Trading Rules of Dalian Commodity Exchange
Chapter I General Provisions
Article 1 These Rules are formulated pursuant to the applicable rules, regulations and laws of the State and the Bylaws of Dalian Commodity Exchange for the purposes of standardizing the futures trading and protecting the lawful rights and interests of the parties to the futures trading and the interests of the social public.
Article 2 Dalian Commodity Exchange (the “Exchange”) shall organize, under the principle of openness, fairness, impartiality and good faith, the futures trading approved by the China Securities Regulatory Commission (the “CSRC”).
Article 3 These Rules shall be applicable to any and all trading matters organized by the Exchange. The Exchange, its Members, the overseas brokers, the clients, the designated delivery warehouses and the designated futures margin depositary banks, other participants in the futures market and the staff of the related units shall comply with these Rules.
The clients stated in the preceding paragraph shall include both the clients of the Members and the clients of the overseas brokers.
Chapter II Trading Business
Article 32 Trading business shall refer to the trading matters which are carried out by taking the publicly centralized trading manner or any other manner approved by the CSRC and taking the futures contracts or option contracts as the trading underlyings..
Article 33 The trading price of the futures contract shall refer to the VAT-inclusive price of the commodity on par deliverable under the futures contract at the delivery warehouse on par, except otherwise prescribed by the Exchange.
Article 34 The commodity on par deliverable, the substitute and the premium and discount under the futures contract shall be clearly described by the Exchange in the futures contract or the detailed implementation rules.
Article 35 The premium and discount standards for the deliveries of the delivery warehouses on par and other delivery warehouses shall be separately prescribed by the Exchange.
Article 36 In respect of a certain contract, the opening price shall refer to the transaction price generated through call auction within five (5) minutes prior to the market-opening. In case no transaction price is generated through call auction, the first transaction price after the call auction shall be the opening price.
Article 37 In respect of a certain contract, the closing price shall refer to the last transaction price of the then-current trading.
Article 38 The then-current settlement prices of future and option contracts shall be prescribed by the Exchange in the detailed implementation rules.
Article 39 In respect of a newly launched contract, the benchmark price shall be determined by the Exchange.
Article 40 The Member which carries out the futures trading shall pay trading fee, delivery fee and others to the Exchange subject to the applicable provisions. The standards for the fees shall be separately formulated by the Exchange.
Article 41 The Exchange shall implement the price limit policy. When in respect of a certain contract, there exist, within five (5) minutes prior to the closing, only buy (sell) orders at the trading limit price but without the sell (buy) orders at the trading limit price, or there occurs transaction upon existence of sell (buy) orders without opening of the trading limit price, the Exchange will determine that there exist the price limit up (down) for the futures contract at the closing of the trading day, and will handle subject to applicable provisions of the Exchange.
Article 42 After acceptance of the authorization orders of its clients or overseas brokers, the futures company Member shall timely input the orders into the trading system of the Exchange for auction trading.
After acceptance of the authorization orders of its clients, the overseas broker shall timely input the orders into the trading system of the Exchange through the futures company Member for auction trading.
Article 43 Except otherwise prescribed by the Excheng, the Exchange’s computer automatic order-matching system will sort the buy and sell orders under the principle of price priority and time priority. Automatic order-matching transaction will be made when the buy price is higher than or equal to the sell price.
Article 44 When the settlement reserve is lower than the minimum amount for opening a position, the Exchange’s trading system will not accept any orders of opening a position.
Article 45 The buy and sell orders shall be effective after being transacted through the trading system’s order-matching, and the information will be sent to the Member through the transaction reporting system. The Member shall timely notify its clients and overseas brokers after receipt of the reported transaction information; and the overseas broker shall timely notify its clients after receipt of the reported transaction information.
Article 46 In case the quantities of the buy or sell orders are not fully transacted in a one-off manner, the remaining quantities will stay in the Exchange’s trading system and continue participation in the auction trading on the then-current, except otherwise prescribed by the Exchange.
Article 47 After the ending of daily trading, the Member may obtain the transaction records through the Exchange’s Member service system. The Member shall timely check the records and shall propose the objection, if any, to the Exchange in writing on the then-current.
