Measures for the Administration of Futures Exchanges (2023)

Chapter I General Provisions
Article 1 These Measures are developed in accordance with the Civil Code of the People's Republic of China, the Futures and Derivatives Law of the People's Republic of China (hereinafter referred to as the “Futures and Derivatives Law”), the Company Law of the People's Republic of China, and the Regulation on the Administration of Futures Trading for the purposes of strengthening the supervision and administration of futures exchanges, clarifying the duties of futures exchanges, maintaining the order of the futures market, and promoting the vigorous and stable development of the futures market.
Article 2 These Measures shall apply to futures exchanges formed within the territory of the People's Republic of China.
Article 3 For the purposes of these Measures, “futures exchange” means a legal person that is formed in accordance with the provisions of the Futures and Derivatives Law, the Regulation on the Administration of Futures Trading, and these Measures, and performs the duties specified in the Futures and Derivatives Law, the Regulation on the Administration of Futures Trading, and these Measures, and exercises self-regulation according to its bylaws and business rules.
For the purposes of these Measures, a futures exchange shall set up an internal clearing department, which shall perform the duties of a futures clearing institution in accordance with the law and meets the conditions for a futures clearing institution.
Article 4 A futures exchange shall establish a Party organization in accordance with the Constitution of the Communist Party of China, which shall play its leading role, adhere to the general direction, control the overall situation, guarantee the implementation of policies, discuss and decide on major matters of the futures exchange as required, and guarantee and supervise the comprehensive implementation of the guidelines and policies of the Party and the state in the futures exchange.
Article 5 In organizing futures trading and related activities, a futures exchange shall follow the principle of giving priority to the public interest, and maintain fairness, order, and transparency in the market.
Article 6 The China Securities Regulatory Commission (hereinafter referred to as the “CSRC”) shall conduct supervision and administration of futures exchanges in a centralized and unified manner in accordance with the law.
Chapter II Formation, Modification, and Termination
Article 7 The formation of a futures exchange shall be subject to the approval of the CSRC. Without the approval of the CSRC, no entity or individual may form a futures trading venue or organize futures trading and relevant activities in any form.
Article 8 A futures exchange may take the form of a membership or company.
The registered capital or start-up capital of a futures exchange in the form of a membership shall be divided into equal shares to be subscribed for by its members.
A futures exchange in the form of a company shall take the form of a joint stock company.
Article 9 The name of a futures exchange shall indicate the words “commodity exchange” or “futures exchange,” among others. No other entity or individual may use the name “futures exchange” or any other name that may cause confusion or mislead others.
Article 10 A futures exchange shall perform the following duties:
(1) Providing trading places, facilities, and services.
(2) Organizing the settlement and delivery of futures trading.
(3) Developing and implementing business rules of the futures exchange.
(4) Designing futures contract and standard option contract products and arranging for the listing of futures contract and standard option contract products.
(5) Conducting the real-time monitoring and risk monitoring of futures trading.
(6) Releasing market information.
(7) Handling information inquiry services related to the settlement and delivery of futures trading.
(8) Conducting the self-regulation of its members, traders, and futures service institutions, among others, in accordance with its bylaws and business rules.
(9) Providing trader education and cultivating the market.
(10) Guaranteeing the safe and stable operation of the information technology system.
(11) Investigating and punishing regulatory violations.
(12) Performing other duties prescribed by the CSRC.
Article 11 To apply for forming a futures exchange, the applicant shall submit the following documents and materials to the CSRC:
(1) An application.
(2) The draft bylaws, trading rules, and settlement rules.
(3) The business plan of the futures exchange.
(4) The list of prospective members or shareholders.
(5) The list and resumes of candidates for the board of governors or members of the board of directors.
(6) The list and resumes of the officers to be employed.
(7) Supporting documents and explanations of the premises, equipment, and funds.
(8) Other documents and materials as required by the CSRC.
Article 12 The bylaws of a futures exchange shall indicate:
(1) the purpose of its formation and its duties;
(2) its name, address, and business place;
(3) its registered capital or start-up capital and the composition thereof;
(4) its business term;
(5) its organizational structure, duties, term of office, and rules of procedure;
(6) the selection, appointment and removal, and duties of the management personnel;
(7) its basic business rules;
(8) its risk reserve management rules;
(9) its financial accounting and internal control rules;
(10) the conditions and procedures for modification and termination, and liquidation measures;
(11) the procedures for amending the bylaws; and
(12) other matters that shall be prescribed in the bylaws.
Article 13 In addition to the matters prescribed in Article 12 of these Measures, the bylaws of a futures exchange implementing a membership system shall also indicate:
(1) membership and measures for the administration thereof;
(2) the rights and obligations of the members; and
(3) disciplinary actions against the members.
Article 14 The trading rules and settlement rules of a futures exchange shall indicate:
(1) its rules on futures trading, settlement, and delivery;
(2) its risk management rules and procedures for handling abnormal trading situations;
(3) its rules for the management and use of margin;
(4) its methods for the release of futures trading information;
(5) violations, breach of contract, and methods for the handling thereof;
(6) methods for handling trading disputes; and
(7) other matters that shall be indicated in the trading rules and settlement rules.
The trading rules and settlement rules of a futures exchange in the form of a company shall also indicate the matters specified in Article 13 of these Measures.
Article 15 Any change in the name, registered capital or start-up capital, organizational form, or equity structure of a futures exchange shall be subject to the approval of the CSRC.
