Notice on Investigation and Penalties for Violations of Relevant Rules and Regulations in January and February 2020

Updated on Mar 17,2020

Notice on Investigation and Penalties for Violations of Relevant Rules and Regulations in January and February 2020

Shanghai Futures Exchange (hereinafter referred to as “The Exchange”) has been on continuous efforts in investigating and penalizing violations of relevant rules and regulations, so as to strengthen the risk management of the futures market, regulate the futures trading activities and protect the legitimate rights and interests of futures market participants. The enforcement against such violations in January and February 2020 are listed as follows:

In the aspect of administration of abnormal trading behaviors, in January，the Exchange has dealt with a total of 79 cases, among which 37 case were self-trades, 38 cases were frequent order cancellations, and 4 cases were exceeding the limit of placing and cancellation of large-amount orders. The Exchange has separately notified the relevant clients by phone through members and placed 4 clients on the Exchange’s watch list, notified 5 abnormal trading behaviors to all the members. The Exchange has suspended 1 client from opening new positions on the relevant futures contracts and notified to the market. In February，the Exchange has dealt with a total of 54 cases, among which 28 case were self-trades, 22 cases were frequent order cancellations, 3 cases were exceeding the limit of placing and cancellation of large-amount orders and 1 case was the combined size of positions within a group of accounts with actual control relationship exceeding the position limit prescribed by the Exchange. The Exchange has separately notified the relevant clients by phone through members and placed 8 clients and 1 group of accounts with actual control relationship on the Exchange’s watch list, notified 59 abnormal trading behaviors to all the members.

In the aspect of identification and cooperative investigation of accounts with actual control relationship, in January, The Exchange has identified 78 group of 172 clients that exist the actual control relationship and urged 5 group of 17 clients to cooperate with the investigation of the actual control relationship. In February，The Exchange has identified 41 group of 99 clients that exist the actual control relationship.

In the aspect of inspecting cases violating trading rules, in January，the Exchange has dealt with 13 cases suspected of violation trading rules, among which 2 cases were suspected of accommodation trade, 1 case was price fluctuation caused by self-trade, 3 cases were suspected of existing actual control relationship but has not reported, and 7 cases were price fluctuation caused by wrong orders, program errors of trading software and market price orders. In February，the Exchange has dealt with 13 cases suspected of violating trading rules, among which 3 were price fluctuation caused by program errors of trading software and market price orders, 1 case was price fluctuation caused by position closing which did not meet the requirements of the Exchange, and 9 cases were price fluctuation caused by wrong orders. The Exchange reminds the investors to be in compliance with its rules in the trading activities and cooperate with the reporting of actual control relationship accounts.

Shanghai Futures Exchange

Mar. 17, 2020