NOTIFICATION ON THE LAUNCH OF MOCK TRADING OF HOT-ROLLED COIL FUTURES

Updated on Mar 11,2014

NOTIFICATION ON THE LAUNCH OF MOCK TRADING OF HOT-ROLLED COIL FUTURES

FROM: The Shanghai Futures Exchange

TO: All Members

SUBJECT: Notification on the Launch of Mock Trading of Hot-rolled Coil Futures

FILING SERIAL: SQBF [2014] No. 18

March 6, 2014

In order to ensure the successful listing of hot-rolled coild futures and intensify futures investor education, we will initiate the mock trading of hot-rolled coil futures. We expect our members and customers to develop a sound understanding of futures market and increase awareness of risk prevention with respect to hot-rolled coil futures through active participation in the mock trading. Details are as follows:

1. The mock trading of hot-rolled coil futures is beginning on March 7, 2014, with its trading hours from 9:00—11:30 a.m. and 1:30—3:00 p.m.

2. The benchmark price for mock trading of the listed hot-rolled coil futures is set at RMB 3360/ton.

3. The margin requriements for mock trading of hot-rolled coil futures contract is tentatively set at 6% of the contract value, and the price limit tentatively at 4%. On the opening day of mock trading, the price limit is two times the tentative price limit (within 8% above or below the benchmark price).

4. The transaction fee for mock trading of hot-rolled coil contract is tentatively set at 0.08% of the turnover.

5. We have opened a website for mock trading, and enabled the account-opening function for customer to conduct mock trading on March 6, 2014. Information on mock trading and the appendix to this notification are available for downloading at the website.(China Telecom: http://124.74.244.154; China Unicom: http://220.248.39.154)

6. Customers participate in mock trading via the Internet. See the appendix for the mock trading rules and the website for the mock trading user manual.

7. Customers need to open account for the mock trading on the Internet. Once they have obtained the password and downloaded customer trading software, they can log on to the mock trading system for such trading. For details, see the website.

8. Our service hotline during the mock trading:

Jia Peishan, Technical Operation & Maintenance Center at 021-68400023 or jia.ps@shfe.com.cn

Liu Chang, Gold & Steel Department at 021-20616151 or liu.chang2@shfe.com.cn

Hu Yiyan, Trading Department at021-68400359 or hu.yy@shfe.com.cn

Appendix: Detailed Rules for Mock Trading of Hot-rolled Coil Futures