Article 16 A futures exchange shall report its business combination or division to the CSRC in advance.
The business combination of a futures exchange may be effected by way of merger or consolidation, the claims and debts of all parties before the business combination shall be succeeded by the futures exchange that survives after the merger or by the newly established futures exchange.
For a futures exchange to be split up, its claims and debts shall be succeeded by the surviving futures exchange after the split-up, except as otherwise agreed by the futures exchange and the creditor or debtor.
Article 17 Where a futures exchange intends to provide online trading services, it shall report to the CSRC within 10 days after it makes such a decision.
Article 18 Without the approval of the CSRC, a futures exchange shall not establish any branch or any other futures trading venue.
Article 19 A futures exchange shall be dissolved if:
(1) the business term as specified in its bylaws expires;
(2) the members' assembly or the shareholders' meeting decides to dissolve the futures exchange; or
(3) the CSRC decides to close the futures exchange.
The dissolution of a futures exchange shall be subject to the approval of the CSRC.
Article 20 Where a futures exchange is terminated due to business combination, division, or dissolution, the CSRC shall make an announcement thereon.
If a futures exchange is to be terminated, a liquidation group shall be formed to carry out the liquidation. The liquidation plan made by the liquidation group shall be reported to the CSRC in advance.
Chapter III Organizational Structure
Section 1 Futures Exchange Implementing the Membership System
Article 21 A futures exchange implementing the membership system shall set up a members' assembly. The members' assembly shall be the power body of the futures exchange and shall consist of all members.
Article 22 The members' assembly shall exercise the following powers:
(1) Examining and approving the bylaws, trading rules, and settlement rules of the futures exchange and their draft amendments.
(2) Electing and replacing member governors.
(3) Deliberating and approving work reports of the board of governors and the general manager.
(4) Deliberating and approving financial budget plans and final account reports of the futures exchange.
(5) Deliberating the use of risk reserves of the futures exchange.
(6) Deciding to increase or reduce the registered capital or start-up capital of the futures exchange.
(7) Deciding on the business combination, division, change of organizational form, dissolution, or liquidation of the futures exchange.
(8) Deciding on other major matters proposed by the board of governors of the futures exchange.
(9) Other powers prescribed in the bylaws of the futures exchange.
Article 23 The members' assembly shall be held once a year, which shall be convened by the board of governors, and presided over by the chairman of thereof. A special members' assembly shall be held if:
(1) the number of member governors is less than two-thirds of the number prescribed in the bylaws of the futures exchange;
(2) one-third or more of the members jointly propose a special meeting;
(3) the board of governors deems it necessary; or
(4) there is any other circumstance prescribed in the bylaws of the futures exchange.
The members' assembly may be held in person, through video conference, or by other means of communication.
Article 24 When the members' assembly is to be convened, the members shall be notified of the matters to be deliberated at the meeting, the method for convening the meeting, and the time and place of the meeting ten days before the meeting is convened. No resolution may be made for any matter not listed in the notice during a special members' assembly.
Article 25 The members' assembly shall have effect only if two-thirds or more of members are present. Minutes of the meeting shall be prepared for the matters voted on and shall be signed by the governors present at the meeting.
Within 10 days after the end of the members' assembly, the futures exchange shall submit all documents of the members' assembly to the CSRC.
Article 26 A futures exchange shall set up a board of governors with each term of three years. The board of governors shall be the permanent body of the members' assembly and be responsible to the members' assembly.
Article 27 The board of governors shall exercise the following powers:
(1) Convening the members' assembly and reporting its work to the members' assembly.
(2) Drafting the bylaws, trading rules, and settlement rules of the futures exchange, and the draft amendments thereof, and submitting them to the members' assembly for examination and approval.
(3) Deliberating the financial budget plans and final account reports submitted by the general manager and submitting them to the members' assembly for approval.
(4) Deliberating the plans on the business combination, division, change of the organizational form, dissolution, or liquidation of the futures exchange, and submitting such plans to the members' assembly for approval.
(5) Deciding on the establishment of special committees.
(6) Deciding on the admission and withdrawal of members.
(7) Deciding on disciplinary actions against regulatory violations.
(8) Deciding on the change of name, domicile, or business premises of the futures exchange.
(9) Deliberating and approving the detailed rules and measures developed in accordance with the bylaws, trading rules, and settlement rules.
(10) Deliberating the use of the clearing margin.
(11) Deliberating and approving the plans on the use of risk reserves.
(12) Deliberating and approving the development plans and annual work plans of the futures exchange submitted by the general manager.
(13) Deliberating and approving the fee items and fee management measures of the futures exchange.
(14) Deliberating and approving the external investment plans of the futures exchange.
(15) Supervising the general manager's implementation of the resolutions made by the members' assembly and the board of governors.
(16) Supervising the compliance of the senior management and other employees of the futures exchange with relevant laws, administrative regulations, rules, and policies of the state, and the bylaws and business rules of the futures exchange.
(17) Organizing the auditing work of the annual financial accounting reports of the futures exchange, and deciding on the recruitment and modification of the accounting firm.
(18) Other powers prescribed by the bylaws of the futures exchange or granted by the members' assembly.
Article 28 The board of governors shall consist of member governors and non-member governors, among whom member governors shall be elected by the members' assembly and non-member governors shall be appointed by the CSRC.
Article 29 The board of governors shall have one chairman and may have one or two vice-chairmen. The appointment and removal of the chairman and vice chairman shall be nominated by the CSRC and approved by the board of governors. The chairman of the board of governors shall not concurrently serve as the general manager.
