CHAPTER 1 GENERAL PROVISIONS

Article 1 These General Exchange Rules are made in accordance with the Futures and Derivatives Law of the People’s Republic of China, the Regulations on the Administration of Futures Trading, the Interim Measures for the Administration of Overseas Traders’ and Overseas Brokers’ Engagement in the Trading of Specified Domestic Futures Products (“Interim Measures”), the rules of the China Securities Regulatory Commission (“CSRC”), and the Articles of Association of Shanghai International Energy Exchange (“Articles of Association”) to regulate futures trading activities, protect the lawful rights and interests of all parties in futures trading, maintain an orderly market, and safeguard the public interest.

Article 2 The Shanghai International Energy Exchange (“Exchange”), placing public interest as its priority, maintains a fair, orderly, and transparent market and organizes futures trading and its related activities.

Article 3 These General Exchange Rules apply to the futures trading and other related activities organized by the Exchange.

The Exchange and its Members, Overseas Special Participants, Overseas Intermediaries, Clients, Delivery Storage Facilities, futures margin depository institutions, Designated Inspection Agencies, information technology service providers, other participants of the futures market, and their respective staff shall abide by these General Exchange Rules.

“Overseas Special Participants” (“OSPs”) refers to overseas entities that, having met the criteria prescribed by the CSRC and the Exchange, are approved by the Exchange to directly trade on the Exchange, including the Overseas Traders (i.e., Overseas Special Non-Brokerage Participants or “OSNBPs”) and Overseas Brokers (i.e., Overseas Special Brokerage Participants or “OSBPs”) that directly trade on the Exchange in accordance with the Interim Measures.

“Overseas Intermediaries” refers to Overseas Brokers that do not directly trade on the Exchange but trade and clear transactions through Futures Firm Members or overseas brokers that directly trade on the Exchange.

CHAPTER 2 PRODUCTS AND CONTRACTS

Article 4 The Exchange lists the products it has registered with the CSRC. Contracts for a listed product include futures contracts, options contracts, and other derivatives.

“Futures contract” as referred to in the Rules of the Exchange means a standardized contract uniformly formulated by the Exchange stipulating the delivery of a certain quantity of the underlying asset at a specified time and place in the future.

“Options contract” as referred to in the Rules of the Exchange means a standardized contract stipulating that the buyer is entitled to buy or sell the specified underlying asset (including futures contracts) at a specific price at a certain time in the future.

Article 5 The main specifications of a futures contract may include contract name, product name, contract size, price quotation, minimum price fluctuation, daily price limit, delivery month, trading hours, last trading day, delivery period, grades and quality specifications, delivery venues, minimum trading margin, settlement type, product symbol, listing exchange, and other terms prescribed by the Exchange.

Article 6 The main specifications of an options contract may include contract name, underlying asset, contract type, contract size, price quotation, minimum price fluctuation, daily price limit, contract months, trading hours, last trading day, expiration date, strike price, options style, product symbol, listing exchange, and other terms prescribed by the Exchange.

Article 7 A contract is denominated in RMB or such other currencies as prescribed by the Exchange.

The listing price for a newly listed contract is determined by the Exchange.

Article 8 The appendices to a contract are an integral part of, and have the same legal force as, the contract.

Article 9 Specified Domestic Products are determined and published by the CSRC.

OSPs, Overseas Intermediaries, and overseas Clients may only engage in the futures trading and the related activities with respect to the Specified Domestic Products as well as in other futures trading and related activities approved by the CSRC.

Subject to the approval of the Exchange, OSPs may directly engage in the futures trading of Specified Domestic Products on the Exchange, the specific measures governing which will be separately prescribed by the Exchange.

CHAPTER 3 MEMBERS AND OVERSEAS SPECIAL PARTICIPANTS

Article 10 Futures trading on the Exchange is limited to Members and OSPs of the Exchange.

Article 11 Members of the Exchange are classified into Futures Firm Members (“FF Members”) and Non-Futures Firm Members (“Non-FF Members”).

The Exchange may admit special Members as necessary for trading, clearing, or other purposes.

Article 12 Any applicant seeking to become a Member or an OSP of the Exchange shall meet the qualification requirements prescribed by laws, administrative regulations, and administrative rules and by the Exchange.

Article 13 The acquisition, change, and termination of membership or OSP status is subject to the approval of the Exchange and shall be reported to the CSRC and announced.

Article 14 Members and OSPs are entitled to the following rights:

(1) Trading on the Exchange in accordance with rules; in addition, Members may conduct clearing, delivery, and other businesses directly with the Exchange;

(2) Accessing the trading facilities provided by the Exchange and obtaining the information and services related to futures trading;

(3) Exercising the rights specified in the agreement entered into with the Exchange;

(4) Exercising the right of appeal in accordance with the trading rules; and

(5) Exercising any other rights as provided by the Exchange.

