regulatory agency of the State Council.

A futures trading venue shall not participate in trading in futures directly or indirectly. Without the approval of the State Council, no futures trading venue may engage in trust investment, stock investment, investment in non-self-use immovable property or other businesses irrelevant to its duties.

The revenue of a futures exchange shall be managed and utilised pursuant to the relevant provisions of the state and shall first be used to ensure the operations and improvement of the futures trading venue and facilities thereof.

A futures trading venue shall strengthen risk monitoring for trading in futures. Where an abnormality occurs, the futures trading venue may, pursuant to its business rules, take the following emergency measures separately or jointly with the futures clearing institution, and immediately report to the futures regulatory agency of the State Council:

(I) Adjusting margins;

(II) Adjusting the range of the price limits;

(III) Adjusting the standards for trading limits or position limits of members and traders;

(IV) Restricting the opening of new positions;

(V) Forcing the liquidation of positions;

(VI) Suspending trading temporarily; and

(VII) Any other emergency measures.

The futures trading venue shall cancel the emergency measures in a timely manner after the abnormality disappears.

A futures trading venue shall release real-time quotes of futures traded on the venue, prepare a futures market quotation table for each trading day, and release the same.

The rights and interests pertaining to futures trading quotations shall be vested in the futures trading venue. No entity or individual may release futures trading quotations without permission of the futures trading venue.

No futures trading venue may release price forecast information.

A futures trading venue shall fulfill its information reporting obligations pursuant to the provisions of the futures regulatory agency of the State Council.

Where an emergency affects the normal operation of trading in futures, the futures trading venue concerned may adopt the requisite measures pursuant to the provisions hereof and its business rules so as to maintain the normal order of trading in futures and the fairness of the market, and shall promptly report the case to the futures regulatory agency of the State Council.

Where any emergency as prescribed in the preceding paragraph causes any major abnormality in the result of trading in futures, and the settlement and delivery according to the trading result seriously affect the normal order of trading in futures and the market fairness, the futures trading venue may adopt measures such as cancellation of trading pursuant to its business rules, and shall promptly report to the futures regulatory agency of the State Council and make an announcement.

A futures trading venue shall not bear the civil compensation liability for the losses incurred from the measures it adopts pursuant to Articles 87 and 89 hereof, unless it has a major fault.

The term "futures clearing institution" refers to a legal person which is established pursuant to the law, provides settlement and delivery services for trading in futures, and implements self-regulatory management.

Futures clearing institutions include the futures trading venues with an internal clearing department, the independent futures clearing institutions, and the securities clearing institutions which engage in the settlement and delivery of trading in futures related to the securities business upon approval of the futures regulatory agency of the State Council.

The establishment, modification and dissolution of an independent futures clearing institution shall be subject to the approval of the futures regulatory agency of the State Council.

To establish an independent futures clearing institution, the following conditions shall be satisfied:

(I) Having a good financial status, and the minimum amount of registered capital meets the requirements of the futures regulatory agency of the State Council;

(II) Having senior management personnel with professional knowledge and experience in business operations;

(III) Having a sound governance structure, internal control system and risk control system;

(IV) Having a qualified business venue, information technology system and other facilities related to the settlement of trading in futures; and

(V) Other conditions as provided for by the futures regulatory agency of the State Council.

A futures trading venue that assumes the duties of a futures clearing institution shall satisfy the conditions as provided for in Paragraph 2 of this Article.

The futures regulatory agency of the State Council shall make an examination pursuant to the principle of prudent supervision and make a decision of approval or disapproval within six months.

A futures clearing institution, as the central counterparty, is the common counterparty of all the clearing participants, carries out netting settlement and provides centralized performance guarantee for trading in futures.

A futures clearing institution shall perform the following duties:

(I) Organizing the settlement and delivery of trading in futures;

(II) Conducting self-regulatory management for the traders, futures business institutions, futures service providers and clearing participants that are non-futures business institutions according to its articles of association and business rules;

(III) Handling the inquiry of information related to the settlement and delivery of trading in futures; and

(IV) Other duties as provided for by the futures regulatory agency of the State Council.

A futures clearing institution shall, pursuant to the provisions of the futures regulatory agency of the State Council, specify in its business rules the system of clearing participants, the system of risk control, the system of information security management, the system for handling violations and breaches, and the emergency and temporary measures. The formulation and amendment of its articles of association and business rules shall be subject to the approval of the futures regulatory agency of the State Council. Those that participate in the futures settlement shall comply with the business rules formulated by the futures clearing institution.

