(Adopted at the 22th meeting of the 8th Board of Governors on January 2, 2025; issued by Announcement [2025] No.5 on January 7, 2025;effective as of the date of issuance)

Chapter 1 General Provisions

Article 1 These Rules are made in accordance with the Bylaws of Zhengzhou Commodity Exchange (“Bylaws”) and the Trading Rules of Zhengzhou Commodity Exchange (“Trading Rules”) for the purposes of strengthening the regulation of the futures market, regulating futures trading activities, and protecting the lawful rights and interests of futures market participants.

Article 2 A “violation” as referred to in these Rules means a breach of the Bylaws, Rules of the Zhengzhou Commodity Exchange (the “Exchange”), or other applicable provisions by a futures market participant or any of its staff members.

The “futures market participants” in the preceding paragraph include:

(1) Members;

(2) overseas brokers;

(3) market makers;

(4) clients;

(5) Certified Warehouses and Board Delivery service providers;

(6) Futures Margin Depository Banks (“Depository Banks”);

(7) Designated Quality Inspection Agencies;

(8) IT service providers; and

(9) other participants of the futures market recognized by the Exchange.

Article 3 The Exchange investigates, identifies, and handles violations in a fair, impartial, and fact-based manner.

Article 4 The Exchange may reduce, mitigate, or exempt the penalty for a futures market participant if the futures market participant has already been sanctioned by an administrative or judicial authority for its violation.

Article 5 These Rules apply to the futures trading-related activities conducted at the Exchange.

Chapter 2 Inspection

Article 6 “Inspection” as referred to in these Rules means the check or investigation on the business activities of futures market participants conducted by the Exchange in accordance with its Rules and other relevant provisions.

Inspection may be conducted on-site or off-site.

Article 7 The Exchange may exercise the following powers during an inspection:

(1) accessing and copying information and materials related to futures trading;

(2) requiring a futures market participant to furnish such materials as its annual report or independent audit report, and requiring an overseas broker or overseas client to furnish the regulatory report issued by the relevant overseas regulatory authority;

(3) investigating, collecting evidence, and holding a meeting with a futures market participant;

(4) requiring a futures market participant to submit a declaration, statement, explanation, or clarification on a matter;

(5) looking into the futures-related bank account of a futures market participant;

(6) examining the trading, clearing, financial, and other futures-related computer systems of a futures market participant;

(7) stopping, correcting, and handling a violation; and

(8) exercising other powers provided by laws, regulations, ministry-level rules, and the Bylaws and Rules of the Exchange.

Article 8 Futures market participants shall accept the supervision of the Exchange and cooperate with its inspections.

Article 9 The Exchange may, in accordance with its Rules and other applicable provisions, check the business activities of futures market participants on a regular or occasional basis.

Article 10 The Exchange provides channels for receiving complaints and tips. The person submitting a complaint or tip shall do so under his true, adequately disclosed identity. The Exchange shall keep the identity information confidentiality upon the request of that person.

Article 11 The Exchange shall conduct an investigation upon obtaining any lead on a violation, whether identified during day-to-day supervision, received from a complaint or tip, referred by the futures regulatory authority, judicial authority, or other government agencies, or otherwise. The Exchange shall open a case and notify the party concerned if, in its opinion, a disciplinary sanction is justified for the suspected violation, or may take such self-regulatory measures against the party concerned as placing it on the supervisory watchlist, issuing an oral warning, issuing a written warning, arranging for a regulatory meeting, and requiring a written undertaking if a violation is suspected but the circumstances are minor and have not adversely impacted the futures market.

Article 12 The Exchange shall assign dedicated persons to investigate any violation for which a case has been opened. Investigation and evidence collection shall be conducted in the presence of at least two (2) investigators, who shall present their employee IDs or the certificate issued by the Exchange.

Article 13 Any investigator who believes he has an interest in a case or may otherwise undermine the impartial handling of the case shall apply to withdraw from the case.

Any subject of investigation who believes that an investigator has an interest in his case which may undermine the impartial handling of the case, is entitled to request for the withdrawal of the investigator.

The Exchange may order an investigator to withdraw from a case when and as it deems it necessary.

The withdrawal of an investigator is determined by the head of the Exchange’s inspection department. The withdrawal of the head of the inspection department is determined by the President of the Exchange.

Article 14 “Evidence” includes documentary evidence, physical evidence, statements of the parties concerned, testimonies of witnesses, investigation transcripts, expert opinions, audiovisual materials, electronic data, and all other materials that can establish the facts of a case.

Evidence must be substantiated by an investigation to be a basis for the decision of a case.

Article 15 A written investigation transcript shall be made whenever the subject under investigation is questioned by an investigator. Each investigation transcript shall be checked by the subject under investigation and, if no issue is identified, signed by both the subject under investigation and the investigator. If the subject under investigation refuses to sign, the investigator shall note on the investigation transcript the reason for such refusal.

A written record shall be made on the process of collecting such evidence as documentary evidence, physical evidence, audiovisual materials, and electronic data. Such record shall indicate when and where the evidence was collected and be affixed with the signature or seal of the person providing the evidence.

