February 20, 2012

All members,

In order to better promote the real economy, improve the hedging position approval efficiency, and facilitate the functions of futures market, we will implement the amendment of Guidelines For Hedging Business of Shanghai Futures Exchange and launch the “SHFE electronic management system for hedging positions” on March 16, therefore, we decide to convene an online video conference with the topic of “implementation issues of the amendment of Guidelines For Hedging Business. We hereby notify the relevant issues as follows:

I. Time, Location, and Form of Conference

Time: 15:30-17:00 PM, February 27, 2012 (Monday)

Location: Headquarters and sales department conference rooms of all members

Form: All members shall watch the online video on their own

II. Participants

(I) All futures companies’ general manager or deputy general manager in charge of trading, clearing and delivery, chief risk officer (including candidate), head of the relevant departments and personnel involved in hedging business;

(II) All non-futures members’ deputy general manager in charge of futures business, head of the relevant department and personnel involved in hedging business;

III. Conference Contents

(I) Exchange leader’s speech;

(II) Explanation on the amendment of Guidelines For Hedging Business of Shanghai Futures Exchange； (III) Application process and cautions on hedging positions;

(IV) Instructions on “SHFE electronic management system for hedging positions”.

IV. Testing of Online Video Technology

In order to ensure the success of the conference, we will test the online video technology at 10 AM on February 27. All members that have opened online video shall assign a person to check the technology testing mails and coordinate with the testing. Members failing to receive the mails or open online video shall call the service hotline 4006789657 or call 010-85862323 extension 636 to open online video and prepare for the testing as soon as possible.

It is hereby notified as above.