Shanghai International Energy Exchange（hereinafter referred to as “INE”）, the subsidiary of Shanghai Futures Exchange has released its circular on the trading margin update for crude oil futures contracts SC1901 and SC1902 listed below effective since the daily clearing process begins on August 2, 2018:

The trading margin rate of contracts SC1901 will be updated from 7% to 6% of the contract value.

The trading margin rate of contracts SC1902 will be updated from 7% to 5.5% of the contract value.

For each of the above contracts, if the open interest reaches 30,000 lots (two-sided) at the market close, the trading margin rate shall return to 7% since the daily clearing process begins.

In the case that the above adjusted trading margin rates vary from other trading margin rates prescribed in the INE’s rules, the higher ones will prevail. Please refer to Risk Management Rules of the Shanghai International Energy Exchange for implementing other provisions concerning the trading margin requirements.

In the event of any inconsistency between the Chinese version and the English translation, the Chinese version shall prevail.

       Shanghai Futures Exchange

July 31, 2018