Article 15 Members and OSPs shall perform the following obligations:

(1) Complying with the relevant laws, administrative regulations, administrative rules, and policies of the People’s Republic of China (“China”);

(2) Complying with the Articles of Association, trading rules, clearing rules, and their implementing rules and other relevant rules of the Exchange (“Rules”);

(3) Paying all relevant fees as prescribed;

(4) Accepting the self-regulation of the Exchange;

(5) Fulfilling the obligations specified in the agreement entered into with the Exchange;

(6) An FF Member or an OSBP shall establish, improve, and strictly enforce service management rules and risk management rules, comply with information disclosure requirements, maintain a full and ongoing understanding of its Clients, strengthen Client management, enhance the monitoring of abnormal trading behaviors of Clients, and ensure Client assets and transactions are safe and secure; and

(7) Performing any other obligations as prescribed by the Exchange.

Article 16 The Exchange shall establish rules on the management of Members and OSPs, and exercise supervision over Members and OSPs.

The Exchange may impose requirements on the services, risk management, and technical system of Members and OSPs as it deems necessary. Members and OSPs shall meet such requirements on an ongoing basis, and ensure their technical systems are stable and reliable.

CHAPTER 4 TRADING

Article 17 “Futures trading” refers to the buying and selling of futures contracts or options contracts through open, centralized trading or in such other manners as approved by the CSRC.

The Exchange may offer Exchange for Physical services.

Article 18 A Member or OSP may apply to the Exchange for a trading seat in line with its needs.

Article 19 The Exchange, in accordance with laws, administrative regulations, administrative rules, and other relevant rules, establishes trader eligibility rules; sets market access requirements and criteria for Clients; and supervise and advise FF Members, OSBPs, and Overseas Intermediaries to perform trader eligibility obligations; and take actions against breach of these obligations in accordance with applicable rules.

Article 20 An FF Member, OSBP, or Overseas Intermediary shall prudently select its Clients in accordance with the trader eligibility rules, adequately disclose the risks of futures trading to its Clients, and ensure its Clients have committed to complying with the Rules of the Exchange.

FF Members, OSBPs and Overseas Intermediaries shall maintain an ongoing understanding of their Clients, fully assess the risk tolerance of Clients, and strengthen Client management.

Article 21 The Exchange implements a trading code system. An FF Member, OSBP, or Overseas Intermediary shall open a dedicated account and apply for a trading code for each of its Clients. Aggregation of the trading activities of different trading codes is prohibited.

Any special institutional Client that is required by laws, administrative regulations, administrative rules, or other relevant rules to manage assets through segregated accounts, may apply for a trading code for the assets managed under each such segregated account.

Article 22 A Client may place trading orders through such means as written instructions, telephone, the internet, and self-service devices.

FF Members, OSBPs, and Overseas Intermediaries shall, in accordance with relevant rules, perform funding and position checks on a Client against its trading orders.

Article 23 Trading orders consist of limit orders and other orders.

A trading order is valid only on the day of submission. Non-FF Members, OSNBPs, and Clients may, within the time limit prescribed by the Exchange, change or cancel a trading order before it is executed. For any trading order that is not fully filled and not canceled, the remaining quantity will remain in the Exchange’s trading system and participate in the auction trading of that trading day, unless otherwise provided by the Exchange.

Article 24 FF Members, OSBPs, and Overseas Intermediaries shall execute trades in accordance with Client instructions. Unless otherwise provided by the Exchange, upon receiving Client orders, FF Members, OSBPs, and Overseas Intermediaries shall promptly transmit them to the Exchange for auction trading, and shall not net them off the Exchange. Unless otherwise provided by the Exchange, all orders must be centrally matched on the Exchange.

Article 25 The Exchange’s electronic matching system will arrange buy and sell orders by price-time priority, and automatically match such orders when the bid price is greater than or equal to the ask price.

Orders are executed in the Exchange’s electronic matching system at the middle price among the bid price (bp), the ask price (sp), and the previous execution price (cp) as follows:

If bp ≥ sp ≥ cp, the latest execution price = sp;

If bp ≥ cp ≥ sp, the latest execution price = cp;

If cp ≥ bp ≥ sp, the latest execution price = bp.

The Exchange will separately provide the matching rules for special circumstances such as when the price limit is reached.

Article 26 A trade is concluded once the corresponding trading orders are matched and executed, upon which the Exchange shall send back an execution report in accordance with applicable rules. FF Members, OSBPs, and Overseas Intermediaries shall promptly notify their Clients of such execution reports.