Article 48 The Exchange shall keep the futures trading, settlement and delivery data for a period of no less than twenty (20) years.
The futures company Member shall keep its clients’ account opening data and order records, trading settlement records of its clients and overseas brokers and other business records for a period of no less than twenty (20) years.
The Member shall properly keep the data, certificates and books with respect to the settlement for inquiry and inspection. The relevant data and materials shall be kept for no less than twenty (20) years.
Article 49 The Exchange shall implement the hedging management policy. The Exchange shall examine the hedging applicant’s business scope and the operation performance data of the previous years, the sales and purchase contracts of spot goods and other data and materials that can reflect its operation of the spot goods to ascertain its hedging amount.
Article 50 The Exchange shall implement the arbitrage trading management policy. The Exchange shall examine the arbitrage amount applicant’s application materials to ascertain its hedging amount.
Article 51 The hedging amount and the arbitrage amount shall be used subject to the applicable provisions of the Exchange.
Article 52 The Exchange shall implement the abnormal trading management policy, so as to supervise and control the abnormal trading. Any suspected illegal or non-complying trading shall be reported to the CSRC for investigation and punishment.
Article 53 The Exchange shall carry out supervision and control over the program trading. Any non-futures company Member or client that engages in the program trading shall report the required information as prescribed by the Exchange.
Article 54 The Exchange shall implement the policy of management of the actual control relationship accounts to manage the actual control relationship accounts.
Article 55 The Exchange may, based up the business needs, implement the investor suitability management policy and the market maker policy.
Chapter III Handling of Abnormalities
Article 94 In case of any of the following circumstances during the futures trading, the Exchange may declare an abnormal situation and shall take emergency measures to mitigate or prevent the risks:
(i) The trading cannot be normally carried out due to the earthquake, flood, fire or any other force majeure event or the computer system failure or any other reason that cannot be attributable to the Exchange;
(ii) The settlement or delivery crisis is occurring to the Member, which is exerting or will exert material impacts to the market;
(iii) The risk fails to be mitigated or prevented after the appropriate measures have been taken upon occurrence of the circumstance under Article 59 above; or
(iv) Any other circumstance as prescribed by the Exchange.
In case of the circumstance under the Item (i) of the preceding paragraph, the CEO of the Exchange may take such emergency measures as adjusting the time of opening and/or closing the market, and/or temporarily suspending the trading; or in case of any of the circumstances under the Items (ii), (iii) and (iv) of the preceding paragraph, the Board of Governors may decide to take such emergency measures as adjusting the time of opening and/or closing the market, temporarily suspending the trading, adjusting the ranges of the price limits, increasing the trading margins, suspension of position opening, liquidation within a prescribed period, forced liquidation, limiting withdrawal and other measures.
Article 95 The Exchange must report to the CSRC prior to its submission of an abnormal situation and taking of any emergency measures.
Article 96 In case the Exchange declares an abnormal situation and decides to temporarily suspend trading, the period for suspended trading shall not exceed three (3) trading days except as otherwise prolonged subject to the approval by the CSRC.
Chapter IV Information Disclosure and Management
Article 97 The Exchange shall be entitled to the varied basic information arising out of its trading activities and the information products processed from its trading activities, all of which shall not be transmitted, operated and/or used by any entity or individual for any commercial purpose without the Exchange's permission.
Article 98 The Exchange shall release the price information of the then-current trading day, the necessary statistics and other relevant information.
Article 99 The information released by the Exchange shall include the names of the contracts, the contract months, the opening prices, the latest prices, the increase and decrease, the settlement prices, the highest prices, the lowest prices, the trading volume, the open interests and the changes thereto, the rankings of trading volume and open interests of the Members, the agreed capacities of any and all designated delivery warehouses as approved by the Exchange, the quantities of the warehouse receipts on par and the increases and decreases thereof, and other information that needs to be released.
The information shall be regularly released on the real-time, daily, weekly, monthly or yearly basis as per its different contents.
Article 100 The Exchange may compile, and release to the market, the relevant indexes based on the futures and option trading quotations or the physicals data, and may develop or authorize an outside agency to develop the index products.
Without the Exchange's permission, no entity or individual may compile indexes by using the Exchange's information or launch any products related to the indexes released by the Exchange.
