PRODUCT

Trading Rules of the Shanghai International Energy ExchangeRestated


Chapter1     General Provisions

Article 1       These Trading Rules of the Shanghai International Energy Exchange (hereinafter referred to as the “Trading Rules”)are formulated pursuant to the General Exchange Rules of the Shanghai International Energy Exchange, in order to regulate the futures trading activities, protect the legitimate rights and interests of all parties in futures trading, and maintain the orders of futures trading at the Shanghai International Energy Exchange (hereinafter referred to as the “Exchange”).

Article 2       These Trading Rules are binding on the Exchange and its Members, Overseas Special Participants (hereinafter referred to as the “OSPs”), Overseas Intermediaries and Clients.


Chapter2     Trading Seats Management

Article 3       A “trading seat” refers to the access through which a Member or an OSP places orders for execution into the Exchange’s electronic trading system for matching.

Multiple computer terminals can be connected to one trading seat through a server.

Article 4       A Member or an OSP may apply to the Exchange for the corresponding numbers of trading seats according to its business needs.

Article 5       A Member or an OSP applying for a trading seat shall meet the following criteria:

1.    satisfying the requirements of trading volume and capital set-forth by the Exchange;

2.    having necessary telecommunication facilities and funds transfer conditions at the proposed remote trading premises in compliance with the Exchange’s operational requirements for futures trading;

3.    being equipped with a stable and reliable computer system with backup systems, a telecommunication system (including telecommunication route),and appropriate telecommunication experts;

4.    having sound internal rules and remote trading management measures; and

5.    operating in good condition and having no record of default or severe rule violations.

Article 6       A Member or an OSP applying for a trading seat shall submit the following materials to the Exchange:

1.    purpose and types of the trading seat;

2.    installation address and descriptions of the trading seat;

3.    software and version information of the trading system;

4.    Client type and number of Clients; and

5.    other materials as prescribed by the Exchange.

Article 7       The Exchange shall respond to the application in writing within ten (10) trading days as of receiving the complete application materials conforming to the requirements. If the application is approved, the Exchange shall notify the Members and OSPs to test the system. If the application is not approved, the Exchange shall inform the applicant with reasons.

Article 8       Members and OSPs shall complete the trading facilities installation and system testing, and engage in the overall testing and simulation operation organized by the Exchange. A trading seat shall not be put into use until all the necessary requirements for the trading facilities installation and system testing are satisfied.

Article 9       For the trading seats granted, the applicant shall pay the trading seats fee annually. An undertaking letter of using the trading seats shall be submitted to the Exchange for the first time.

Trading seats fee collected shall not be refunded for any trading seat canceled.

Article 10     The trading seats fee standards shall be prescribed by the Exchange separately.

Article 11      The Members and the OSPs shall improve the management of trading seats and the maintenance of trading system.

Article 12     The Exchange retains the right to supervise and inspect the use of trading seats.

A Member or an OSP shall obtain the prior approval of the Exchange to replace or modify its major trading facilities and software, and to remove the trading seats from the original registered premises.

Article 13     Permission to use a trading seat shall be withdrawn under any of the following circumstances:

1.    a Member or an OSP applies to withdraw the trading seat and obtains the Exchange’s approval;

2.    a Member or an OSP subcontracts, subleases or transfers the trading seat without the approval of the Exchange;

3.    a Member or an OSP obtains confidential information through the trading system, or disrupts the trading system;

4.    a Member or an OSP fails to manage its trading seat(s) in a proper way, and is deemed ineligible to continue operating the trading seat(s);

5.    disqualification of a Member or an OSP;

6.    a Member or an OSP has serious rule violations;

7.    other circumstances prescribed by the Exchange.


Chapter3     Price and Filling of Orders

Article 14     The Exchange shall timely publish the market data including the opening price, closing price, the highest price, the lowest price, the latest price, price change, the highest bid, the lowest ask, bid volume, ask volume, settlement price, trading volume, open interest and other information regarding futures trading.