A trade becomes effective upon its conclusion in accordance with the Rules of the Exchange. The buyer and the seller of the trade shall assume the trading results and perform the obligations arising therefrom.

The result of a trade concluded in accordance with the Rules of the Exchange, as indicated by the transaction data recorded in the Exchange’s system, shall not be changed, unless otherwise provided by the Exchange.

Article 27 Members shall obtain and examine transaction records by the prescribed method after market close on each trading day.

Any Member that objects to a transaction record shall raise its objection with the Exchange within the prescribed time period, which will be processed and given a response by the Exchange in a timely manner. A Member is deemed to have no objection over the transaction records if such objection is not raised within the prescribed time period.

Article 28 The Exchange implements market making for futures trading based on needs. Market makers recognized by the Exchange provide two-way quotes and other services for futures trading in accordance with the Rules of the Exchange and the market maker agreement.

Article 29 The Exchange exercises supervision over program trading. Any Non-FF Member, OSNBP, Client, or other person that engages in program trading shall report the relevant information as required by the CSRC and the Exchange, and shall not compromise the security of the Exchange’s systems or the normal course of trading.

The Exchange may institute differentiated reporting requirements, technical system requirements, and transaction fees, among others, for program trading activities that meet certain criteria.

Article 30 Members and OSPs that engage in futures trading shall pay transaction fees, order fees, cancellation fees, delivery fees, and other prescribed fees to the Exchange. The fee rates will be separately provided by the Exchange.

FF Members shall withhold and collect the taxes and charges levied on Clients and OSNBPs by state policies.

Article 31 The Exchange shall retain the documentations for futures trading, clearing, delivery, and other relevant activities for a period of no less than twenty (20) years.

Members, OSPs, Overseas Intermediaries, and futures margin depository institutions shall properly retain the documentations for trading, clearing, delivery, and other relevant activities; supporting documents and account books; Client complaint records; and other business records in accordance with the relevant rules.

CHAPTER 5 DELIVERY

Article 32 Delivery may take the form of physical delivery or cash settlement.

“Physical delivery” refers to the close-out of an open futures contract by the buyer and the seller upon its expiration by transferring the ownership of the contract’s underlying asset in accordance with the rules and procedures of the Exchange.

“Cash settlement” refers to the close-out of an open futures contract upon its expiration by crediting or debiting the profits or losses of the buyer and the seller based on the contract’s final settlement price in accordance with the rules and procedures of the Exchange.

Article 33 Delivery against futures contracts are centrally organized by the Exchange.

Article 34 A futures contract that remains outstanding after its last trading day shall proceed to delivery.

Delivery shall be conducted in the name of a Member. Unless otherwise provided by the Exchange, the delivery process for a Client or OSNBP shall be carried out through its Member.

Article 35 For any open futures contract subject to physical delivery, the Exchange performs delivery matching in accordance with the Rules of the Exchange.

The general rules of delivery matching and the delivery procedures are as prescribed in the corresponding Rules of the Exchange.

Article 36 Physical delivery may be conducted at a Delivery Storage Facility or other locations specified by the Exchange.

Delivery Storage Facilities consist of Delivery Warehouses and Delivery Factories, among others.

Delivery Storage Facilities are as recognized and announced by the Exchange, and are subject to annual inspections by the Exchange.

Article 37 Any Member that takes part in physical delivery shall make delivery payments, or submit standard warrants or other certificates of title to the underlying assets, to the Exchange within the time period specified by the Exchange.

If the quantity of physicals delivered in a physical delivery is within the permitted tolerance, payment for the tolerance will be calculated by the method prescribed by the Exchange.

Article 38 The standard deliverables, substitute deliverables, and premiums and discounts for a futures contract are as prescribed by the Exchange in the contract specifications or its Rules.

The premiums and discounts for deliveries at non-benchmark Delivery Storage Facilities and benchmark Delivery Storage Facilities will be separately provided by the Exchange.

Article 39 If the buyer’s Member wishes to challenge the standard warrants it has received during physical delivery, it shall promptly complete an on-site inspection and acceptance of the underlying assets at the relevant Delivery Storage Facility.

Article 40 The Exchange is entitled to order a Delivery Storage Facility to make rectifications or financial compensations and, if the circumstances are serious, suspend or revoke its Delivery Storage Facility status, if it:

(1) Issues a fraudulent standard warrant;

(2) Restricts the load-in or load-out of any deliverable commodity in violation of the Rules of the Exchange;

(3) Divulges any confidential business information relating to futures trading;

(4) Engages in futures trading in violation of applicable state regulations; or

(5) Engages in any other activity that breaches any rules of the CSRC or the Exchange.

