FROM: The Shanghai Futures Exchange

SUBJECT: Notice on Investigation and Punishment against Law and Rule Violations during January 2017

FILING SERIAL:  [2017] No. 9

February 14, 2017

The Exchange has been putting its efforts in investigation and punishment against law and rule violations as per relevant laws and rules, so as to truly enchance risk prevention, intensify frontline regulation, normalize futurres transaction behaviours and protect the legitimate rights of particpants in futures market. The enforcement against such violations during January 2017 is as follows:

In January, there were totally 9 abnormal transaction behaviours under the Exchange’s investigation for causing abnormal price fluctuations. Among which, 3 cases suspected of being in violation of trading rules were under formal investigation. 

There were totally 82 abnormal transaction behaviors which triggered the disciplinary action by the Exchange against them, including 32 cases for exceeding the limit of self-matching deals, 48 cases for exceeding the limit of frequent placing and cancellation of orders, and 2 cases for exceeding the limit of placing and cancellation of large-amount orders. As for 2 clients falling into the scope of abornmal transaction as defined in the Exchange’s relevant rules, they were imposed public critism and restristactions on opening new positions. 

There was totally one (1) case that triggered the disciplinary action by the Exchange for execeeding the trading limit of account under de facto control. 2 clients involved in such case were imposed public critisim and restrictios on opening new positions.