Article 15     The type of trading order includes price limit order, “fill-and-kill” order (FAK order), “fill-or-kill” order (FOK order) and other types as prescribed by the Exchange.

Article 16     A trading order on a futures contract shall only be quoted within the range of the price limits for the contract.

A maximum of five hundred(500) lots and a minimum of one (1) lot may be executed in each order, unless otherwise prescribed by the Exchange.

Article 17     Program trading shall be filed in advancewith the Exchange.

If the trading ordersplaced by Members, OSPs, Overseas Intermediaries and Clients engaging inprogram trading may influence the safety of the Exchange’s system or disruptthe normal order of futures trading, the Exchange may adopt relevantrestrictive measures.

Article 18     Trading hours of a futures contract on eachtrading day shall be managed by sessions, and announced by the Exchangeseparately when such contract is listed.

Article 19     The beginning and the end of the central auctionsession is automatically dictated by the Exchange’s trading system, anddisplayed on the computer terminals.

The central auctionsession is a five (5)-minute session prior to the market opening on eachtrading day. Bids and asks are entered into the central order book during thefirst four (4) minutes, and are matched during the last minute.

The trading price of acontract generated though the central auction is the open price. If a tradingprice is not generated from the central auction, the price of the first tradeexecuted following the central auction session shall be the open price. Theprice of the first trade is calculated according to Article 21 of these TradingRules, where the price of the previous trade executed is the close price of thelast trading day.

Article 20     The central auction session applies “trademaximization” to the orders to be filled. The price established during thecentral auction session shall match the most bids and asks. Bids higher than orasks lower than the price generated from the central auction shall all beexecuted. Bids or asks at the price generated from the central auction shall beexecuted up to the number of bids or asks, whichever is less.

In continuous tradingsession, the Exchange’s trading system will automatically match the bids andasks in order of price and time priority.

Under the circumstancewhere the price limit is reached, the matching is in order of closing positionand time priority. Closing position priority is not applicable to the close ofthe positions opened of the day.

Article 21     The new trading price is the price standingin the middle among the bid price (bp), the ask price (sp) and the price of theprevious trade executed (cp), as follows:

bp≥sp≥cp, the current trading price = sp;

bp≥cp≥sp, the current trading price = cp; or

cp≥bp≥sp, the current trading price = bp

The bid and ask matched through the trading system constitute a valid transaction, and the data thereof shall be sent through the Exchange’s trading system to the Members or/and the OSPs. The Members and the Overseas Special Brokerage Participants (hereinafter referred to as the “OSBP”) shall, upon the receipt of the transaction data,instantly notify the Clients of the completed transaction.

Article 22     The unfilled orders during the central auction session shall remain active for automatic matching in the trading session. The orders will stay valid for the whole trading day until they are filled or canceled.

Article 23     At the close of each trading day, Members and OSPs shall check the trading records through the member service system of the Exchange, and shall promptly verify such records.

Should any dispute over the accuracy of the records arises, a Member or an OSP shall submit a notice in writing to the Exchange no less than thirty (30) minutes prior to the market opening of the next trading day. In case of an emergency, a notice in writing shall be submitted to the Exchange within two (2) hours after the market opening of the next trading day. The Exchange will promptly deal with the dispute and provide feed backs thereof.

If a Member or an OSP does not raise any objections within the specified time, it shall be regarded that the Member or the OSP has acknowledged the trading records.

Article 24     The Exchange for Physical (the “EFP”) isapplicable to the previous open positions of all listed futures contracts ofthe Exchange, but not applicable to the new positions opened on the applicationday.

Article 25     The Exchange shall, before 15:00 of theapplication day, close the positions of the corresponding futures contract ofthe delivery month held by the buyer and the seller tendering the EFP, at thesettlement price of the trading day immediately before the application day forthe corresponding contract of the delivery month.

Article 26     The listing price for a new contract isdetermined by the Exchange and shall be released in advance of the first day oftrading. The price limit for such contract on its first trading day shall bedetermined on the basis of the listing price.