Article 41 A Delivery Storage Facility is liable for compensation if, due to its fault, a lawful holder of standard warrant is unable to exercise holder’s rights under the standard warrant either in part or in whole.

The Exchange is liable for compensation to the extent prescribed by laws, administrative regulations, and relevant agreements.

CHAPTER 6 RISK MANAGEMENT

Article 42 The Exchange implements price limit.

The price limit is set by the Exchange and may be adjusted by the Exchange based on market risk conditions.

Article 43 The Exchange implements position management. Position management encompasses position limit, hedging, large trader position reporting, and position aggregation, among others.

Article 44 The Exchange implements position limit.

Positions are classified into general positions, hedging positions, and arbitrage positions. The Exchange sets and adjusts the position limit based on market risk conditions.

Members, OSPs, Overseas Intermediaries, and Clients shall trade within their position limits. The Exchange may establish other position limit rules for arbitrage and market making activities.

Exemption from the position limit may be requested for hedging and other futures trading activities recognized by the Exchange that are intended for risk management purposes.

Article 45 The Exchange implements trading limit. The Exchange may, based on market conditions, set and adjust the trading limit for each of the listed products and contracts as well as for some or all Members, OSPs, and Clients.

Article 46 The Exchange may carry out forced position reduction.

In the event that a same-direction Limit-Locked Market occurs during futures trading and causes a sharp rise in market risk, the Exchange has the right to automatically match, on a pro rata basis, the outstanding close-out orders in a contract placed at the limit price against the open positions held by Clients, Non-FF Members, and OSNBPs that have an unrealized profit on net positions in that contract, and then close them out at the limit price. The specific methods for forced position reduction will be separately prescribed by the Exchange.

Article 47 The Exchange may carry out forced position liquidation.

The Exchange may carry out forced position liquidation if a Member, OSP, Overseas Intermediary, or Client commits a violation such as exceeding the applicable position limit or failing to meet trading margin requirement in a timely manner and in accordance with the relevant rules, or falls under other circumstances prescribed by the Exchange.

Profits from forced position liquidation are handled in accordance with the relevant rules. All costs and losses incurred therefrom, including any additional losses arising from a failed liquidation due to market factors, shall be borne by the subject of the forced liquidation.

Article 48 The Exchange requires large trader position reporting.

A Member, OSP, Overseas Intermediary, or Client shall submit a report to the Exchange regarding its funds, open positions, and other required information in accordance with the relevant rules when its open positions in a particular contract reaches the reporting threshold set by the Exchange or when required by the Exchange. A Client shall submit such reports through its carrying FF Member, OSBP, or Overseas Intermediary. If a Client fails to submit such a report to the Exchange, its Member, OSBP, and Overseas Intermediary shall do so on its behalf.

The Exchange may set and adjust the reporting threshold and the related requirements based on market risk conditions.

Article 49 The Exchange implements risk warning.

The Exchange may, when it deems necessary, take one or a combination of the following measures to warn against and mitigate risks: requiring Members, OSPs, Overseas Intermediaries, and Clients to explain a specific matter, giving a verbal alert, issuing a written warning, or releasing a risk advisory.

Article 50 The Exchange implements an oversight system for accounts linked by actual control relationship.

For purposes of enforcing such systems as position limit, trading limit, management of abnormal trading behaviors, and large trader position reporting, the Exchange calculates the orders, trades, positions, and other relevant activities of accounts linked by actual control relationship on an aggregate basis.

Article 51 The Exchange implements an abnormal trading management system. The Exchange may take the corresponding self-regulatory measures against any Non-FF Member, OSNBP, or Client that exhibits abnormal trading behaviors. The specific identification criteria, handling procedures, and resolution methods will be separately prescribed by the Exchange.

An FF Member, OSBP, and Overseas Intermediary shall supervise its Clients’ trading activities to identify, stop, and report their abnormal trading behaviors in a timely manner, and shall not condone, induce, incite, or support Clients to engage in abnormal trading.

Article 52 Where the Exchange has grounds to believe that a Member, OSP, Overseas Intermediary, or Client has violated the Rules of the Exchange and is causing or will cause a significant impact on the market, it may take the following interim measures to contain the impact of the violation:

(1) Limiting funds deposits;

(2) Limiting funds withdrawals;

(3) Limiting the opening of new positions;

(4) Raising the margin requirement;

(5) Requiring the close-out of positions within a specified time period; and

(6) Carrying out forced position liquidation.

The above interim measures are taken at the discretion of the Exchange. The Exchange shall promptly file a report with the CSRC after taking interim measure (4), (5), or (6) of the preceding paragraph.

If the Exchange takes any interim measure, it shall notify the persons concerned by writing, recorded telephone call, or other documented forms of communication and shall provide justifications.

