To: All Investors

Filing Serial: SQF [2013] No. 167

October 30, 2013

In order to provide assistance to implementation of the Spread Trading Rules and the Amendments to Related Handling Standards and Procedures Applicable to SHFE Provisional Regulations on Supervisory Control of Abnormal Translations (SQF (2013) No. 166) (henceforth as the “ Handling Standards and Procedures”), the Exchange hereby issues the Position Limit for Non-hedging Positions ( henceforth as the “ Non-hedging” positions):

Ⅰ. The Non-hedging positions held by Non-FCM Member or customer shall not surpass the total of the size as prescribed in the proportion of position limit (or the position limits) for such futures contract in different periods of time plus the spread position of the same periods of time.

Ⅱ.On the last trading day of each month, for contracts that, in the following month, will turn into the contract of the 1st month prior to the delivery month (for fuel oil, it refers to the contract of the 2nd month prior to the delivery month) and the delivery month contract (for fuel oil, it refers to the contract of the 1st month prior to the delivery month), the position limits will be set at the total of the size as prescribed in the proportion of position limit (or the position limits) for such futures contract in the following month plus the corresponding spread position in the following month.

Ⅲ. The identified account group with actual control relationship will be treated as the same customer by the Exchange, and the position limits for the said customer’s non-hedging positions after consolidation will be set at the total of the size as prescribed in the Risk Management Rules of the Shanghai Futures Exchange (henceforth as “the Risk Management Rules”) for the proportion of position limit ( or the position limits) for one customer’s futures contract in different periods of time plus the corresponding approved spread positions of account group’s members in such period. The account group involving actual control relationship with Non-FCM member will be treated as one Non-FCM member, and the position limits for the said Non-FCM member’s non-hedging positions after consolidation will be set at the total of the size as prescribed in the Risk Management Rules for the proportion of position limit ( or the position limits) for one Non-FCM member’s futures contract in different periods of time plus the corresponding approved spread positions of account group’s members in such period.

Customers eligible for hedging application may satisfy their actual needs by submitting the application for hedging position to the Exchange.

Ⅳ. If after consolidation, the non-hedging positions for a group of accounts with actual control relationship exceeds the position limits set by the Exchange, such consolidated position will be considered the abnormal transactions, making the Exchange resort to the regulatory actions as prescribed in the Risk Management Rules and the Handling Standards and Procedures.

This Notification will take effect on December 2, 2013.