Expert opinions shall be made by a competent organization recognized by the China Securities Regulatory Commission (“CSRC”) or the Exchange, and shall be affixed with official seal of the organization and the signatures of the relevant experts.

Article 16 Investigators shall strictly abide by the confidentiality rules and shall not abuse their powers when conducting checks or investigations.

Futures market participants shall strictly abide by the confidentiality rules when undergoing checks or investigations by the Exchange.

Article 17 Where a futures market participant is under a case investigation for a suspected illegal or non-compliant act, the Exchange may, before making its decision, take the following restrictive measures against the futures market participant to contain the impact of the act and ensure the decision can be carried out:

(1) suspending it from opening new trading codes;

(2) restricting Funds Withdrawals;

(3) restricting Funds Deposits;

(4) restricting the delivery activities of a Certified Warehouse or Board Delivery service provider, the margin depository business of a Depository Bank, or the IT services of an IT service provider;

(5) lowering its position limit, hedging quota, or limit on the number of standard warehouse receipts held;

(6) restricting the opening of new positions;

(7) raising the margin requirement;

(8) requiring the close-out of positions within a prescribed time limit; and

(9) carrying out forced liquidation.

The Exchange shall promptly file a report with the CSRC upon taking restrictive measure (7), (8), or (9).

The Exchange shall notify the subject of a restrictive measure through a documented method such as a written notice or recorded telephone call and shall state the reasons for taking the measure.

Chapter 3 Penalties for Violations

Article 18 Multiple acts of violation will be decided on individually with the penalties combined. Repeat offenders are subject to heavier or aggravated penalties.

Where any violation prescribed in these Rules is committed by an organization, the Exchange may take actions against the direct supervisor and other individuals with direct responsibilities within the organization.

Article 19 Any futures brokerage Member (“FB Member”) that commits any of the following acts in violation of the brokerage rules will be ordered to make corrections and have the unlawful gains confiscated, and, based on the severity of the violation, may be subject to such disciplinary sanctions as a warning, public reprimand, public censure, forced liquidation, suspension from opening new positions for not more than twelve (12) months, suspension of part of its futures or options business, revocation of Membership, and declaration as a Prohibited Market Participant, with an optional additional fine of not more than RMB 500,000 if there are no unlawful gains or if the amount is less than RMB 100,000, and not less than one (1) time but not more than five (5) times the amount of the unlawful gains if the amount is RMB 100,000 or more:

(1) engaging in futures trading for a client who has not completed the account opening procedures or has not done so in accordance with relevant rules;

(2) violating the trading code system;

(3) failing to fulfill the duty of review as required and opening an account for an ineligible client;

(4) failing to fulfill the obligations of investor suitability management as required;

(5) failing to truthfully inform a client of the risks of futures trading or to sign the Risk Disclosure Statement;

(6) making profit guarantees to a client or privately agreeing with a client to share the profits, risks, or losses from trading;

(7) trading for itself or others in violation of applicable rules;

(8) failing to trade in accordance with client instructions; or deliberately blocking, delaying, or altering client orders; or inducing or forcing a client to trade;

(9) failing to route client orders to the Exchange for private execution;

(10) failing to segregate its own funds with client funds;

(11) delaying Funds Deposits or Funds Withdrawals by a client without justification;

(12) permitting a client to open a position with insufficient margin or option premium, or accepting the exercise request of an option buyer with insufficient funds;

(13) diverting or permitting a third party to divert client funds or drawing funds from different accounts;

(14) fabricating or intentionally spreading false or misleading information;

(15) divulging client instructions or other confidential trading information;

(16) failing to provide a client with trading results or settlement statements; or

(17) committing any other act that violates the brokerage rules of the CSRC or the Exchange.

Article 20 Any Member that commits any of the following acts will be ordered to make corrections and, based on the severity of the violation, may be subject to such disciplinary sanctions as a warning, public reprimand, public censure, suspension from opening new positions for not more than twelve (12) months, suspension of part of its futures or options business, and revocation of Membership:

(1) failing to fulfill its reporting obligations as required by the Exchange;

(2) failing to submit financial statements and other relevant materials to the Exchange within the prescribed time limit;

(3) failing to fulfill its reporting obligations in accordance with the large trader reporting regime or submitting false reports or withholding reportable information;

(4) failing to assist the Exchange in taking restrictive measures, disciplinary sanctions, or other self-regulatory measures against any of its clients;

(5) failing to pay the annual membership fee and other fees and charges on time and as required by the Exchange;

(6) failing to preserve trading, clearing, delivery, financial, accounting, and other relevant materials as required;

(7) forging, tampering with, or buying or selling any documentation or approval document;

(8) privately transferring or disposing of its Membership or trading seat;

(9) engaging in money laundering, malicious currency exchange, or other illegal activities under the pretext of futures trading;

(10) failing to collect information on and authenticate connections from clients’ trading terminals as required;

(11) violating the rules of the Exchange regarding the emergency trading floor;

(12) failing to fulfill its client management obligations as required;

(13) failing to fulfill its filing obligations with respect to overseas brokers as required; or

(14) committing any other act that violates the laws, regulations, or ministry-level rules of the People’s Republic of China (“PRC”) or the Bylaws or applicable provisions of the Exchange.