CHAPTER 7 ADDRESSING ABNORMALITIES AND EMERGENCIES

Article 53 In the event of an abnormal accumulation or rapid escalation of market risks or other abnormalities during futures trading, the Exchange may take the following emergency actions in accordance with its Rules, with a report immediately submitted to the CSRC:

(1) Adjusting the margin requirement;

(2) Adjusting the price limit;

(3) Adjusting the opening and closing time of the market;

(4) Setting or adjusting the trading limit or position limit;

(5) Limiting the opening of new positions;

(6) Limiting funds withdrawals;

(7) Requiring the close-out of positions within a specified time period;

(8) Carrying out forced position liquidation;

(9) Suspending trading; and

(10) Taking other emergency actions.

If consecutive price limit hits in the same direction occur with respect to the futures price, the Exchange may take such measures as adjusting the price limit, adjusting the trading margin requirement, limiting funds withdrawals, limiting funds deposits, setting or adjusting the trading limit, adjusting transaction fee rates, carrying out forced position liquidation, and carrying out forced position reduction to defuse the trading risks.

The Exchange shall promptly lift the emergency actions once the abnormalities specified in the first and second paragraphs of this Article are dispelled.

Article 54 In the event of any of the following emergencies during futures trading that disrupts the normal course of trading or undermines the fairness of the market, the Exchange may take emergency actions to mitigate risks, with a report promptly submitted to the CSRC:

(1) Trading, clearing, delivery, exercise and fulfillment of options, or other market activities cannot proceed as normal due to such reasons as force majeure, unforeseen event, major technical failure, or major human error; 

(2) A Member experiences a clearing or delivery crisis that is causing or will soon cause a material impact on the market;

(3) A circumstance specified in paragraph 2 of Article 53 of these General Exchange Rules occurs and the corresponding actions fail to mitigate the risks; or

(4) Other circumstances specified by the Exchange have occurred.

If any emergency specified in the preceding paragraph leads to major abnormalities in futures trading results, and clearing, delivery, or exercise or fulfillment of options based on such results would significantly disrupt the normal course of trading or undermine the fairness of the market, the Exchange may take such measures as canceling trades, which shall be promptly reported to the CSRC and announced.

Article 55 The Exchange shall create contingency plans for abnormalities and emergencies.

CHAPTER 8 INFORMATION MANAGEMENT

Article 56 The futures trading information of the Exchange includes market data, transaction data, and statistical materials created during the course of trading; circulars and notices released by the Exchange; and other relevant information to be disclosed by requirement of the CSRC. The foregoing information is centrally managed and released by the Exchange.

Article 57 The market data from futures trading is legally owned by the Exchange. The Exchange holds exclusive rights to all types of raw information generated from trading activities, as well as any information products derived from the processing of such data. Without the consent of the Exchange, no entity or individual may release the market data from futures trading or use it for commercial purposes. Without the consent of the Exchange, no organization or individual otherwise authorized to use the trading information may provide such information to any other organization or individual.

Article 58 The information released by the Exchange includes contract name, delivery month, opening price, last price, price change, closing price, settlement price, highest price, lowest price, trading volume, open interest and change thereof, Delta, implied volatility, Member ranking by trading volume and open positions, each Delivery Storage Facility’s storage capacity approved by the Exchange that is theoretically available for delivery activities, quantity of standard warrants and change thereof, and other information that needs to be published.

The foregoing information shall be released at set schedules on a real-time, daily, weekly, monthly, or yearly basis or otherwise based on the content concerned.

Article 59 The Exchange may compile and publicly release indices based on data from futures, options, physical, and other markets.

The Exchange may develop, either independently or through a third party it authorizes, index products based on the indices in the preceding paragraph.

Without the consent of the Exchange, no organization or individual may compile indices based on the information of the Exchange or list products based on the indices released by the Exchange.

Article 60 The Exchange shall use effective means of communication to build a real-time market data and execution report system.

Article 61 No entity or individual may fabricate, release, or distribute false or misleading information.

Article 62 The Exchange is not liable if trading by Members, OSPs, Overseas Intermediaries, or Clients is disrupted by a data relay issue at a Member, information service provider, or public media outlet when the Exchange is releasing market data as normal.

Article 63 The Exchange, Members, OSPs, Overseas Intermediaries, Delivery Storage Facilities, futures margin depository institutions, Designated Inspection Agencies, and information technology service providers as well as their respective staff shall keep confidential business information obtained from futures-related activities confidential and are obligated to maintain the confidentiality of Client information.

Once approved, the Exchange may disclose relevant information to the relevant regulatory authorities or other relevant parties, provided the corresponding confidentiality rules are observed.

Article 64 The Exchange maintains remote data backup to ensure the safety of transaction data.