Article 101 The Exchange shall take effective communication means and set up the synchronized quotation and real-time transaction reporting system.
Article 102 The Exchange shall bear no liability in the event it normally releases the information but the trading of the Members, overseas brokers and clients is adversely affected due to any failure in the transmission by any public media.
Article 103 Any of entities and individuals shall not release any false or misleading information.
Article 104 Any of the Exchange, the Members, the overseas brokers, the designated delivery warehouses or the designated futures margin depositary banks shall not disclose any commercial secrets from the business.
Subject to approval, the Exchange may provide the relevant information to the applicable regulatory authorities or other relevant entities or agencies buts shall comply with the applicable non-disclosure requirements.
Article 105 The Exchange shall set up off-site data backup so as to guarantee the safety of the trading data.
Chapter V Supervision and Management
Article 106 The Exchange shall carry out self-regulatory management on the business matters related to the futures trading of the Exchange subject to relevant laws, regulations, rules, these Rules and the applicable provisions.
Article 107 The main contents of the supervision and management by the Exchange shall be:
(i) To supervise and inspect the practical implementation of the futures market’s laws, regulations and rules and the Business Rules so as to control the market risk;
(ii) To supervise and inspect the conducts of any and all Members and overseas brokers and their internal management;
(iii) To supervise and inspect the financial situations and credit statuses of any and all Members and overseas brokers;
(iv) To supervise and inspect the futures-related business matters of any and all clients, designated delivery warehouses, designated futures margin depositary banks and other participants in the futures market;
(v) To mediate and handle the futures trading disputes and investigate and handle any and all irregularity cases;
(vi) To assist the judicial organs and the administrative enforcement organs to legally perform official duties; and
(vii) To supervise and manage other violations against the principles of “openness, fairness and impartiality” or causing market risks.
Article 108 The Exchange shall annually carry out spot check or overall examination in respect of the Members’ compliance with the Exchange’s business rules, and report the check and examination results to the CSRC.
Article 109 The Exchange shall register as a case and investigate any suspected irregularity.
Article 110 When the Exchange performs its duties of supervision and management, it may exercise the powers of investigation, evidence collection and otherwise, and the Members, overseas brokers, clients, designated delivery warehouses, designated futures margin depositary banks and other participants in the futures market shall cooperate.
Article 111 Members, the overseas brokers, the clients, the designated delivery warehouses, the designated futures margin depositary banks and other participants in the futures market shall accept the supervision and management by the Exchange over their futures business. In case of those failing to provide accurate data or materials, concealing the truths of the facts, intentionally avoiding the supervision or management or otherwise offering no assistance or hindering the Exchange’s workers to exercise the powers, the Exchange will take necessary restrictive measures and impose disciplinary sanctions subject to the applicable provisions.
Article 112 In case any of the Members, the overseas brokers, the clients, the designated delivery warehouses, the futures margin depositary banks and other participants in the futures market is suspected to have committed any material irregularity and the Exchange has register it as a case, the Exchange may take appropriate measures for the purpose of preventing further expansion of the consequences arising out of the irregularity.
Article 113 In respect of any significant issue arising out of the futures trading, a special investigation committee may, subject to the approval by the Board of Governors, be formed by the Member representatives, the Exchange’s workers and the relevant persons for investigation. The special investigation committee shall exercise the supervision and management powers pursuant to these Rules during its existence. The special investigation committee shall be subject to the challenge requirement.
Article 114 In case any of the Exchange’s workers cannot properly perform his or her supervision and management duties, any of the Members, the overseas brokers, the clients, the designated delivery warehouses and the designated futures margin depositary banks shall have the right to complain or report to the Exchange or the CSRC. Any verification thereof will result in serious handling.
Article 115 The Exchange shall formulate the irregularity investigation and punishment provisions to handle the irregularities.
Chapter VI Supplementary Provisions
Article 121 The Exchange may formulate detailed implementation rules pursuant to these Rules.
Article 122 The Board of Governors of the Exchange shall be responsible for interpreting these Rules.
Article 123 Any drafts of or amendments to these Rules shall be adopted by the Members’ Meeting and reported to the CSRC for approval.
Article 124 These Rules shall enter into force as of January 9, 2017