The business rules formulated and implemented by the futures clearing institution shall be connected and coordinated with the relevant systems of the futures trading venue.

The futures clearing institution shall establish a liquidity management system so as to guarantee the steady and sound operation of the clearing activities.

The provisions of Article 84, Paragraph 2 of Article 85, Article 86, and Paragraphs 3 and 4 of Article 88 of the present Law shall be applicable to the independent futures clearing institutions and the securities clearing institutions approved to engage in the clearing and delivery business of trading in futures .

Accounting firms, law firms, asset evaluation institutions, futures margin depository institutions, delivery warehouses, information technology service providers and other futures service providers shall be diligent and dutiful, provide services for the trading in futures and the relevant activities in accordance with the relevant business rules, and provide the relevant materials as required by the futures regulatory agency of the State Council.

Where accounting firms, law firms, assets evaluation organizations and other futures service providers issue audit reports, legal opinions or other documents upon the entrustment by futures business institutions, futures trading venues, or futures clearing institutions, they shall check and verify the authenticity, accuracy and completeness of the contents of documents and materials on which such documents are based.

Delivery warehouses shall include the delivery warehouses and the delivery factories, among others. Delivery warehouses shall meet the conditions as prescribed by the futures trading venues when providing relevant services for the delivery of trading in futures. The futures trading venues shall enter into an agreement with the delivery warehouses to specify the rights and obligations of both parties.

No delivery warehouse may commit any of the following acts:

(I) Issuing false warehouse receipts;

(II) Violating the business rules of the futures trading venues, or restricting the entry or exit of commodities in the delivery warehouse;

(III) Divulging trade secrets relating to the trading in futures;

(IV) Participating in the trading in futures in violation of the relevant provisions of the state; or

(V) Other acts in violation of the provisions of the futures regulatory agency of the State Council.

The institutions that provide information technology system services for the trading in futures and the relevant activities shall comply with the technical administrative provisions and standards relating to information security of the state and the futures industry, and go through the record-filing formalities with the futures regulatory agency of the State Council.

The futures regulatory agency of the State Council may lawfully require an information technology service provider to provide the relevant materials on information technology systems as prescribed in the preceding paragraph.

The China Futures Association ("CFA") is a self-regulatory organization of the futures industry and a social group with the status of a legal person.

All futures business institutions shall join the CFA. Futures service providers may join the CFA.

The power organ of the CFA is the general meeting of members.

The articles of association of the CFA shall be formulated by the general meeting of members and filed with the futures regulatory agency of the State Council for the record.

The CFA shall establish a council, the member of which shall be elected according to the provisions in the articles of association of the CFA.

The CFA shall perform the following duties:

(I) Formulating and implementing the self-regulatory rules of the industry, supervising and inspecting business activities of members and practices of practitioners thereof, and taking disciplinary actions or other self-regulatory measures according to the relevant provisions against any violation of laws, administrative regulations, relevant provisions of the state, or articles of association and self-regulatory rules of the CFA;

(II) Mediating the disputes between the members or between a member and a trader;

(III) Safeguarding the legitimate rights and interests of members according to law and reporting the members' suggestions and requests to the futures regulatory agency of the State Council;

(IV) Organizing vocational training for futures practitioners and developing business exchanges between members; and

(V) Educating members and futures practitioners to abide by laws, regulations and policies on futures; Organizing the development of industry good faith and establishing an incentive and restraint mechanism for good faith in the industry;

(VI) Carrying out education and protection for traders, urging members to implement the appropriateness management system for traders and conducting publicity in the futures market;

(VII) Conducting self-regulatory management on the information security work of members, and urging members to implement the relevant provisions and technical standards of the state and the industry on information security;

(VIII) Organizing members to study the development, operation and other contents of the futures industry, collecting, sorting out and releasing the futures-related information, providing member services, organizing exchanges of the industry and guiding the innovative development of the industry; and

(IX) Other duties stipulated in the articles of association of the CFA.

The futures regulatory agency of the State Council shall conduct supervision and administration over the futures market according to law in order to maintain the openness, fairness and impartiality of the futures market, prevent systematic risks, safeguard the legitimate rights and interests of traders, and promote the sound development of the futures market.