Article 30 The chairman of the board of governors shall exercise the following powers:
(1) Presiding over the members' assembly and meetings of the board of governors, and taking charge of the routine work of the board of governors.
(2) Organizing and coordinating the work of special committees.
(3) Checking the implementation of resolutions made by the board of governors and reporting to the board of governors.
(4) Other powers prescribed in the bylaws of the futures exchange or granted by the board of governors.
The vice chairman shall assist the chairman in his or her work. If the chairman is temporarily unable to perform his or her powers for any reason, the vice chairman or the governor designated by the chairman shall perform the powers of the chairman on his or her behalf.
Article 31 The meeting of the board of governors shall be convened at least once half a year. All governors shall be notified of the manner, time, and place of each meeting ten days before the meeting is convened.
A special meeting of the board of governors shall be convened if:
(1) it is proposed by one-third or more of the governors;
(2) it falls under any circumstance prescribed in the bylaws of the futures exchange; or
(3) it is proposed by the CSRC.
To convene a special meeting, the board of governors may separately determine the form and time limit for notifying the convening of the meeting.
The meeting of the board of governors may be convened in person, or through video conference, or by other means of communication.
Article 32 The quorum for a meeting of the board of governors is two-thirds or more of the governors, and its resolution shall be passed by a majority of the governors present at the meeting.
The board of governors shall, within 10 days after the end of the meeting of the board of governors, submit the resolutions made at the meeting and other meeting documents to the CSRC.
Article 33 The governors shall attend the meeting of the board of governors in person. If a governor is unable to attend the meeting due to any reason, he or she shall, in a written form, entrust another governor to attend the meeting on his or her behalf and shall indicate the scope of authorization in the power of attorney. Each governor may accept the authorization of one governor only.
The board of governors shall produce minutes of the matters voted on at the meeting, which shall be signed by the directors present at the meeting and by the clerk.
Article 34 The board of governors shall establish a risk management committee and a product listing review committee, and may, when necessary, establish other special committees responsible for supervision, trading, settlement, delivery, membership examination, disciplinary actions, mediation, finance, and technology, among others.
All special committees shall be responsible to the board of governors and their duties, term of office, composition of personnel, and other matters shall be prescribed by the board of governors.
Article 35 A futures exchange shall have one general manager and several deputy general managers. The general manager shall be appointed and removed by the CSRC. The deputy general manager shall be appointed, removed, or employed in accordance with the relevant rules of the CSRC. The term of office of the general manager is three years. The general manager is an ex officio governor.
Article 36 The general manager shall exercise the following powers:
(1) Organizing the implementation of the rules and resolutions adopted by the members' assembly and the meeting of the board of governors.
(2) Presiding over the routine work of the futures exchange.
(3) Drafting the relevant detailed rules and measures in accordance with bylaws, trading rules, and settlement rules.
(4) Deciding on the use of the clearing margin.
(5) Drafting the plans on the use of risk reserves.
(6) Drafting the development plans and annual work plans of the futures exchange and implementing such plans upon approval.
(7) Drafting the external investment plans of the futures exchange and implementing such plans upon approval.
(8) Drafting the financial budget plans and final account reports of the futures exchange.
(9) Drafting the plans on the business combination, division, change of organizational form, dissolution, or liquidation of the futures exchange.
(10) Drafting the plans on the change of the name, domicile, or business place of the futures exchange.
(11) Drafting the plans on the organizational structure of the futures exchange.
(12) Drafting the plans on the recruitment of employees of the futures exchange and offering dismissal recommendations.
(13) Drafting the plans on the salaries, benefits, and penalties of employees of the futures exchange.
(14) Deciding on major matters relating to trader education and protection.
(15) Deciding to adjust fee rates.
(16) Other powers prescribed by the bylaws of the futures exchange or granted by the board of governors.
If the general manager is temporarily unable to perform his or her powers for any reason, the deputy general manager designated by the general manager shall perform the powers of the general manager on behalf thereof.
Section 2 Futures Exchange in the Form of a Company
Article 37 A futures exchange in the form of a company shall set up a shareholders' meeting. The shareholders' meeting shall be the power body of the futures exchange and shall consist of all shareholders.
Article 38 The shareholders' meeting shall exercise the following powers:
(1) The powers prescribed in subparagraph (1) and subparagraphs (4) through (7) of Article 22 of these Measures.
(2) Electing and replacing the directors who are not representatives of the employees.
(3) Deliberating and approving work reports submitted by the board of directors and the general manager.
(4) Deciding on other major matters submitted by the board of directors of the futures exchange.
(5) Deciding on the plan on changes in the equity structure.
(6) Other powers prescribed in the bylaws of the futures exchange.
Article 39 The convening of and the rules of procedure for the shareholders' meeting shall comply with the bylaws of the futures exchange.
The futures exchange shall, within 10 days after the end of the meeting, submit all meeting documents to the CSRC.
Article 40 A futures exchange shall set up a board of directors with each term of three years.
Article 41 The board of directors shall be responsible to the shareholders' meeting and shall exercise the following powers:
(1) Convening the shareholders' meeting and reporting its work to the shareholders' meeting.
(2) Drafting the bylaws, trading rules, and settlement rules of the futures exchange, and their draft amendments and submitting them to the shareholders' meeting for examination and approval.