Article 27     The price limit for a new contract on itsfirst trading day shall be twice the price limit stipulated by the contractspecifications.

If trades are executed onthe first trading day, the price limit shall revert to its regular price limitas set forth in the contract specifications and the settlement price on thefirst trading day shall be determined pursuant to the provisions provided inthe Clearing Rules of the Shanghai International Energy Exchange.

If there is no tradeexecuted on the first trading day, the price limit of the next trading dayshall remain twice the price limit stipulated by the contract specifications,and the settlement price on the first trading day shall be determined pursuantto the provisions provided in the Clearing Rules of the Shanghai InternationalEnergy Exchange. When applying such provisions, the listing price of a newcontract on the first trading day shall be deemed as the settlement price ofthe previous trading day of such a contract.

Article 28     If more than 10% of trading seats withvalid connections cannot book deals due to the malfunction of trading systemsand communication systems, etc., the Exchange shall suspend the trading untilthe malfunction is rectified.

The number of tradingseats that cannot book deals shall be calculated by using the maximum number oftrading seats with valid connections within the half hour after the marketopening of the previous trading day minus the number of current connectedtrading seats. The number of trading seats with valid connections refers to themaximum number of trading seats with valid connections within the half hourafter the market opening of the previous trading day.

Article 29     The Exchange may adjust the time of openingand closing for the continuous trading session, or suspend it if, before theopening of the continuous trading session, abnormal circumstances are reportedthrough the member service system, more than 30% of Members and OSPs registeredto participate in continuous trading fail to complete clearing or the initializationof the trading system, or in other situations as deemed necessary by theExchange.


Chapter4     Trading Code

Article 30     The Exchange shall implement the tradingcode.

Trading codes areclassified into trading codes for Non-Futures Firm Members (hereinafterreferred to as the “Non-FF Members”), trading code for Overseas SpecialNon-Brokerage Participants (hereinafter referred to as the “OSNBP”) and tradingcode for Clients, unless otherwise prescribed by the Exchange.

Each Client may opentrading accounts with different Futures Firm Members (hereinafter referred toas the “FF Members”), OSBPs, Overseas Intermediaries or other institutions(hereinafter collectively referred to as the “account opening institutions”).Account opening institutions are not allowed to aggregate or net multi-Clients’positions.

Article 31     Account opening institutions shall conducttrading code application and other account opening formalities for Clients inaccordance with the relevant rules of the China Securities RegulatoryCommission (hereinafter referred to as the “CSRC”), the China Futures MarketMonitoring Center (hereinafter referred to as the “CFMMC”) and the Exchange.

Securities companies,fund management companies, trust companies, banks and other financial institutions,social security companies and other special institutional clients who manageassets under segregated accounts may apply for a trading code in accordancewith the relevant rules of the CFMMC pursuant to the laws, regulations, rulesand other relevant provisions.

Article 32    An account opening institution shall sign a futures brokerage contract with each of itsClients. Clients may place trading orders with clear    instructions and complete information through writtenauthorization, telephone, internet or any other means prescribed by the CSRC.

Article 33     After receiving the account openingapplication materials of a Client forwarded by the CFMMC, the Exchange shallallocate, assign and manage the Client’s trading code, and report theprocessing results to the account opening institution via the CFMMC.

After receiving theaccount opening application materials of a Non-FF Member and/or an OSNBP, theExchange shall allocate, assign and manage the trading code of the Non-FFMember and/or the OSNBP, and report to them the processing results,respectively.

Article 34     The trading account shall not be openedduring continuous trading hours.

Article 35     The Exchange may revoke the trading code ofa Non-FF Member, an OSNBP or a Client if any of the following condition occurs:

1.    materials presented are false;

2.    an FF Member or an OSBP applies for cancellation of trading codesof its clients and there are no open positions under such trading codes;

3.    a Non-FF Member or an OSNBP applies for cancellation of itstrading code, and there are no open positions under such trading code;

4.    be imposed a ban for participating in a securities market orfutures market by the CSRC;

5.    be declared as “persona non grata to the market” by the Exchange;

6.    other circumstances prescribed by the Exchange.

