FROM: The Shanghai Futures Exchange

SUBJECT: Notice on Enforcement by the Exchange against Rule Violation during 2016

FILING SERIAL:  SQBF [2017] No. 7

January 18, 2017

The enforcement by the Exchange against rule violations during 2016 is as follows:

1. There were totally four (4) rule violation cases that triggered the disciplinary action by the Exchange against them, which belong to accommodation trade between natural person customer and corporate client or between natural person customers, for fund transfer purpose.

2. In accordance with Article 29 of the Enforcement Rules of the Shanghai Futures Exchange, the rule violators, namely one (1) corporate client and senven (7) natural person customers, were imposed disciplinary warning, public criticism and suspension of opening new positions for 2~11 months by the Exchange, and were ordered for correcting the wrong behavior.

All members and investors shall enhance compliance and risk awareness and intensify account management to prevent rule violations against the Exchange.

Appendix: Table of Enforcement against Rule Violations during 2016