(3) Deliberating the financial budget plans and final account reports submitted by the general manager, and submitting them to the shareholders' meeting for approval.
(4) Deliberating the plans on the business combination, division, change of organizational form, change of equity structure, dissolution, or liquidation of the futures exchange, and submitting such plans to the shareholders' meeting for approval.
(5) Supervising the general manager's implementation of resolutions adopted at the shareholders' meeting and meetings of the board of directors.
(6) The powers prescribed in subparagraphs (5) through (14), and subparagraphs (16) and (17) of Article 27 of these Measures.
(7) Other powers prescribed in the bylaws of the futures exchange or granted by the shareholders' meeting.
Article 42 A futures exchange shall have one chairman of the board of directors and may have one or two vice-chairmen of the board of directors. The appointment and removal of the chairman and vice-chairman shall be nominated by the CSRC and approved by the board of directors. The chairman of the board of directors shall not concurrently serve as the general manager.
Article 43 The chairman of the board of directors shall exercise the following powers:
(1) Presiding over the shareholders' meeting and meetings of the board of directors, and taking charge of the routine work of the board of directors.
(2) Organizing and coordinating the work of special committees.
(3) Checking the implementation of resolutions adopted by the board of directors and reporting to the board of directors.
(4) Other powers prescribed in the bylaws of the futures exchange or granted by the board of directors.
The vice-chairman of the board of directors shall assist the chairman in his or her work. If the chairman is temporarily unable to perform his or her powers for any reason, the vice-chairman or director designated by the chairman of the board of directors shall perform the powers of the chairman on behalf thereof.
Article 44 The convening of and rules of procedure for the meetings of the board of directors shall comply with the bylaws of the futures exchange.
The board of directors shall, within 10 days after the end of a meeting of the board of directors, submit the resolutions made at the meeting and other meeting documents to the CSRC.
Article 45 The board of directors shall set up a risk management committee, a product listing review committee, and may, where necessary, set up special committees prescribed in Article 34 of these Measures. All special committees shall be responsible to the board of directors and their duties, term of office, the composition of personnel, and other matters shall be prescribed by the board of directors.
Article 46 A futures exchange may have independent directors who shall be nominated by the CSRC and approved by the shareholders' meeting.
Article 47 A futures exchange may have a secretary of the board of directors, who shall be nominated by the CSRC and approved by the board of directors.
The secretary of the board of directors shall be responsible for such matters as making preparations for the shareholders' meeting and meetings of the board of directors, preserving the documents, and managing the materials on shareholders of the futures exchange.
Article 48 A futures exchange shall have one general manager and several deputy general managers. The general manager shall be appointed and removed by the CSRC. The deputy general manager shall be appointed, removed, or employed according to the relevant rules of the CSRC. The term of office of the general manager is three years. The general manager shall be a director of the board of directors.
Article 49 The general manager shall exercise the following powers:
(1) Organizing the execution of rules and resolutions adopted at the shareholders' meeting or the meeting of the board of directors.
(2) Exercising the powers prescribed in subparagraphs (2) through (15) of Article 36 of these Measures.
(3) Other powers prescribed in the bylaws of the futures exchange or granted by the board of directors.
If the general manager is temporarily unable to perform his or her powers for any reason, the deputy general manager designated by the general manager shall perform the powers of the general manager on behalf thereof.
Chapter IV Management of Members
Article 50 The members of a futures exchange shall be incorporated or unincorporated organizations registered within the territory of the People's Republic of China.
Eligible members may become clearing participants.
Article 51 The obtainment of membership of a futures exchange shall be subject to the approval of the futures exchange.
Where a futures exchange approves or cancels the membership of any member, it shall file a report with the CSRC.
Article 52 A futures exchange shall develop measures for the management of its members, prescribing such content as the conditions and procedures for obtaining and terminating membership, as well as the supervision and management of members.
Article 53 The members of a futures exchange implementing the membership system shall enjoy the following rights:
(1) Attending the members' assembly and exercising the right to elect, the right to be elected, and the right to vote.
(2) Providing the prescribed trading, settlement, delivery, and other services in the futures exchange.
(3) Using the trading facilities provided by the futures exchange to obtain the information and services related to futures trading.
(4) Transferring membership according to the applicable provisions.
(5) Proposing, jointly with others, to convene the special members' assembly.
(6) Exercising the right to complain according to the bylaws, trading rules, and settlement rules of the futures exchange.
(7) Other rights prescribed in the bylaws of the futures exchange.
Article 54 The members of a futures exchange implementing the membership system shall perform the following obligations:
(1) Complying with the relevant laws, administrative regulations, rules, and policies of the state.
(2) Complying with the bylaws, business rules, and relevant decisions of the futures exchange.
(3) Paying all fees as required.
(4) Carrying out the resolutions of the members' assembly and the board of governors.
(5) Accepting the supervision and management of the futures exchange.
Article 55 The members of a futures exchange in the form of a company shall enjoy the following rights:
(1) Exercising the rights prescribed in subparagraphs (2) and (3) of Article 53 of these Measures.
(2) Exercising the right to complain in accordance with trading rules and settlement rules.
(3) Exercising other rights prescribed in the trading rules and settlement rules of the futures exchange.
Article 56 The members of a futures exchange in the form of a company shall perform the obligations prescribed in subparagraphs (1) through (3) and subparagraph (5) of Article 54 of these Measures.
Article 57 A futures exchange shall conduct the sampling or comprehensive inspections of the members' compliance with the business rules of the futures exchange on an annual basis, and shall submit inspection results to the CSRC.