The futures regulatory agency of the State Council shall perform the following duties according to law in its supervision and administration over the futures market:

(I) Formulating rules and regulations related to the supervision and administration of the futures market, and conducting examination and approval, verification and registration according to law, and handling record-filing;

(II) Supervising and administering the listing, trading, settlement and delivery of futures products as well as other relevant activities;

(III) Supervising and administering the futures business activities of relevant market participants, including futures business institutions, futures trading venues, futures clearing institutions, futures service providers and settlement participants that are institutions other than futures business institutions;

(IV) Formulating the code of conduct for futures practitioners and supervising the implementation thereof;

(V) Supervising and inspecting the disclosure of information on trading in futures;

(VI) Safeguarding the legitimate rights and interests of traders and carrying out education for traders;

(VII) Penalizing illegal trading in futures acts;

(VIII) Monitoring, controlling, preventing and disposing of risks in the futures market;

(IX) Regulating the financial technology and information security in the futures industry;

(X) Guiding and supervising the self-discipline management activities of the CFA; and

(XI) Other duties provided for in the relevant laws and administrative regulations.

The futures regulatory agency of the State Council may set up dispatched agencies according to needs, which shall perform the supervisory and administrative duties as authorized.

The futures regulatory agency of the State Council shall perform its duties according to law and has authority to take the following measures:

(I) Conducting on-site inspections over futures business institutions, futures trading venues and futures clearing institutions, and requiring them to submit materials related to financial accounting, business activities, and internal control;

(II) Entering venues where suspected unlawful acts have occurred to conduct investigations and collect evidences;

(III) Interrogating the parties concerned and entities and individuals related to the event under investigation, and requiring them to explain the matters related to the event under investigation, or requiring them to submit the documents and materials related to the event under investigation according to the designated method;

(IV) Consulting and copying the documents and materials related to the event under investigation such as the registration of property right and the communication records;

(V) Consulting and copying the trading in futures records, financial accounting materials and other relevant documents and materials of the parties concerned and any other entity and individual related to the event under investigation, and sealing up or seizing the documents and materials that may be transferred, concealed or destroyed;

(VI) Inquiring into the margin accounts and bank accounts of the parties concerned and any other entity and individual related to the event under investigation, and other account information with the functions of payment, custody and settlement, and making copies of the relevant documents and materials; where there is evidence related to the case such as illegal funds, etc. have been or may be transferred or concealed, or where there is evidence that the important evidence has been or may be concealed, forged or destroyed, such illegal funds or important evidence may be frozen or seized upon the approval of the principal person-in-charge of the futures regulatory agency of the State Council, for a period of six months; where the period needs to be extended for special reasons, each extension shall not exceed three months, and the maximum period shall not exceed two years;

(VII) Restricting the trading of the parties to the case under investigation for up to three months with the approval of the person in charge of the futures regulatory agency of the State Council or another person in charge authorized thereby, for a period of not more than three months, when investigating the manipulation of the futures market, insider trading, or any other major violation of law; such period may be extended by another three months where the case is complicated;

(VIII) Deciding and notifying the immigration authorities to prevent suspected offenders, persons-in-charge of suspected offenders and other directly accountable personnel from leaving China pursuant to the law.

The futures regulatory agency of the State Council may adopt measures such as ordering to make correction, holding regulatory talks and issuing warning letters, among others, for the purposes of preventing futures market risks and safeguarding market order.

The futures regulatory agency of the State Council shall perform its duties pursuant to the law to carry out supervision and inspection or investigation; the number of supervision and inspection personnel and investigation personnel shall not be less than two persons, and the relevant enforcement documents for inspection, investigation and enquiry, among others, shall be shown. Where the number of supervision and inspection personnel or investigation personnel is less than two or the relevant enforcement documents are not shown, the organisation or individual subject to inspection or investigation shall have the right to refuse inspection or investigation.

The functionaries of the futures regulatory agency of the State Council shall act pursuant to the law, be devoted to their duties, fair and incorruptible, keep confidentiality of the State secrets and trade secrets of the relevant parties concerned, and shall not take advantage of the official powers to seek improper gains.

The futures regulatory agency of the State Council shall perform duties pursuant to the law, and the organisation and individual subject to inspection or investigation shall cooperate with the futures regulatory agency of the State Council, make explanation or provide the relevant documents and materials truthfully, and shall not refuse or hinder inspection or investigation or conceal any information.

The futures regulatory agency of the State Council and the relevant authorities shall establish supervision and administration coordination mechanisms such as information sharing, etc. The futures regulatory agency of the State Council shall perform duties pursuant to the law; the relevant authorities shall cooperate with the futures regulatory agency of the State Council in its supervision, inspection or investigation pursuant to the law.

Any entity or individual shall have the right to report any suspected futures-related violation of law or regulation to the futures regulatory agency of the State Council.