Article 65 The Exchange has the right to charge fees for managing and releasing information.

CHAPTER 9 SELF-REGULATION

Article 66 The Exchange exercises self-regulation of futures trading and its related activities in accordance with state laws, administrative regulations, and administrative rules, these General Exchange Rules, and other applicable rules.

Article 67 Self-regulation by the Exchange mainly encompasses:

(1) Supervising and examining the observance of futures market laws, administrative regulations, administrative rules, and policies and the Rules of the Exchange to control market risks;

(2) Supervising and examining the futures trading, futures trading-related activities, and internal management practices of Members, OSPs, Overseas Intermediaries, and Clients;

(3) Supervising and examining the financial conditions and credit standing of Members, OSPs, Overseas Intermediaries, Clients, and other relevant persons;

(4) Supervising and examining the futures trading-related activities of Delivery Storage Facilities, futures margin depository institutions, Designated Inspection Agencies, information technology service providers, and other futures market participants;

(5) Mediating and resolving disputes arising from futures trading, and investigating and handling violations;

(6) Assisting judicial authorities and administrative enforcement agencies in carrying out their mandates in accordance with the law; and

(7) Exercising self-regulation over any other activity that undermines the goal of maintaining an open, fair, and impartial market or good faith or creates market risks.

Article 68 The Exchange may exercise the following powers when performing its self-regulatory duties:

(1) Accessing and making copies of the information and documents pertaining to futures trading and its related activities;

(2) Investigating and collecting evidence from Members, OSPs, Overseas Intermediaries, Clients, Delivery Storage Facilities, futures margin depository institutions, Designated Inspection Agencies, information technology service providers, and other futures market participants;

(3) Requiring Members, OSPs, Overseas Intermediaries, Clients, Delivery Storage Facilities, futures margin depository institutions, Designated Inspection Agencies, information technology service providers, and other futures market participants to issue declarations, statements, explanations, and clarifications on the matter under investigation; and

(4) Exercising any other powers necessary for performing its self-regulatory duties.

Article 69 The Exchange shall, on an annual basis, carry out a random or full inspection on Members, OSPs, and other relevant persons with respect to their compliance with the Rules of the Exchange, and submit the findings to the CSRC.

Article 70 The Exchange shall, in accordance with the relevant rules, launch a formal investigation into any suspected rule violation it has identified.

The Exchange shall promptly identify, process, and lawfully report signs of futures violations to the CSRC and cooperate with the CSRC in examinations and evidence collection.

Article 71 Members, OSPs, Overseas Intermediaries, Clients, Delivery Storage Facilities, futures margin depository institutions, Designated Inspection Agencies, information technology service providers, and other futures market participants shall accept the self-regulatory measures of the Exchange with respect to their futures trading and related activities. The Exchange may, in accordance with relevant rules, take the necessary self-regulatory measures or disciplinary actions against any person who provides false materials, withholds facts, evades investigations, or otherwise ignores or obstructs the performance of duties by the Exchange’s staff.

Article 72 After initiating a formal investigation against a Member, OSP, Overseas Intermediary, Client, Delivery Storage Facility, futures margin depository institution, Designated Inspection Agency, information technology service provider, or any other futures market participant that is suspected of committing a material violation in its futures-related activities, the Exchange may take appropriate measures to contain the impact of such violation.

Article 73 If any staff member of the Exchange fails to duly perform his or her self-regulatory duties, any Member, OSP, Overseas Intermediary, Client, Delivery Storage Facility, futures margin depository institution, Designated Inspection Agency, information technology service provider, and other futures market participant has the right to submit a complaint or tip to the Exchange or the CSRC. Any substantiated complaint or tip shall be addressed in accordance with the law.

Article 74 The Exchange shall establish measures for enforcing its rules to respond to violations.

Article 75 Under the central organization and coordination of the CSRC, the Exchange establishes information sharing and other supervisory collaboration arrangements for the futures market and related markets with the China Futures Market Monitoring Center Co., Ltd. and other relevant organizations.

CHAPTER 10 LIABILITIES

Article 76 Clients are entitled to file a complaint with the Exchange if any FF Member, OSBP, or Overseas Intermediary violates the Rules of the Exchange.

Article 77 FF Members, special Members, and OSBPs are fully liable for the futures trading activities conducted in their names. After bearing such liability, they may seek recourse against the responsible persons in accordance with laws, administrative regulations, administrative rules, and the rules of the Exchange.

Persons such as Non-FF Members, OSNBPs, and Clients are fully liable for their futures trading activities.

Clients have the right to report issues encountered during brokerage trading to the Exchange.

