FROM: The Shanghai Futures Exchange

TO: All Members

CC: General Office and Futures Supervision Department of China Securities Regulatory Commission

SUBJECT: Notice on Market Risk Control during the New Year’s Day Holiday 2016

The New Year’s Day Holiday 2016 is approaching. According to the notice on holiday schedule and market close, the Exchange’s futures markets will be closed from January 1^st through January 3rd.

Given the fairly many uncertainties that may affect the smooth operation of the market, all members of SHFE should be well prepared for risk control during this holiday, duly increase margin requirement based on investors’ position and risk level, strengthen the management over withdrawal and deposit of investor’s funds, remind investors of the importance of prudent trading and rational investment, and attach importance to technical system maintenance and IT network safety during the holiday to ensure smooth market operation.