The futures regulatory agency of the State Council shall reward the whistleblower pursuant to the provisions if the real-name whistleblowing clue in respect of a suspected major illegal act or irregularity is verified to be true.

The futures regulatory agency of the State Council shall keep confidentiality of the whistleblower's identity information.

The futures regulatory agency of the State Council shall publicize the regulations, rules, and supervision and administration working systems formulated by it pursuant to the law.

The futures regulatory agency of the State Council shall make decisions of punishment on illegal futures acts pursuant to the investigation results pursuant to the law, and publicize such decisions pursuant to the law.

The futures regulatory agency of the State Council may decide to suspend the investigation if the party under investigation files a written application and undertakes to correct the alleged violation, compensate the traders for their losses, and eliminate the damage or adverse effects within a period approved by the futures regulatory agency of the State Council. The futures regulatory agency of the State Council may decide to terminate the investigation where the party under investigation performs the undertaking; where the party under investigation fails to perform the undertaking or falls under other circumstances stipulated by the State Council, the investigation shall be resumed. Specific measures shall be formulated by the State Council.

The futures regulatory agency of the State Council shall disclose the relevant information pursuant to the provisions when suspending or terminating an investigation.

The futures regulatory agency of the State Council shall include the information on compliance of the Law by the relevant futures market entities into the futures market integrity files pursuant to the law.

The futures regulatory agency of the State Council shall, upon discovery of an illegal futures act during the performance of its duties pursuant to the law, refer the case to the judicial authorities pursuant to the law for handling; upon discovery of a civil servant suspected of a duty-related violation or crime, the case shall be referred to the supervisory authorities pursuant to the law.

The futures regulatory agency of the State Council shall establish and improve a system for monitoring and controlling the futures market and strengthen the monitoring of the safe custody of margins through dedicated agencies.

Futures business institutions, futures trading venues, futures clearing agencies, and clearing participants that are non-futures business institutions shall set aside, manage and use risk reserves from their business revenue pursuant to the provisions of the futures regulatory agency of the State Council and the financial department of the State Council for the purpose of preventing trading and settlement risks.

Futures business institutions, futures trading venues, futures agencies, futures service providers, and clearing participants that are non-futures business institutions shall keep the materials and information related to their business operations properly pursuant to the provisions. No one may divulge, conceal, forge, tamper with, or destroy such materials and information. The information and materials of futures business institutions, futures trading venues, futures clearing agencies and clearing participants that are non-futures business institutions shall be kept for a period of not less than 20 years; and the information and materials of futures service providers shall be kept for a period of not less than 10 years.

To provide domestic entities or individuals with direct access to the trading system of the futures trading venue for trading services, an overseas futures trading venue shall apply to the futures regulatory agency of the State Council for registration, and accept the supervision and administration of the futures regulatory agency of the State Council, unless otherwise stipulated by the futures regulatory agency of the State Council.

Where the contracts on futures, options, or derivatives listed on overseas futures trading venues are settled using the contract price listed on the domestic futures trading venue, it shall comply with the rules of the futures regulatory agency of the State Council.

Unless otherwise stipulated by the State Council, a domestic entity or individual that intends to engage in overseas trading in futures shall entrust a domestic futures business organization qualified for overseas futures brokerage to do so.

Where a domestic futures business institution re-entrusts an overseas futures business organization to engage in overseas trading in futures, the overseas futures business organization shall apply to the futures regulatory agency of the State Council for registration, and accept the supervision and administration of the futures regulatory agency of the State Council, unless otherwise stipulated by the futures regulatory agency of the State Council.

To establish a representative office within the territory of the People's Republic of China, an overseas futures trading venue shall file with the futures regulatory agency of the State Council for the record.

The representative office of an overseas futures trading venue and its staff shall not engage in any business activities or engage in any business activities in a disguised form.

An overseas institution that plans to engage in marketing, promotion, or trade solicitation in the futures market within China shall obtain the approval of the futures regulatory agency of the State Council, and the relevant provisions hereof shall apply.

A domestic institution that plans to engage in marketing, promotion, or trade solicitation in the futures market within China for an overseas institution shall obtain the approval of the futures regulatory agency of the State Council.

No entity or individual may engage in marketing, promotion, or trade solicitation in the futures market in violation of the provisions of the preceding two paragraphs.

The futures regulatory agency of the State Council may establish a cooperative mechanism of supervision and administration with overseas futures regulatory authorities or join an international organization to implement cross-border supervision and administration.