Article 78 A trade is legally binding upon its conclusion in accordance with the Rules of the Exchange, and shall not be voided, modified, or revoked by a trader for any defect in its qualifications, any false expression of intention, or any dispute over the source of margin. Any losses resulting from the trade shall be personally borne by the trader.

Article 79 The Exchange, in its capacity as the central counterparty, organizes the central clearing of futures trades and assumes the obligations and responsibilities of futures trading in accordance with laws and regulations.

Article 80 The Exchange is not liable for any losses resulting from its performance of the duties under laws, administrative regulations, administrative rules, and the Rules of the Exchange except where such losses are caused by the Exchange intentionally or as a result of its gross negligence.

CHAPTER 11 DISPUTE RESOLUTION

Article 81 Any dispute over futures trading or its related activities between Members, OSPs, Overseas Intermediaries, Clients, Delivery Storage Facilities, futures margin depository institutions, Designated Inspection Agencies, information technology service providers, and any other futures market participants may be resolved among themselves, referred to the Exchange for mediation, or lawfully submitted to an arbitral institution for arbitration or to a court for litigation.

Any party that requests mediation by the Exchange shall submit a written application. Once an agreement is reached through mediation, the Exchange will issue a mediation statement, which takes effect upon being confirmed by the parties through signature or seal.

Article 82 Any dispute between the Exchange and a Member, OSP, Overseas Intermediary, Client, Delivery Storage Facility, futures margin depository institution, Designated Inspection Agency, information technology service provider, or any other futures market participant shall be submitted to an arbitral institution for arbitration or to a people’s court for litigation in accordance with the laws, regulations, and judicial interpretations of China as well as any relevant agreements. In such disputes, rights and obligations are governed by the laws of China.

CHAPTER 12 MISCELLANEOUS

Article 83 The following terms have the meaning set out below:

(1) “Member” refers to a for-profit legal person or an unincorporated organization that is duly established in the Chinese mainland and approved by the Exchange to engage in futures trading activities on the Exchange pursuant to applicable laws, regulations, and the Articles of Association.

(2) “Overseas Trader” means the “overseas trader” specified in the Interim Measures and refers to a legal person or unincorporated organization duly established outside the Chinese mainland, or a natural person with lawful foreign citizenship, that engages in futures trading and assumes the trading results.

(3) “Overseas Broker” means the “overseas broker” specified in the Interim Measures and refers to a financial institution that is duly established outside the Chinese mainland and possesses the qualifications recognized by the futures regulatory authority of its country (region) of residence to accept funds and trading orders from traders and engage in futures trading in its own name for said traders.

(4) “Client” refers to a natural person, legal person, or unincorporated organization domiciled in or outside the Chinese mainland who engages in futures trading through such an organization as an FF Member, OSBP, or Overseas Intermediary in accordance with the laws and regulations of China and assumes the trading results.

(5) “Central counterparty” refers to a legal person that interposes itself between the parties to futures trades upon their conclusion to become the seller to every buyer and the buyer to every seller, and performs net clearing and provides performance guarantee for futures trading.

(6) “Day trading hours” refers to the period from 9:00 a.m. to 11:30 a.m. and from 1:30 p.m. to 3:00 p.m. Beijing time on a trading day. Any change to the trading hours will be separately announced by the Exchange.

(7) “Continuous trading” refers to trading during the hours prescribed by the Exchange other than the day trading hours.

(8) “Trading day” refers to any day from Monday to Friday (excluding public holidays in China, unless otherwise specified by the Exchange). For products that support continuous trading, a trading day spans from the continuous trading hours of the preceding business day to the end of the day trading hours of the current day. For products that do not support continuous trading, a trading day only consists of the day trading hours of a day. The daily trading hours for each product on a given day will be separately announced by the Exchange.

(9) “Trading code” refers to the dedicated code used by a Non-FF Member, OSNBP, or Client for futures trading.

(10) “Business day” refers to any day other than public holidays and rest days in China. A “business day” and a “day” both refer to a calendar day from 00:00 to 24:00 Beijing time.

(11) “Of the day” and “each day” refer to the relevant trading day and each trading day, respectively.

(12) “Price limit” refers to the maximum range that the trading price of a contract may move up or down within a trading day. Quotes outside this limit are considered invalid and will not be executed.

(13) “Limit-Locked Market” has the criteria to be separately provided by the Exchange.

(14) “Minimum price fluctuation” refers to the minimum price change for a contract.

(15) “Delivery month,” with respect to a futures contract, refers to the month set out in the contract specifications in which delivery against the contract will take place, unless otherwise provided by the Exchange.

(16) “Contract month,” with respect to an options contract, refers to the month in which the underlying asset of that options contract is delivered, unless otherwise provided by the Exchange.

(17) “Last trading day” refers to the last trading day on which a contract can be traded.