Article 36     An account opening institution may berequired by the Exchange to liquidate the positions within a specified timeperiod if its Clients, or it assists its Clients to, submit false materials aspart of the account opening and trading code application. A Non-FF Member or anOSNBP may be required by the Exchange to liquidate the positions within aspecified time period, if it submits false materials for account opening andtrading code application. The trading code shall be cancelled following theliquidation of the positions, and additional sanctions shall be imposed inaccordance with the Enforcement Rules of the Shanghai International EnergyExchange.


Chapter5     Hedge Trading

Article 37     Hedge trading quota is classified into hedgetrading position quota for regular months (hereinafter referred to as the“hedging quota for regular months”) and hedge trading position quota for nearbydelivery months (hereinafter referred to as the “hedging quota for nearbydelivery months”). Hedging quota for regular months is classified into longhedging quota for regular months and short hedging quota for regular months.Hedging quota for nearby delivery months is classified into long hedging quotafor nearby delivery months and short hedging quota for nearby delivery months.

The regular months andnearby delivery months of a futures contract, as well as its quota applicationtime are prescribed in the chapter of these Trading Rules regarding futurescontracts of the listed product.

Article 38     Hedging quota for regular months andhedging quota for nearby delivery months of each contract of the listedproducts shall be approved by the Exchange.

Clients shall apply totheir account opening institutions for the hedging quota, and the accountopening institutions shall apply to the Exchange after verification inaccordance with relevant provisions. Non-FF Members and OSNBPs shall directlyapply to the Exchange for the hedging quota.

Article 39     A Non-FF Member, an OSNBP or a Client shallprovide the following materials to apply for the hedging quota for regularmonths in accordance with the contract:

1.    an Application (Approval) Form of Hedging Quota for RegularMonths, including applicant’s basic information, contracts applied, hedgingquota applied for regular months and other information;

2.    a copy of the business license, a certificate of incorporation,or other documents which may prove the applicant’s business scope;

3.    business performance of physical commodities in the previous yearor the latest audited annual financial report;

4.    a business plan of physical commodities for the current year orthe following year, and any purchase and sale contracts or other validcertificates related to the application for hedging;

5.    a hedging strategy, including analyses of the source of risks andhedging objectives;

6.    hedging management rules, if the applicant is a Non-FF Member oran OSNBP;

7.    other materials required by the Exchange.

A Non-FF Member, an OSNBPor a Client may apply for hedging quota for regular months for multiplecontracts once at a time.

Article 40     The Exchange shall approve the hedgingquota for regular months of an applicant based on whether or not, the subjectis competent, the real hedging needs exist, and the hedging products, thepositions held, required trading volumes and the hedging period match theproduction and operation scale, historic operational conditions, financialconditions and other related factors. Hedging quotas for regular months shallnot exceed the quota applied by the applicant.

Article 41     A Non-FF Member, an OSNBP or a Client whichneeds to adjust the hedging quota for regular months shall timely submit anapplication for adjustment and provide supporting materials.

Article 42     A Non-FF Member, an OSNBP or a Client,applying for hedging quota for the nearby delivery months, may apply for thequota of certain contract(s) and submit the following materials in accordancewith the contract:

1.    an Application (Approval) Form of Hedging Quota for NearbyDelivery Months, including the applicant’s basic information, the contractsapplied, the hedging quota applied for nearby delivery months, etc.;

2.    a copy of business license, a certificate of incorporation, orother documents which may prove the applicant’s business scope;

3.    relevant materials which can prove the authenticity of thehedging needs, including the production plan for the current year or theprevious year, warrants for physical commodities, processing orders, purchaseand sale contracts, purchase and sale invoices, or other valid certificates ofthe ownership of physical commodities corresponding to the application quota;

4.    hedging management rules, if the applicant is a Non-FF Member, oran OSNBP; and

5.    other materials required by the Exchange.