The futures regulatory agency of the State Council that provides assistance at the request of an overseas futures regulatory agency shall comply with the provisions of laws and regulations of the state and the principle of equality and reciprocity, and shall not divulge state secrets or harm national interests and public interests.

The futures regulatory agency of the State Council may, pursuant to the regulatory  cooperation arrangements reached with an overseas futures regulatory agency, accept the request of an overseas futures regulatory agency, and conduct investigation and collect evidence pursuant to the duties and procedures stipulated herein. The overseas futures regulatory agency shall provide relevant case materials, and state that it is conducting an investigation into suspected violations of the local futures laws and regulations of the requesting party. No overseas futures regulatory agency may directly conduct investigation and collect evidence in the People's Republic of China.

The futures regulatory agency of the State Council and the relevant department (s) in charge of the State Council shall not provide documents and materials relating to futures business activities to the overseas regulatory agency without the consent of the futures regulatory agency of the State Council and the relevant competent department (s) of the State Council.

The futures regulatory agency of the State Council may, pursuant to the regulatory cooperation arrangements reached with an overseas futures regulatory agency, request the overseas futures regulatory agency to conduct investigation and collect evidence.

Whoever, in violation of the provisions of Article 12 hereof, manipulates the futures market or the derivatives market shall be ordered to make correction, illegal income shall be confiscated, and a fine ranging from one to ten times the amount of illegal income shall be imposed concurrently; where there is no illegal income or the amount of illegal income is less than 1 million yuan, a fine ranging from 1 million yuan to 10 million yuan shall be imposed concurrently. Where an entity manipulates the market, the person directly in charge and other directly accountable personnel shall be given a warning and be subject to a fine ranging from 500,000 yuan to 5 million yuan concurrently.

Where such manipulation of the market causes losses to traders, compensation liability shall be borne pursuant to the law.

Whoever, in violation of the provisions of Article 13 hereof, engages in insider trading shall be ordered to make correction, illegal income shall be confiscated, and a fine ranging from one to ten times the amount of illegal income shall be imposed concurrently; where there is no illegal income or the amount of illegal income is less than 500,000 yuan, a fine ranging from 500,000 yuan to 5 million yuan shall be imposed concurrently. Where an entity engages in insider trading, the person directly in charge and other directly accountable personnel shall be given a warning and be subject to a fine ranging from 200,000 yuan to 2 million yuan concurrently.

The functionaries of the futures regulatory agency of the State Council, the department (s) authorized by the State Council, futures trading venues and futures clearing institutions who engage in insider trading shall be subject to heavier penalties.

Where an act of insider trading causes losses to traders, compensation liability shall be borne pursuant to the law.

Whoever, in violation of the provisions of the first paragraph or the third paragraph of Article 16 hereof, fabricates or disseminates false or misleading information to disrupt the futures market or the derivatives market, the illegal income shall be confiscated, and a fine ranging from one to ten times the amount of illegal income shall be imposed concurrently; where there is no illegal income or the amount of illegal income is less than 200,000 yuan, a fine ranging from 200,000 yuan to 2 million yuan shall be imposed concurrently. The person directly in charge and other directly accountable personnel shall be given a warning and be subject to a fine ranging from 100,000 yuan to 1 million yuan concurrently.

Whoever, in violation of the provisions of the second paragraph of Article 16 hereof, makes false statements or provides misleading information in trading in futures or derivatives shall be ordered to make correction and be subject to a fine ranging from 200,000 yuan to 2 million yuan; where such person is a civil servant, he/she shall also be penalized pursuant to the law.

Where a communications medium and any of its staff engaging in reporting information on futures markets or derivatives markets, in violation of the provisions of the third paragraph of Article 16 hereof, engages in trading in futures or derivatives that has a conflict of interest with its job duties, the illegal income shall be confiscated, and a fine of not more than one time the amount of illegal income shall be imposed concurrently; where there is no illegal income or the amount of illegal income is less than 100,000 yuan, a fine of not more than 100,000 yuan shall be imposed concurrently.

Whoever fabricates, disseminates false information on trading in futures or derivatives, or provides misleading information in trading in futures or derivatives, which causes losses to traders, shall bear compensation liability pursuant to the law.

Whoever, in violation of the provisions of the second paragraph of Article 18 hereof, lends its own futures account or makes use of other's futures account to conduct trading in futures shall be ordered to make correction and be given a warning, and may be subject to a fine of not more than 500,000 yuan.