(18) “Contract size” refers to the quantity of the underlying asset corresponding to one (1) lot of the contract. Trading must be conducted in multiples of one (1) lot. The contract size of a product is set out in the contract specifications.

(19) “Grades and quality specifications” refers to the quality requirements for the underlying asset as set out in the contract specifications.

(20) “Limit order” refers to an order that must be executed at a specified price or better.

(21) “Actual control relationship” refers to the action or ability of any person to control or materially influence the trading decisions of another person by virtue of its powers including the power to manage, use, receive incomes from, or dispose of the futures account of the latter person.

(22) “Trading price,” with respect to a futures contract, refers to the price to deliver the standard deliverables of the futures contract at a Delivery Storage Facility, unless otherwise provided by the Exchange.

(23) “Underlying asset,” with respect to an options contract, refers to the common object to which the rights and obligations of the option buyer and the option seller are directed.

(24) “Opening price” refers to the execution price of a particular contract established by a call auction in the five (5) minutes before market open or, if none is established thusly, the first execution price during auction trading on that day.

(25) “Last price” refers to the latest execution price of a contract during the trading hours of a particular trading day.

(26) “Closing price” refers to the last execution price of a particular contract on a trading day.

(27) “Settlement price” of a day refers to the weighted average price of a particular contract, determined by a certain set of rules based on the trades executed within a specified period on that day. For any contract that did not produce an execution price on a day, the rule for determining the settlement price for that day will be separately prescribed by the Exchange.

(28) “Exercise” refers to the method of closing out an open options contract whereby the buyer duly exercises the option and buys or sells the underlying futures contract at the strike price.

(29) “Fulfillment” refers to the method of closing out an open options contract whereby, upon the duly exercise of the option by the buyer, the seller becomes obligated to buy or sell a certain quantity of the underlying asset at the strike price in accordance with the terms of the contract.

(30) “Delta” refers to the ratio between the price change of an options contract to the price change of its underlying asset.

(31) “Implied volatility,” with respect to an options contract, refers to the price volatility of the underlying futures contract as calculated from the options pricing model based on the market price of the options contract.

(32) “Final settlement price” refers to the benchmark price for the final settlement of a futures contract.

(33) “Standard warrant” refers to a standardized certificate for taking delivery of commodities issued by a Delivery Storage Facility and registered with the Exchange. Standard warrants consist of warehouse standard warrants and factory standard warrants.

(34) “Delivery Storage Facility” refers to a legal person or an unincorporated organization that provides services for the physical delivery against futures contracts.

(35) “Designated Inspection Agency” refers to an inspection agency designated by the Exchange to engage in the inspection of commodities underlying futures contracts.

(36) “Position limit” refers to the maximum position a Member, OSP, Overseas Intermediary, or Client is permitted by the Exchange to hold.

(37) “China” refers to the People’s Republic of China. Any reference to time means Beijing time. Unless specifically stated, “state” and “national” refer to China; “and more,” “and less,” and “within” include the number referenced.

Article 84 Notices and documents of the Exchange may be sent by the following methods and will be deemed delivered and in effect by the following rules:

(1) If delivered in written form and in person, the effective date shall be the day of delivery;

(2) If sent by telephone or telex, the effective date shall be the day of acknowledgment by the recipient;

(3) If sent by fax, the effective date shall be the day the fax is successfully sent to the fax number designated by the recipient;

(4) If handed over to an express delivery service provided by a courier company recognized by the Exchange, the effective date shall be the fifth (5th) trading day of handing them over to the company for an address within the Chinese mainland and the tenth (10th) trading day for an address outside the Chinese mainland;

(5) If sent by email or other electronic messaging systems, the effective date shall be the day the notice enters the recipient’s designated electronic messaging system or, if no such system has been designated, the first time the electronic message enters any system of the recipient;

(6) If sent by a circular, all the intended recipients are deemed to have received the notice upon the initial publication of the circular;

(7) Other methods prescribed by the Exchange.

The day on which a notice or document is returned shall be deemed as the day of delivery if it is not actually received by the recipient due to the following reasons: the address provided or confirmed by the recipient is incorrect; the recipient refuses to provide the address; the recipient fails to timely notify the Exchange of a change of address; or the recipient or the agent designated by the recipient refuses to sign the receipt of the notice or document.

If the Exchange sends a notice by more than one method, the time of delivery shall be the earliest time the notice is delivered.

Article 85 The Exchange may make specific Rules in accordance with these General Exchange Rules.

Article 86 The Exchange reserves the right to interpret these General Exchange Rules.

Article 87 These General Exchange Rules and any amendment thereto are subject to the approval of the general meeting of the Exchange and the approval of the CSRC.