If the above materialshave been submitted to the Exchange and no change occurs thereafter, there isno need to re-submit the materials.

Article 43     The Exchange shall approve the hedgingquota for nearby delivery months based on factors such as the positions held, thetrading volumes, the operational conditions of physical commodities, thepositions of the corresponding futures contract, stocks of the deliverablecommodities of the Exchange, and whether or not the prices of futures and itsunderlying physical commodities have deviated.

The aggregate hedgingquota for nearby delivery months for each contract month throughout the yearshall not exceed the amount of production capacity or the production plan forthe current year, or the business volume of the previous year.

Article 44     Upon receiving all the applicationmaterials for hedging quota, the Exchange shall, within five (5) trading days,review the application and make a decision based on the following scenarios:

1.    The Exchange shall approve the application if the hedgingrequirements are satisfied, and notify the applicant of the result;

2.    The Exchange shall disapprove the application if the hedgingrequirements are not satisfied, and notify the applicant of the result;

3.    The Exchange shall request additional supporting documents fromthe applicant if the application materials are insufficient.

Article 45     After obtaining the hedging quota, a Non-FFMember, an OSNBP or a Client may open positions before the market closes on thethird trading day prior to the last trading day of the contract related tohedging. If the positions are not opened by the prescribed deadline, it isdeemed a waiver of the hedging quota.

Article 46     For those who do not apply for the hedgingquota for nearby delivery months as the nearby delivery months approach, theExchange shall take the lower level between the hedging quota in regular monthsand the general position limit of such listed product in nearby delivery monthsas the hedging quota for nearby delivery months.

Integer multipleadjustments to hedging positions of relevant products for nearby deliverymonths shall be implemented by reference to the method of integer multipleadjustments to general positions.

Article 47     If the hedging positions of a Non-FFMember, an OSNBP or a Client exceed the approved quota, the Non-FF Member, theOSNBP or the Client shall make adjustments on its own during the first sessionof trading hours on the next trading day. If the adjustments are not madewithin the prescribed time or the requirements remain unsatisfied even afteradjustments, the Exchange may implement forced position liquidation.

Article 48     The Exchange may investigate and supervise theproduction and operational conditions, credit profile and trading activities inthe futures and physical markets provided by hedging applicants, and theapplicants shall assist and cooperate with the Exchange during theinvestigation and supervision.

Article 49     The Exchange shall supervise the usage ofhedging quota.

TheExchange may adjust the hedging quota of a Non-FF Member, an OSNBP or a Clientbased on the market condition, and the production and operational conditions ofthe hedging applicant.

The Exchange may requirea Non-FF Member, an OSNBP or a Client to report the futures and physicalstrading activities, and provide supplementary supporting materials for theobtained hedging quota based on the futures and physical markets and the openinterest held in the contracts.

Article 50     If a Non-FF Member, an OSNBP or a Clienthas material change in its production and operational conditions, etc. that mayaffect the hedging quotas, it shall report to the Exchange without delay.

Article 51     If a Non-FF Member, an OSNBP or a Clientfrequently opens and closes positions within the hedging quota, or uses theobtained quota to affect or attempt to affect market prices, the Exchange mayadopt the following measures depending on the severity of the situation: givingverbal alert, warning letter, adjusting or cancelling the hedging quota,restricting position opening, ordering position liquidation to be conductedwithin a specified period, implementing forced position liquidation, and anyother actions deemed necessary by the Exchange.

Article 52     If a Member, an OSP, an OverseasIntermediary or a Client engages in any fraud or violation of the Exchange’srules when applying for hedging quota or conducting hedging activities, theExchange may dismiss the application, adjust or cancel the hedging quota,convert the hedging positions to general positions, or implement forced positionliquidation, and impose other sanctions according to the Enforcement Rules ofthe Shanghai International Energy Exchange.

Article 53     The Exchange may formulate the method ofcollecting margins and transaction fees for hedging positions.


