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Large Trader Position Reporting

Overview

SHFE requires reporting of large trader positions. A Member, OSP, Client, or Overseas Intermediary must report to SHFE if: (a) its general positions in a futures contract reach or exceed 80 percent (or 60 percent for an Overseas Intermediary) of its position limit specified in SHFE's futures rules for the particular products; or (b) SHFE requires such a report. The report should indicate financial position, open positions, delivery intentions, and other relevant information. SHFE may set and adjust the threshold, contents, and submission method of such report according to market risk conditions.

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Rules

Risk Management Rules of the Shanghai Futures Exchange (specifically Chapter 6 "Large Trader Position Reporting") .

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Frequently asked questions

1.  What is the reporting threshold?
A Client should submit a large trader report to SHFE by 3:00 p.m. of the following trading day if its general positions in a futures contract reach or exceed 80 percent of the position limit specified in SHFE's futures rules for the particular products, or if it is otherwise required by SHFE. SHFE may determine and adjust the reporting criteria based on the level of market risk.
 
2.  Is large trader position reporting required for a group of accounts involving actual control relationship?
According to the Measures for the Administration of Futures Exchanges, the Interim Provisions on Position Management in the Futures Market, and the Administration of Accounts Involving Actual Control Relationship Rules of Shanghai Futures Exchange, transactions and positions of a group of accounts linked by actual control relationship are calculated on an aggregate basis. A large trader report is required if the aggregate positions reach SHFE's reporting threshold.
 
3.  How to submit a large trader report?
An ordinary Client should submit its large trader reports through its carrying FF Member or OSBP.
A Client that engages in futures trading through an Overseas Intermediary should request the Overseas Intermediary to submit such reports through the relevant FF Member or OSBP.
4.  Where can I find the reporting form and guidelines?
 
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Day-to-Day Management of Accounts Involving Actual Control Relationship

Overview

Futures trading at SHFE requires filing of accounts related by actual control relationship. "Actual control" refers to the action or fact of any person (whether an individual or entity) of controlling or materially influencing the trading decisions of another person (whether an individual or entity) by virtue of its powers including the power to manage, use, receive income from, or dispose of the futures account of the latter person.

 

A Client holding any account involving actual control relationship as recognized by the identification criteria should complete account filing within ten trading days after signing the futures brokerage contract. Any Client who is involved in a change of actual control relationship should voluntarily file such change with CFMMC within ten trading days through the corresponding FF Member.

 

SHFE considers the trades, positions, and other relevant trading data of a group of accounts involving actual control relationship on an aggregate basis when enforcing such rules as position limit, trading limit, and management of abnormal trading behaviors.

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Process

Refer to the guidelines for day-to-day management of accounts involving actual control relationship .

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Rules

 

Administration of Accounts Involving Actual Control Relationship Rules of Shanghai Futures Exchange

 

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Frequently asked questions

1.  What are the identification criteria for "actual control"?
According to Article 4 of the Administration of Accounts Involving Actual Control Relationship Rules of Shanghai Futures Exchange ("Actual Control Account Rules"), "actual control" refers to the action or fact of any person (whether an individual or entity) of controlling or materially influencing the trading decisions of another person (whether an individual or entity) by virtue of its powers including the power to manage, use, receive incomes from, or dispose of the futures account of the latter person.
 
According to Article 5 of the Actual Control Account Rules, by the principle of "substance over form", a person is deemed to have actual control over the futures account of another person during futures trading if the first person:

(1)  is the controlling shareholder of the latter person, defined as any person whose contribution represents 50 percent or more of the total contribution in the latter person, or any shareholder who holds 50 percent or more of the total shares of the latter person, or any shareholder who, despite having a contribution or shareholding at less than 50 percent, can nevertheless exercise the voting rights granted by its contribution or shareholding to significantly influence the decisions of the shareholders' meeting or the shareholders' general meeting of the latter person;
(2)  is the authorized account agent, designated trader, funds transfer agent, settlement statement verifier, or any other type of agent engaged by the latter person;
(3)  is the legal representative, principal partner, director, supervisor, senior manager, etc. of the latter person, or shares the same legal representative, principal partner, director, supervisor, or senior manager, etc. with the latter person;
(4)  is the spouse of the latter person;
(5)  is a parent, child, or sibling of the latter person and has the decision-making power or a significant influence over the day-to-day trades made through the futures account of the latter person;
(6)  has the decision-making power or a significant influence over the day-to-day trades made through the futures account of the latter person by virtue of investment, contractual or financing arrangement, or other arrangements;
(7)  has the decision-making power or a significant influence over the day-to-day trades made through two or more futures accounts of the latter person; 
(8)  is under any other situation prescribed by the CSRC or identified by SHFE.

2.  Can an identified actual control relationship be removed?
A Client may apply to remove an actual control relationship if it no longer meets the identification criteria.
To do this, a Client should submit a request to CFMMC through its carrying FF Member to be forwarded to SHFE for review. The Client should also provide such explanatory materials as required by SHFE.

3.  How can I check the filing status of my account's actual control relationship?
A Client can check the filing status through its FF Member. The FF Member will then check the filing status in the SHFE member service system via Services - Accounts Involving Actual Control Relationship – Filing Status.
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Contact Us Links Private Policy Website Map
Address: 500 Pudian Road, Shanghai Zip: 200122 Tel: 68400000 Fax: +86 21 68401198
SHFE Company: INE | SFIT | SHIFD | SHFES
©Copyright SHFE
沪ICP备11031067号-1 沪公网安备 31011502008304号