When exercising its regulatory powers, a futures exchange may conduct the investigation and collect evidence according to the authority and procedures prescribed in the bylaws and business rules of the futures exchange, and its members, traders, foreign brokerage institutions, and futures service institutions, among others, shall cooperate.
Article 58 The adoption of the all-member settlement system or member classification settlement system by a futures exchange shall be reported to the CSRC in advance.
Article 59 All members of a futures exchange implementing the all-member settlement system have the qualifications to conduct settlement with the futures exchange.
Article 60 The members of a futures exchange implementing the all-member settlement system consist of futures-company members and non-futures-company members. Futures-company members shall provide relevant services within the business scope approved by the CSRC.
Article 61 A futures exchange implementing the all-member settlement system shall conduct settlement on behalf of its members, and its members shall conduct settlement on behalf of the clients entrusting it.
Article 62 The members of a futures exchange implementing the member classification settlement system shall consist of clearing members and non-clearing members. Clearing members have the qualifications to conduct settlement with the futures exchange. Non-clearing members do not have the qualifications to conduct settlement with the futures exchange.
The futures exchange shall conduct settlement on behalf of its clearing members, clearing members shall conduct settlement on behalf of non-clearing members, and non-clearing members shall conduct settlement on behalf of the clients entrusting them.
Article 63 Clearing members shall consist of trading clearing members, general clearing members, and special clearing members.
A general clearing member or special clearing member may conduct settlement on behalf of non-clearing members that have signed a settlement agreement with it. No trading clearing member may conduct settlement on behalf of any non-clearing member.
Article 64 A futures exchange implementing the member classification settlement system may, according to the credit status and business operations of a clearing member, limit the scope of settlement services provided by the clearing member, but shall report it to the CSRC within three days.
Chapter V Basic Business Rules
Article 65 The margin collected by a futures exchange from its clearing members for settlement and performance guarantee shall not be seized, frozen, garnished, or subjected to enforcement. The futures exchange shall open a special settlement account at a futures margin depositary institution to deposit the margin and prohibit unauthorized use.
There are two types of margin, i.e., settlement margin and trading margin. “Settlement margin” means the margin that is not occupied by the contract. “Trading margin” means the margin that is occupied by the contract.
A futures exchange adopting the member classification settlement system shall only collect margin from its clearing members.
Article 66 A futures exchange shall develop margin rules, which shall include:
(1) the rates and manner of collection of margin from the members;
(2) the minimum balance of the members' settlement margin in the special settlement account; and
(3) the measures to deal with the circumstance under which the balance of the members' settlement margin is less than the minimum balance specified by the futures exchange.
The minimum balance of the members' settlement margin shall be paid to the futures exchange by the members with their own funds.
Article 67 A futures exchange may accept the following negotiable securities as the margin:
(1) Standard warehouse receipts registered at the futures exchange.
(2) Negotiable government bonds.
(3) Shares of stocks and funds.
(4) Other negotiable securities recognized by the CSRC.
Where any negotiable securities prescribed in the preceding paragraph are used as the margin, the term thereof shall not exceed the validity period of such negotiable securities.
Article 68 A futures exchange shall develop rules for using negotiable securities as the margin, specifying the types of negotiable securities that can be used as the margin, the benchmark computation value, discount rate, and other information.
A futures exchange may, according to market conditions, adjust the benchmark computation value of negotiable securities as the margin.
Article 69 The amount of negotiable securities used as the margin shall not be higher than four times the member's actual monetary funds in the special settlement account of the futures exchange.
Article 70 The losses, fees, payment for goods, and taxes, among others, involved in futures trading shall be paid with monetary funds.
Article 71 Where a client takes negotiable securities as the margin, the clearing member shall submit the negotiable securities it receives to the futures exchange.
If a client of a non-clearing member takes negotiable securities as the margin, the non-clearing member shall submit the negotiable securities it receives to the clearing member and the clearing member shall submit such negotiable securities to the futures exchange.
If a client takes negotiable securities as the margin, the futures exchange shall truthfully record the type and quantity of negotiable securities under the trading code of the client.
If the CSRC has other provisions in this regard, such provisions shall apply.
Article 72 A futures exchange implementing the member classification settlement system shall establish a system of clearing margin. The clearing margin consists of the basic clearing margin and the variable clearing margin.
The clearing margin shall be paid to the futures exchange by clearing members with their own funds. The clearing margin shall belong to the clearing members and be used to hedge against the clearing members' default risk. The futures exchange shall manage and use the clearing margin according to the relevant provisions, and shall not misappropriate it for any other purpose.
If the futures exchange intends to make any adjustment to the rates of basic clearing margin, it shall report to the CSRC before the adjustment.
Article 73 A futures exchange shall allocate 20% of its commission income as the risk reserve, which shall be subject to separate accounting and deposited in a special account.
The CSRC may determine the size of the risk reserve based on the business size, development plan, and potential risks of the futures exchange.
Article 74 A futures exchange shall maintain sufficient risk reserve resources in such forms as risk reserves and general risk reserves to advance or make up for the losses caused or likely to be caused by force majeure, or any accident, major technical failure, major human error, or other risk event.
Article 75 A futures exchange shall establish and improve its financial management rules, and all kinds of funds and expenses collected shall be used strictly for the prescribed purposes and shall not be misappropriated for any other purpose.