Whoever, in violation of the provisions of Article 21 hereof, adopts procedural trading to affect the security of a futures trading venue system or the order of normal trading shall be ordered to make correction and be subject to a fine ranging from 500,000 yuan to 5 million yuan concurrently. The person directly in charge and other directly accountable personnel shall be given a warning and be subject to a fine ranging from 100,000 yuan to 1 million yuan concurrently.

Whoever, in violation of the provisions of Article 27 hereof, fails to report relevant major matters shall be ordered to make correction and be given a warning, and may be subject to a fine of not more than 1 million yuan.

Where any person prohibited by laws, administrative regulations, or the provisions of the futures regulatory agency of the State Council from participating in trading in futures  directly or under an assumed name or in the name of others, in violation of the provisions of Article 53 hereof, he/she shall be ordered to make correction and be given a warning, his/her illegal income shall be confiscated, and a fine ranging from 50,000 yuan to 500,000 yuan shall be imposed concurrently; where such person is a civil servant, he/she shall also be penalized pursuant to the law.

Where a futures company is illegally established or conducts relevant futures business without approval, the company shall be banned, its illegal income shall be confiscated, and a fine ranging from one time to 10 times the amount of illegal income shall be imposed concurrently; where there is no illegal income or the amount of illegal income is less than 1 million yuan, a fine ranging from 1 million yuan to 10 million yuan shall be imposed. The person directly in charge and other directly accountable personnel shall be given a warning and be subject to a fine ranging from 200,000 yuan to 2 million yuan concurrently.

Where the permit for establishment of a futures company, the approval for modification of a major matter or the futures business permit for a futures business institution is obtained by submitting false application documents or any other fraudulent means, the relevant permit shall be revoked, the illegal income shall be confiscated, and a fine ranging from one time to 10 times the amount of illegal income shall be imposed concurrently; where there is no illegal income or the amount of illegal income is less than 200,000 yuan, a fine ranging from 200,000 yuan to 2 million yuan shall be imposed. The person directly in charge and other directly accountable personnel shall be given a warning and be subject to a fine ranging from 200,000 yuan to 2 million yuan concurrently.

Where a futures business institution violates Article 40, Article 62, Article 65, Article 68, Article 71 or Article 72 hereof, it shall be ordered to make correction and given a warning, its illegal income shall be confiscated, and a fine ranging from one time to 10 times the amount of illegal income shall be imposed concurrently; where there is no illegal income or the amount of illegal income is less than 200,000 yuan, a fine ranging from 200,000 yuan to 2 million yuan shall be imposed; where the case is serious, it shall be ordered to suspend business for correction or its futures business permit shall be revoked. The person directly in charge and other directly accountable personnel shall be given a warning and be subject to a fine ranging from 50,000 yuan to 500,000 yuan concurrently.

Where a futures business institution has any of the illegal circumstances stipulated in the preceding paragraph, thus causing losses to traders, it shall bear compensation liability pursuant to the law.

Where a principal shareholder, actual controller or any other affiliated party of a futures business institution violates the provisions of Article 71 hereof, penalties shall be imposed pursuant to the provisions of the first paragraph of this Article.

Where a futures business institution violates the provisions on suitability management of traders in Article 50 hereof, or violates the provisions of Article 66 hereof in engaging in brokerage business, accepts the discretionary entrustment of traders, or commits any act detrimental to the interests of traders as stipulated in Article 78 hereof, it shall be ordered to make correction and given a warning, its illegal income shall be confiscated, and a fine ranging from one time to 10 times the amount of illegal income shall be imposed concurrently; where there is no illegal income or the amount of illegal income is less than 500,000 yuan, a fine ranging from 500,000 yuan to 5 million yuan shall be imposed; where the case is serious, the relevant business permit shall be revoked. The person directly in charge and other directly accountable personnel shall be given a warning and be subject to a fine ranging from 200,000 yuan to 2 million yuan concurrently.

Where a futures business institution has any act stipulated in Article 78 hereof, thus causing losses to traders, it shall bear compensation liability pursuant to the law.

Where anyone, in violation of the provisions of Article 11, Article 80 or Article 92 hereof, unlawfully establishes a futures trading venue, a futures clearing institution or organizes trading in futures  in any other form, the illegal income shall be confiscated and a fine ranging from one time to 10 times the amount of illegal income shall be imposed concurrently; where there is no illegal income or the amount of illegal income is less than 1 million yuan, a fine ranging from 1 million yuan to 10 million yuan shall be imposed. The person directly in charge and other directly accountable personnel shall be given a warning and be subject to a fine ranging from 200,000 yuan to 2 million yuan concurrently. Any illegal establishment of a futures trading venue shall be banned by a People's Government at or above the county level.