Chapter6     Arbitrage Trading

Article 54     Arbitrage trading is classified into calendarspread arbitrage and cross-product arbitrage. The product portfolio forcross-product arbitrage will be announced by the Exchange separately.

Article 55     If the quota for general positions cannotsatisfy the arbitrage requirements, a Non-FF Member, an OSNBP or a Client mayapply for arbitrage quota.

Arbitrage quota isclassified into arbitrage trading position quota for regular months(hereinafter referred to as the “arbitrage quota for regular months”) andarbitrage trading position quota for nearby delivery months (hereinafterreferred to as the “arbitrage quota for nearby delivery months”).

The arbitrage quota forregular months applies to all the futures contracts of the applied products inregular months, but cannot be converted to the arbitrage quota for nearbydelivery months.

Article 56     Clients shall apply to their accountopening institutions for arbitrage quota. The account opening institutionsshall, according to relevant provisions, apply to the Exchange afterverification. Non-FF Members and OSNBPs shall directly apply to the Exchangefor arbitrage quota.

Article 57     A Non-FF Member, an OSNBP or a Client mayapply for arbitrage quota for the regular months of certain listed product(s)and submit the following materials:

1.    an Application (approval) Form of Arbitrage Quota for RegularMonths;

2.    arbitrage trading strategies, including the description of fundsource and size, calendar spread arbitrage or cross-products arbitrage and anyother relevant factors; and

3.    other materials required by the Exchange.

Article 58     The Exchange shall determine the arbitrage quotafor regular months based on the market condition, applicant’s credit profile,trading history, usage of arbitrage trading positions and any other relevantfactors.

Article 59     A Non-FF Member, an OSNBP or a Client mayapply for arbitrage quota for nearby delivery months of certain contract(s) andsubmit the following materials:

1.    an Application (Approval) Form of Arbitrage Quota for NearbyDelivery Months;

2.    arbitrage trading strategies, including the description of fundsource and size, calendar spread arbitrage or cross-products arbitrage,arrangement for position opening and reduction, intention of delivery and any otherrelevant factors;

3.    price deviation analyses for applied contract(s); and

4.    other materials required by the Exchange.

Article 60     The Exchange shall determine the arbitrage quotafor nearby delivery months based on the market condition, applicant’s creditprofile, trading history, usage of arbitrage trading positions, amount ofdeliverable commodities, whether price differences of applied contracts aredeviated and any other relevant factors.

Article 61     Upon receiving all the applicationmaterials for arbitrage quota, the Exchange shall, within five (5) tradingdays, review the application and make a decision based on the followingscenarios:

1.    The Exchange shall approve the application if the arbitragetrading requirements are satisfied, and notify the applicant of the result;

2.    The Exchange shall disapprove the application if the arbitragetrading requirements are not satisfied, and notify the applicant of the result;

3.    The Exchange shall request additional supporting documents fromthe applicant if the application materials are insufficient.

Article 62     If a Non-FF Member, an OSNBP or a Clientneeds to adjust the arbitrage quota, it shall submit an application ofadjustment to the Exchange along with supporting documents without delay. Ifthere is material change in its operational conditions, it shall timely reportto the Exchange.

Article 63     The Exchange may adjust the arbitrage quotaof a Non-FF Member, an OSNBP or a Client based on the market condition.

Article 64     If the general positions and the arbitragetrading positions of a Non-FF Member, an OSNBP or a Client accumulativelyexceed the sum of the general position limit for the futures contracts indifferent periods and the approved arbitrage quota of the same period, theNon-FF Member, the OSNBP or the Client shall make adjustments on their ownduring the first session of trading hours on the next trading day; if theadjustments are not made within the prescribed time or the requirements arestill not satisfied even after adjustments, the Exchange may implement forcedposition liquidation.

Article 65     The Exchange shall supervise the usage ofthe obtained arbitrage quota by a Non-FF Member, an OSNBP or a Client.