A futures exchange shall make various revenue arrangements on the condition of maintaining the safe operation of its trading venues and facilities, reasonably set the items of retained profits, and make long-term capital arrangements.
Article 76 Futures trading shall be subject to a real-name account system. A futures exchange shall establish a trading code system and no trading without a specific code shall be conducted.
Article 77 A futures exchange shall establish and improve trader suitability management rules, urge its members to establish and carry out trader suitability management rules, require its members to sufficiently disclose risks when recommending products or services to traders, and shall not recommend to traders products or services unsuitable for their risk tolerance.
Article 78 A futures exchange shall establish and improve systems and mechanisms, and actively cultivate and promote the participation of industrial traders in the futures market.
A futures exchange may, under the premise of ensuring effective risk isolation and risk control, organize the provision of extended services such as warehouse receipt trading related to futures trading, and enhance the convenience for industrial traders to manage risks and allocate resources by using the futures market.
Article 79 Futures trading may be subject to a market maker system.
Where a futures exchange implements a market maker system, it shall establish and improve market maker management rules to prescribe the trading acts, rights, and obligations of market makers.
Article 80 The position limit rules and hedging management rules shall be implemented for futures trading.
Article 81 The large position reporting rules shall be implemented for futures trading. If the positions held by any member, trader, or foreign brokerage institution reach the position reporting criteria prescribed by the futures exchange, the member, trader, or foreign brokerage institution shall file a report with the futures exchange. If the trader or foreign brokerage institution fails to file a report, the relevant member shall file a report with the futures change.
The futures exchange may determine and adjust the criteria for the reporting of positions held based on market risk conditions.
Article 82 The mark-to-market system shall be implemented for futures trading for the day. A futures exchange shall conduct the netting of the accounts receivable and payable after the end of prescribed trading hours.
A futures exchange, as the central counterparty, is the common counterparty of its clearing members and shall conduct netting and provide centralized performance guarantee for futures trading.
Article 83 A futures exchange implementing the all-member clearing system shall manage the risks of its members, and its members shall manage the risks of the clients entrusting them.
A futures exchange implementing the member classification settlement system shall manage the risks of its clearing members, and its clearing members shall manage the risks of non-clearing members that have signed settlement agreements with it, and its members shall manage the risks of the clients entrusting them.
Article 84 Any member that breaches the contract in futures trading shall be held liable for the breach of contract.
Where a clearing member breaches a contract in the course of settlement, the futures exchange shall, in accordance with its business rules, complete the settlement with the margin and settlement deposits of the clearing member, as well as the futures exchange's risk reserve and funds, among others. A futures exchange that completes settlement with its risk reserve or funds, among others, may claim compensation from the clearing member in accordance with the law.
Where a trader breaches a contract in the course of settlement, the clearing member entrusted by the trader shall complete the settlement with the trader's margin and the clearing member's risk reserve and funds as agreed in the contract; and if the clearing member completes the settlement with its risk reserve and funds, the clearing member may claim compensation from the trader in accordance with the law.
Article 85 The management rules for the reporting of actual control relations shall be implemented in futures trading. “Actual control relations” means the act or fact that any entity or individual has the authority to manage, use, obtain profits from, or dispose of the futures account of another person and thus has the right to make decisions on or has a significant impact on the decisions on trading under any other futures account.
Article 86 When implementing rules for position limits, trading limits, management of abnormal trading, and reporting of large positions, among others, a futures exchange shall calculate the amount of entrustment, trading, and holding of positions on a consolidated basis with respect to futures accounts subject to actual control.
Article 87 A futures exchange shall perform its self-regulatory duties, supervise program trading activities, ensure the safety of its systems, and maintain the normal trading order of the market.
A futures exchange shall establish and improve program trading reporting rules, specify the content, methods, and time limits, among others, for reporting, and make improvements in a timely manner according to the development of program trading.
If program trading is conducted by trading orders automatically generated or given by computer programs, reporting obligations shall be fulfilled in accordance with the rules of the futures exchange.
Article 88 A futures exchange may, in accordance with its business rules, take differentiated management measures in terms of the reporting requirements, technical systems, and trading costs, among others, for program trading that reach certain standards.
Article 89 The business rules and relevant decisions of a futures exchange shall have binding force on all participants in futures trading activities.
Article 90 Where a member, trader, or foreign brokerage institution, among others, violates the business rules of the futures exchange, the futures exchange may take disciplinary actions or other self-regulatory measures, including but not limited to suspending the acceptance or handling of the relevant business, restricting the trading authority, and canceling membership.
A futures exchange shall specify in its rules the specific types of disciplinary actions, the circumstances where they apply, application procedures, and relief measures.
Against the relevant disciplinary action taken by the futures exchange, a member, trader, or foreign brokerage institution, among others, may apply for a review in accordance with the rules of the futures exchange.
Article 91 Where a futures exchange has good reasons to believe that a member, trader, or foreign brokerage institution violates the business rules thereof and if the violation is having a significant impact or is going to have a significant impact on the market, it may take the following temporary measures against that member, trader, or foreign brokerage institution to prevent the consequences of the violation from deteriorating:
(1) Restricting the investment.
(2) Restricting the withdrawal of money.
(3) Restricting the opening of a new position.
(4) Raising the rate of margin.
(5) Closing the position within a prescribed time limit.
(6) Closing the position by force.
If the futures exchange takes the measure specified in subparagraph (4), (5), or (6) of the preceding paragraph in accordance with the procedures prescribed in its business rules, it shall report to the CSRC in a timely manner after taking the aforesaid measures.
