Notice on Investigation and Penalties for Violations of Relevant Rules and Regulations in October 2018

Updated on Nov 07,2018

Notice on Investigation and Penalties for Violations of Relevant Rules and Regulations in October 2018

To strengthen risk management and frontline regulation of the futures market, well regulate futures trading behaviors and protect the legitimate interests of the market participants, Shanghai Futures Exchange(hereinafter referred to as “The Exchange”) has made continuous efforts to investigate and penalize violations of relevant rules and regulations.The enforcement against such violations in October 2018 is listed as follows:

In the aspect of administration of abnormal trading behaviors, the Exchange has dealt with a total of 59 cases of abnormal trading behaviors, among which 24 cases were self-trades that exceed the limits, 32 cases were frequent order cancellations, two cases for exceeding the limit of placing and cancellation of large-amount orders, and one case for 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 60 relevant members of the abnormal trading behaviors above by phone, and placed 8 clients on the Exchange’s watch list, notified 9 abnormal trading behaviors to all the members. There were one client that reached the threshold set by the Exchange on abnormal trading, the Exchange has suspended the client from opening new positions on the relevant futures contracts and notified to the whole market.

In the aspect of identification and investigation coordination of accounts with actual control relationship,the Exchange has identified 52 groups of 144 clients that have reported the actual control relationship, and urged 5 groups of 10 accounts to report the actual control relationship.

In the aspect of examining cases suspected of violating trading rules, the Exchange has examined six cases suspected of violating trading rules, among which one case was mutual trading and five cases were trading behaviors that led to abnormal price fluctuations.The exchange has talked with three clients, filed and investigated one of the cases suspected of violating trading rules. In October, the Exchange has made one written decision on the case violating trading rules, warned or suspended two clients from opening new positions, and recorded it into the credit file of China’s capital market.

The Exchange hereby notifies the above.

Shanghai Futures Exchagne

December 7 ,2018