Where anyone, in violation of Article 30 hereof, organizes trading in derivatives without approval, or where a financial institution, in violation of Article 31 hereof, conducts trading in derivatives without approval, penalties shall be imposed pursuant to the provisions of the preceding paragraph.

Where any futures trading venue or futures clearing institution violates the provisions of Article 17, Article 40, or the second paragraph of Article 85 hereof, it shall be ordered to make correction and given a warning, its illegal income shall be confiscated, and a fine ranging from one time to 10 times the amount of illegal income shall be imposed concurrently; where there is no illegal income or the amount of illegal income is less than 200,000 yuan, a fine ranging from 200,000 yuan to 2 million yuan shall be imposed; where the case is serious, it shall be ordered to suspend business for rectification. The person directly in charge and other directly accountable personnel shall be subject to a fine ranging from 50,000 yuan to 500,000 yuan.

Where any futures trading venue or futures clearing institution releasees price forecast information in violation of the provisions of the third paragraph of Article 88 hereof, it shall be ordered to make correction and given a warning, and be subject to a fine ranging from 200,000 yuan to 2 million yuan concurrently. The person directly in charge and other directly accountable personnel shall be subject to a fine ranging from 50,000 yuan to 500,000 yuan.

Where any futures service provider, in violation of the provisions of Article 98 hereof, fails to provide the relevant materials as required when providing futures service business, it shall be ordered to make correction and may be subject to a fine of less than 200,000 yuan.

Where any accounting firm, law firm, asset appraisal institution or any other futures service provider, in violation of the provisions of Article 99 hereof, fails to diligently perform its duties, or any document prepared or issued by it contains any false record, misleading statement or major omission, it shall be ordered to make correction, its business income shall be confiscated, and a fine ranging from one time to 10 times the amount of business income shall be imposed concurrently; where there is no business income or the amount of business income is less than 500,000 yuan, a fine ranging from 500,000 yuan to 5 million yuan shall be imposed. The person directly in charge and other directly accountable personnel shall be given a warning and be subject to a fine ranging from 200,000 yuan to 2 million yuan concurrently.

Where any futures service provider has any illegal act stipulated in the preceding paragraph and causes losses to others, it shall bear the liability to compensate pursuant to the law.

Where any delivery warehouse has any of the acts stipulated in Article 100 hereof, it shall be ordered to make correction and given a warning, its illegal income shall be confiscated, and a fine ranging from one time to 10 times the amount of illegal income shall be imposed concurrently; where there is no illegal income or the amount of illegal income is less than 100,000 yuan, a fine ranging from 100,000 yuan to 1 million yuan shall be imposed; where the case is serious, the futures trading venue concerned shall be ordered to suspend or cancel its qualification as a delivery warehouse. The person directly in charge and other directly accountable personnel shall be given a warning and be subject to a fine ranging from 50,000 yuan to 500,000 yuan concurrently.

Where any information technology service provider, in violation of Article 101 hereof, fails to be filed, it shall be ordered to make correction and may be subject to a fine of less than 200,000 yuan.

Where any information technology service provider, in violation of Article 101 hereof, provides services that do not comply with the technical management regulations and standards of the State and the futures industry relating to information security, it shall be ordered to make correction, its business income shall be confiscated, and a fine ranging from one time to 10 times the amount of business income shall be imposed concurrently; where there is no business income or the amount of business income is less than 500,000 yuan, a fine ranging from 500,000 yuan to 5 million yuan shall be imposed. The person directly in charge and other directly accountable personnel shall be given a warning and be subject to a fine ranging from 200,000 yuan to 2 million yuan concurrently.

Where any futures business institution, futures trading venue, futures clearing institution, or clearing participant of a non-futures business institution, in violation of Article 116 hereof, fails to withdraw, manage, or use the risk reserve as required, it shall be ordered to make correction and given a warning. The person directly in charge and other directly accountable personnel shall be given a warning and be subject to a fine ranging from 100,000 yuan to 1 million yuan concurrently.