If a Member, an OSP, anOverseas Intermediary or a Client engages in any fraud or violation of laws,regulations and the Exchange’s rules when applying for arbitrage quota orconducting arbitrage activities, the Exchange may dismiss the application,adjust or cancel the arbitrage quota, or if necessary, take measures such asrestricting position opening, ordering position liquidation to be conductedwithin a specified period, implementing forced position liquidation and imposeother sanctions according to the Enforcement Rules of the ShanghaiInternational Energy Exchange.

Article 66     If a Non-FF Member, an OSNBP or a Clientuses the approved arbitrage quota to affect or attempt to affect market prices,the Exchange may adopt the following measures depending on the severity of thesituation: giving verbal alert, warning letter, adjusting or cancelling thearbitrage quota, or if necessary, restricting position opening, orderingposition liquidation to be conducted within a specified period, implementingposition liquidation and imposing other sanctions according to the EnforcementRules of the Shanghai International Energy Exchange.

Article 67     The Exchange may formulate the methods forcollecting margins and transaction fees for arbitrage trading positions.


Chapter7     Hedge Trading and Arbitrage Tradingof Crude Oil Futures Contracts

Article 68     The regular months regarding the hedgingand arbitrage trading positions of a crude oil futures contract shall be theperiod from the listing day of the contract to the last trading day in thethird month prior to the delivery month, while the nearby delivery months arethe second and the first months prior to the delivery month.

Article 69     The application for hedging quota andarbitrage quota for regular delivery months of a crude oil futures contractshall be submitted during the period from the listing day of the contract tothe last trading day of the third month prior to the delivery month of thecontract. The Exchange does not accept any applications beyond such period.

The application for hedgingquota and arbitrage quota for nearby delivery months of a crude oil futurescontract shall be submitted during the period from the first trading day of thefourth month prior to the delivery month to the last trading day of the secondmonth prior to the delivery month of the contract. The Exchange does not acceptany applications beyond such period.

Article 70     The hedging quota for nearby deliverymonths may be repeatedly used in the second month prior to the delivery month,but cannot be repeatedly used from the first day of the first month prior tothe delivery month.


Chapter8     Hedge Trading and Arbitrage Tradingof Low Sulfur Fuel Oil Futures Contracts

Article 71     With respect to hedging and arbitragetrading positions in a low sulfur fuel oil futures contract, the regular monthsare the period from the listing day of the contract to the last trading day ofthe third month prior to the delivery month; the nearby delivery months are thesecond month prior to the delivery month and the month prior to the deliverymonth.

Article 72     The application for hedging quota forregular months of a low sulfur fuel oil futures contract shall be submittedbetween the listing day of the contract and the last trading day of the thirdmonth prior to the delivery month of the contract. Late application will not beaccepted.

The application forhedging quota for nearby delivery months of a low sulfur fuel oil futurescontract shall be submitted between the first trading day of the fourth monthprior to the delivery month of the contract and the last trading day of thesecond month prior to the delivery month of the contract. The application forarbitrage quota for nearby delivery months of a low sulfur fuel oil futurescontract shall be submitted between the first trading day of the third monthprior to the delivery month of the contract and the last trading day of thesecond month prior to the delivery month of the contract. Late application willnot be accepted.

Article 73     The hedging quota for nearby deliverymonths of a low sulfur fuel oil futures contract may be repeatedly used in thesecond month prior to the delivery month, but cannot be repeatedly used fromthe first trading day of the month prior to the delivery month.


Chapter9     Hedge Trading and Arbitrage Tradingof TSR 20 Futures Contracts

Article 74     With respect to hedging and arbitragetrading positions in a TSR 20 futures contract, the regular months are theperiod from the listing day of the contract to the last trading day of thesecond month prior to the delivery month; the nearby delivery months are themonth prior to the delivery month and the delivery month.

Article 75     The application for hedging quota forregular months of a TSR 20 futures contract shall be submitted between thelisting day of the contract and the last trading day of the second month priorto the delivery month of the contract. Late application will not be accepted.