If the futures exchange takes temporary measures against any member, trader, or foreign brokerage institution, it shall notify the member, trader, or foreign brokerage institution in a manner prescribed in the business rules, and shall indicate the grounds for taking such measures.
If a futures exchange finds that any transaction is suspected of violating any law, administrative regulation, or departmental rule, it shall file a report with the CSRC in a timely manner.
When the CSRC investigates and punishes any violation of law or regulation in the futures market in accordance with the law, the futures exchange shall cooperate.
Article 92 A futures exchange shall establish and improve a risk monitoring, control, and resolution system and mechanism to monitor, control, give early warning on, guard against, and resolve market risks in accordance with the law, and maintain the safe and stable operation of the futures market.
If any abnormal circumstance in relation to futures trading occurs, such as an abnormal accumulation or dramatic escalation of market risks, the futures exchange may take the following emergency measures in accordance with its business rules and immediately report the matter to the CSRC:
(1) Adjusting the margin.
(2) Adjusting the price limits.
(3) Adjusting the trading limits or position limits for its members or traders.
(4) Restricting the opening of a new position.
(5) Closing the position by force.
(6) Temporarily suspending trading.
(7) Taking other emergency measures.
Where the futures price has continuously reached the price limits in the same direction, the futures exchange may take measures such as adjusting the range of price limits, raising the trading margin, and reducing positions according to certain principles so as to resolve the risks.
After the disappearance of an abnormal circumstance specified in paragraphs 2 and 3 of this article, the futures exchange shall cancel the emergency measures in a timely manner.
Article 93 A futures exchange shall implement a risk warning system. The futures exchange may, when it deems necessary, take one or a combination of the measures such as requiring a member, trader, or foreign brokerage institution to report the information, giving a reminder through talks, issuing a letter of risk warning, and releasing a risk warning announcement to warn against and mitigate risks.
Article 94 Where, in the course of futures trading, any of the following emergencies occurs, affecting the normal order of futures trading or market fairness, the futures exchange may take emergency measures to resolve risks, and shall report it to the CSRC in a timely manner:
(1) The trading, settlement, delivery, right exercise, or contract performance cannot proceed normally due to force majeure, or any accident, major technical failure, or major human error.
(2) A member is involved in a settlement or delivery crisis, which is having or will have a significant impact on the market.
(3) The risks have not been resolved as prescribed in paragraph 3 of Article 92 of these Measures even after the corresponding measures have been taken.
(4) Any other circumstance prescribed in the business rules of the futures exchange.
Article 95 A futures exchange shall release the following information in an appropriate manner:
(1) Real-time quotes.
(2) List of daily market information.
(3) Ranking of the volume of positions held and the trading volume.
(4) Other information specified in the business rules of the futures exchange.
If futures trading is settled by the physical delivery of commodity, the futures exchange shall also disclose the quantity of standard warehouse receipts and the warehouse capacity available.
The market information on futures trading shall include but not be limited to the contract name, contract delivery month, opening price, latest price, price change, closing price, settlement price, highest price, lowest price, trading volume, positions held, and execution price.
The rights and interests related to the market information on futures trading shall be enjoyed by the futures exchange in accordance with the law. The futures exchange shall enjoy exclusive rights to the basic information formed in market transactions and the information products generated through processing. Without the consent of the futures exchange, no entity or individual may release market information of the futures exchange or use such information for commercial purposes. No institution or individual that has been licensed to use trading information may provide such trading information to any other institution or individual without the consent of the futures exchange.
A futures exchange shall guarantee that traders have equal opportunities to obtain the trading information and other publicly disclosed information and trading opportunities in the futures market.
Article 96 A futures exchange shall prepare daily, weekly, monthly, and annual trading statements and announce them in a timely manner.
Article 97 A futures exchange shall preserve the futures trading, settlement, and delivery materials for a period of at least 20 years.
Chapter VI Administration and Supervision
Article 98 A futures exchange's development of or amendments to bylaws, trading rules, and settlement rules shall be subject to the approval of the CSRC.
Article 99 The listing of futures contract products and standard option contract products of a futures exchange shall comply with the rules of the CSRC and be legally reported by the futures exchange to the CSRC for registration.
The suspension, resumption, or termination of the listing of futures contract products and standard option contract products shall be filed with the CSRC.
Article 100 The traded products shall have economic value, and the contracts shall be difficult to be manipulated and conform to the public interest.
The products traded by physical delivery shall have sufficient quantities available for delivery, and the products traded by cash delivery shall have an open, authoritative, and fair benchmark price.
Article 101 To trade in derivatives, a futures exchange shall obtain the approval of the CSRC and comply with laws, administrative regulations, and relevant rules of the CSRC.
Article 102 A futures exchange that authorizes an overseas futures trading venue to list futures contracts, option contracts, or derivative contracts that are settled at domestic contract prices shall conduct market impact assessment, and establish information exchange arrangements with the overseas futures trading venue.
The futures exchange shall select an overseas futures trading venue in the country (or region) where the futures regulator has signed a memorandum of understanding on regulatory cooperation with the CSRC to conduct the authorized cooperation.
Article 103 A futures exchange that authorizes an overseas futures trading venue to list futures contracts, option contracts, or derivative contracts that are settled at domestic contract prices shall report to the CSRC in advance.
Article 104 A futures exchange shall develop measures for punishing violations of its business rules and shall report to the CSRC in advance.