Where any futures business institution, futures trading venue, futures clearing institution, futures service provider, or clearing participant that is a non-futures business institution, in violation of Article 117 hereof, fails to properly keep the materials and information relating to its business operations as required, it shall be ordered to make correction, given a warning, and be subject to a fine ranging from 100,000 yuan to 1 million yuan concurrently ; if it discloses, conceals, forges, tampers with or destroys relevant documents or materials, it shall be ordered to make correction, given a warning, and be subject to a fine ranging from 200,000 yuan to 2 million yuan concurrently ; if the case is serious, a fine ranging from 500,000 yuan to 5 million yuan shall be imposed, and the relevant business permit shall be suspended or revoked, or it shall be prohibited from engaging in the relevant business. The person directly in charge and other directly accountable personnel shall be given a warning and be subject to a fine ranging from 100,000 yuan to 1 million yuan concurrently.

Where any overseas futures trading venue or futures business institution, in violation of Articles 118 and 120 hereof, fails to apply to the futures regulatory agency of the State Council for registration, it shall be ordered to make correction, its illegal gains shall be confiscated, and a fine of one time to 10 times the illegal gains shall be imposed concurrently; if there are no illegal gains or the illegal gains are less than 500,000 yuan, a fine ranging from 500,000 yuan to 5 million yuan shall be imposed. The person directly in charge and other directly accountable personnel shall be given a warning and be subject to a fine ranging from 100,000 yuan to 1 million yuan concurrently.

Where any domestic entity or individual violates Paragraph 1 of Article 120 hereof, it/he shall be ordered to make correction and be given a warning, its/his illegal gains shall be confiscated, and a fine ranging from 100,000 yuan to 1 million yuan shall be imposed concurrently; if the case is serious, its/his overseas trading in futures  shall be suspended. The person directly in charge and other directly accountable personnel shall be given a warning and be subject to a fine ranging from 50,000 yuan to 500,000 yuan concurrently.

Where a representative office established by an overseas futures trading venue or any of its employees violates the provisions of Article 121 hereof by engaging in any business activity or engaging in any business activity in a disguised form, it/he shall be ordered to make correction and given a warning, its/his illegal gains shall be confiscated, and a fine ranging from one time to 10 times the illegal gains shall be imposed concurrently; where there are no illegal gains or the illegal gains are less than 500,000 yuan, a fine ranging from 500,000 yuan to 5 million yuan shall be imposed. The person directly in charge and other directly accountable personnel shall be given a warning and be subject to a fine ranging from 100,000 yuan to 1 million yuan concurrently.

Where any person, in violation of the provisions of Article 122 hereof, conducts marketing, promotion or solicitation activities within the territory, it/he shall be ordered to make correction and given a warning, its/his illegal gains shall be confiscated, and a fine ranging from one time to 10 times the illegal gains shall be imposed concurrently; where there are no illegal gains or the illegal gains are less than 500,000 yuan, a fine ranging from 500,000 yuan to 5 million yuan shall be imposed. The person directly in charge and other directly accountable personnel shall be given a warning and be subject to a fine ranging from 100,000 yuan to 1 million yuan concurrently.

Whoever refuses or obstructs the legal performance of supervisory inspection or investigation function by the futures regulatory agency of the State Council or the department authorized by the State Council and its staff members shall be ordered to take corrective action and fined not less than 100,000 yuan but not more than one million yuan, and be punished for public security administration by the public security authority in accordance with the law.

The futures regulatory agency of the State Council may, in case of any serious violation of laws, administrative regulations or the relevant provisions of the futures regulatory agency of the State Council, adopt the measure of prohibiting the relevant liable persons from access to the futures market.

For the purposes of the preceding paragraph, the term "prohibiting from access to the futures market" refers to a system whereby a person is prohibited from carrying out trading in futures, conducting futures business, or holding any post as a director, supervisor, senior manager, or person in charge of any futures business institution, futures trading venue, or futures clearing institution for a certain period of time or for life.

The administrative punishments as prescribed herein shall be decided by the futures regulatory agency of the State Council or the department authorized by the State Council according to the division of duties prescribed by the State Council, except as otherwise provided for by any law or administrative regulation.

Where any of the functionaries of the futures regulatory agency of the State Council or the department authorized by the State Council fails to perform his/her duties as prescribed in the present Law, abuses his/her power, neglects his/her duties, takes advantage of his/her post to seek any unjustifiable interests, or divulges any commercial secret of the relevant entities or individuals he/she has access to, he/she shall be subject to legal liabilities according to law.

Whoever violates the present Law, with any crime constituted, shall be subject to criminal liabilities according to law.

Where anyone shall be liable in civil damages, pay any administrative or criminal fine, and surrender illegal income for any violation hereof, the offender's property shall be first used for payment of civil damages if such property is insufficient for the payment of the aforesaid.

The present Law shall come into force on August 1, 2022.