The application forhedging quota for nearby delivery months of a TSR 20 futures contract shall besubmitted between the first trading day of the third month prior to thedelivery month of the contract and the last trading day of the month prior tothe delivery month of the contract. The application for arbitrage quota fornearby delivery months of a TSR 20 futures contract shall be submitted betweenthe first trading day of the second month prior to the delivery month of thecontract and the last trading day of the month prior to the delivery month ofthe contract. Late application will not be accepted.

Article 76     The hedging quota for nearby deliverymonths of a TSR 20 futures contract may be repeatedly used in the month priorto the delivery month, but cannot be repeatedly used from the first trading dayof the delivery month.


Chapter10   Hedge Trading and Arbitrage Tradingof Copper Cathode Futures Contracts

Article 77     With respect to hedging and arbitragetrading positions in a copper cathode futures contract, the regular months are theperiod from the listing day of the contract to the last trading day of thesecond month prior to the delivery month; the nearby delivery months are themonth prior to the delivery month and the delivery month.

Article 78     The application for hedging quota forregular months of a copper cathode futures contract shall be submitted betweenthe listing day of the contract and the last trading day of the second month priorto the delivery month of the contract. Late application will not be accepted.

The application forhedging quota for nearby delivery months of a copper cathode futures contractshall be submitted between the first trading day of the third month prior tothe delivery month of the contract and the last trading day of the month priorto the delivery month of the contract. The application for arbitrage quota fornearby delivery months of a copper cathode futures contract shall be submittedbetween the first trading day of the second month prior to the delivery monthof the contract and the last trading day of the month prior to the deliverymonth of the contract. Late application will not be accepted.

Article 79     The hedging quota for nearby deliverymonths of a copper cathode futures contract may be repeatedly used in the monthprior to the delivery month, but cannot be repeatedly used from the firsttrading day of the delivery month.


Chapter11   Miscellaneous

Article 80     The following terms shall have the followingdefinitions:

1.    “remote trading”

A trading method by whichMembers and OSPs directly place trading orders for matching from their businesspremises through the telecommunication system connected to the Exchange’scomputer trading system.

2.    “program trading”

A trading method by whichtrading orders are automatically signaled or placed through establishedcomputerized trading models with the functions of market analysis, riskmanagement, etc.

3.    “the first session of trading hours”

Day trading hours from9:00 a.m. to 10:15 a.m. of the current trading day. If continuous trading hoursof the listed products are adopted, the first session of trading hours refersto the period from the beginning of continuous trading hours of the previoustrading day to 10:15 a.m. of the current trading day, unless otherwiseprescribed by the Exchange.

4.    “the highest price”

The highest transactionprice among the transaction prices of a certain futures contract during aspecified period of time.

5.    “the lowest price”

The lowest transactionprice among the transaction prices of a certain futures contract during aspecified period of time.

6.    “the last price”

The latest transactionprice during the trading period of a certain futures contract of a trading day.

7.    “price change”

The difference betweenthe last price of a trade on a futures contract of a trading day and thesettlement price of the previous trading day.

8.    “the highest bid”

The current highest quoteplaced by a buyer for a futures contract during a trading day.

9.    “the lowest ask”

The current lowest quoteplaced by a seller for a futures contract during a trading day.

10.  “bid volume”

The total of unfilled bidsat the highest bid price remained in the Exchange’s trading system of a futurescontract on a trading day.

11.  “ask volume”

The total of unfilled asksat the lowest ask price remained in the Exchange’s trading system of a futurescontract on a trading day.

12.  “trading volume”

The volume of all filledorders on either long or short side of a certain futures contract of a tradingday.

13.  “open interest”

The volume of open positions in either long or short trades.

14.  “calendar spread arbitrage”

Arbitrage trading among different contracts of the same product.

15.  “cross-product arbitrage”

Arbitrage trading among contracts of different products.

Article 81     Violations of these Trading Rules shall be subject to the sanctions provided in the Enforcement Rules of the Shanghai International Energy Exchange.

Article 82     The Exchange reserves the right to interpret these Trading Rules.

Article 83     These Trading Rules shall take effective as of November 11, 2020.