The futures exchange shall, within the scope of duties as prescribed in the measures as mentioned in the preceding paragraph, promptly investigate and punish the regulatory violations relating to the futures business conducted by the members, traders, futures service institutions, and other participants of the futures market. If any violation is beyond the scope of duties as prescribed in the measures as mentioned in the preceding paragraph, the futures exchange shall file a report with the CSRC.
Article 105 A futures exchange that develops or amends the detailed rules for the implementation of the trading rules or settlement rules, is listed, or amends or terminates its contract shall file a report with the CSRC in advance.
Article 106 The trading settlement system and trading settlement operations of a futures exchange shall conform to the requirements for monitoring the safe custody of the futures margin and shall reflect the changes of the members' margin in a truthful, accurate, and complete manner.
Article 107 A futures exchange shall, according to the provisions of the CSRC on monitoring the safe custody of futures margin, submit the relevant information to the institution monitoring the safe custody of futures margin.
Article 108 Where a futures exchange in the form of a company intends to purchase its shares or any shareholder intends to transfer its shares or otherwise dispose of its shares in any other form, it shall report to the CSRC in advance.
Article 109 The officers of a futures exchange shall meet the requirements specified by the CSRC. Without the approval of the CSRC, the chairman or vice chairman of the board of governors, the chairman or vice chairman of the board of directors, general manager, deputy general manager, or secretary of the board of directors of a futures exchange shall not concurrently assume any position in any for-profit organization.
Without approval, any other employee or non-member governor of a futures exchange shall not concurrently hold any position in any form in any member entity of the futures exchange or any for-profit organization relating to futures trading.
Article 110 The employees of a futures exchange shall voluntarily comply with the relevant laws, administrative regulations, rules, and policies, be devoted to their duties, act with due diligence, be honest and trustworthy, and have good professional ethics.
None of the employees of a futures exchange may engage in futures trading, divulge any insider information, obtain any illegal benefit by making use of the insider information, or seek any private benefit from any member of the futures exchange, trader, foreign brokerage institution, or futures service institution.
When any employee of a futures exchange performs his or her duties and falls under any circumstance relating to the interest of himself or herself or any of his or her relatives, the employee shall report to the futures exchange and disqualify himself or herself.
Article 111 The proceeds of a futures exchange shall be managed and used in accordance with the relevant provisions of the state and shall first be used to guarantee the operation and improvement of its futures trading venue and facilities.
Article 112 A futures exchange shall perform the following obligations to report to the CSRC:
(1) Submitting the annual financial reports audited by an accounting firm in compliance with the relevant provisions within four months after the end of each year.
(2) Submitting quarterly and annual work reports on the business operations and the implementation of the relevant laws, administrative regulations, rules, and policies respectively within 15 days after the end of each quarter or within 30 days after the end of each year.
(3) Other matters prescribed by the CSRC.
Article 113 Where any of the following major matters occurs, the futures exchange shall report to the CSRC in a timely manner:
(1) It is found that any employee of the futures exchange has seriously violated or may violate the relevant laws, administrative regulations, rules, or policies of the state.
(2) The futures exchange is involved in litigation which relates to 10% or more of its net assets or which has a significant impact on its business risks.
(3) The major financial expenditures, investments, and other significant financial decisions of the futures exchange which may bring about any significant financial risk or business risk.
(4) Other matters prescribed by the CSRC.
Article 114 The CSRC may, based on market conditions, adjust the rate of margin to be charged by a futures exchange, suspend, resume, or cancel the trading of a certain futures product.
Article 115 Where the CSRC believes that any abnormal circumstance occurs in the futures market, it may take necessary risk disposal measures such as postponing the opening of market sessions, temporarily suspending the trading, and closing the market ahead of schedule.
Article 116 Where the CSRC deems it necessary, it may give a warning to the officers of a futures exchange.
Article 117 Where a local CSRC office takes the regulatory measures to deal with the risks of any member of a futures exchange, it shall be subject to the approval of the CSRC. The futures exchange shall cooperate in restricting the member from transferring funds, opening new positions, transferring positions, or closing its position by force.
Article 118 A futures exchange shall promptly pay the futures market regulatory fee according to the relevant provisions of the state.
Chapter VII Legal Liability
Article 119 Where a futures exchange fails to perform the reporting obligations as prescribed in Articles 16, 17, 51, 58, 64, 72, 91, 92, 94, 103, 104, 105, 108, 112, and 113 of these Measures, or fails to submit the relevant documents and materials in accordance with the provisions in Articles 25, 32, 39, 44, and 107 of these Measures, it shall be punished in accordance with Article 64 of the Regulation on the Administration of Futures Trading.
Article 120 A futures exchange that violates Article 97 of these Measures shall be punished in accordance with Article 144 of the Futures and Derivatives Law.
Article 121 Any employee of a futures exchange who engages in futures trading in violation of Article 110 of these Measures shall be punished in accordance with Article 131 of the Futures and Derivatives Law; and any employee of a futures exchange who engages in insider trading shall be punished in accordance with Article 126 of the Futures and Derivatives Law.
Chapter VIII Supplemental Provisions
Article 122 The futures trading in any other trading venue as approved by the CSRC shall be governed by the relevant provisions of these Measures, except it is otherwise prescribed by the CSRC.
Article 123 These Measures shall come into force on May 1, 2023, upon which the Measures for the Administration of Futures Exchanges iss