Article 21 Any Member that, without justification, fails to carry out forced liquidation within the prescribed time limit may, based on the severity of the action, be subject to such disciplinary sanctions as a warning, public reprimand, public censure, suspension from opening new positions for not more than twelve (12) months, and suspension of part of its futures or options business, with an optional additional fine of not more than RMB 500,000.

Article 22 Any Member that commits any of the following acts in violation of the clearing rules of the Exchange will be ordered to make corrections and, based on the severity of the violation, may be subject to such disciplinary sanctions as a warning, public reprimand, public censure, suspension from opening new positions for not more than twelve (12) months, suspension of part of its futures or options business, and revocation of Membership, with an optional additional fine of not more than RMB 500,000:

(1) failing to deposit a sufficient amount of margin with the prescribed time limit;

(2) entering a false or incomplete record in a settlement report, monthly trading report, or other clearing and settlement documents and materials;

(3) failing to manage margin through a segregated account;

(4) failing to complete daily clearing as required;

(5) fabricating or tampering with trading records, accounting statements, or books;

(6) issuing false VAT invoice or forging other types of instruments;

(7) failing to use the transaction fees reduced by the Exchange as required; or

(8) engaging in any other activity that violates the clearing rules of the Exchange.

Article 23 Any overseas broker that commits any of the following acts will be ordered to make corrections and, based on the severity of the violation, may be subject to such disciplinary sanctions as a warning, public reprimand, public censure, and revocation of overseas broker status:

(1) refusing to cooperate with the Exchange in investigating the violation of a client;

(2) failing to fulfill the obligations of investor suitability management as required; or

(3) violating any other rules of the Exchange regarding overseas brokers.

Where an overseas broker falls under any of the circumstances above and fails to make corrections within the prescribed time limit, or is suspected of an illegal or non-compliant act or incurs a significant risk that may undermine the soundness of the futures market or harm the lawful rights and interests of clients, the Exchange may require the relevant FB Member to suspend or terminate its business relationship with the overseas broker.

Following such suspension or termination, the overseas broker shall not acquire new clients or open new positions, and shall assist its clients to transfer their positions to other brokerage firms upon their request.

Article 24 Any Member, overseas broker, or client that provides or facilitates the provision of false materials in a hedging quota application or violates other rules of the Exchange regarding hedging activities will be ordered to make corrections and have the unlawful gains confiscated, and, based on the severity of the violation, may be subject to such disciplinary sanctions as a warning, public reprimand, public censure, adjustment or cancellation of hedging quota, suspension from applying for hedging quota, suspension from opening new positions for not more than twelve (12) months, suspension of part of its futures or options business, forced liquidation, revocation of relevant approvals, and declaration as a Prohibited Market Participant, with an optional additional fine of not more than 5% of the total value of the hedging quota approved.

Article 25 Any non-futures brokerage Member (“Non-FB Member”), market maker, client, or other futures market participant that commits any of the following acts in violation of the position holding rules of the Exchange will be ordered to make corrections and have the unlawful gains confiscated, and, based on the severity of the violation, may be subject to such disciplinary sanctions as forced liquidation, a warning, public reprimand, public censure, suspension from opening new positions for not more than twelve (12) months, suspension of part of its futures or options business, and revocation of relevant approvals, with an optional additional fine of not more than 5% of the total value of the positions held in violation:

(1) evading the Exchange’s position limit by splitting positions between multiple accounts or other improper means;

(2) being subject to forced liquidation by the Exchange for holding positions beyond the position limit, except as a result of delayed close-out due to the price limit or other market factors;

(3) holding positions beyond the position limit in the delivery month or near-delivery month of a contract; or

(4) engaging in any other activity that violates the position holding rules of the Exchange.

Any FB Member or overseas broker that fails to inform clients of the position holding rules of the Exchange in a timely, accurate, and complete manner may be subject to disciplinary sanctions in reference to the preceding paragraphs.

Article 26 Any Non-FB Member, market maker, client, or other futures market participant that evades and trades beyond the trading limit of the Exchange will be ordered to make corrections and have the unlawful gains confiscated, and, based on the severity of the violation, may be subject to such disciplinary sanctions as a warning, public reprimand, public censure, forced liquidation, suspension from opening new positions for not more than twelve (12) months, suspension of part of its futures or options business, and revocation of relevant approvals, with an optional additional fine of not more than RMB 500,000.

Article 27 Any Non-FB Member, client, or other futures market participant that commits any of the following acts in violation of the rules of the Exchange on accounts linked by actual control relationship will be ordered to make corrections and, based on the severity of the violation, may be subject to such disciplinary sanctions as a warning, public reprimand, public censure, suspension from opening new positions for not more than twelve (12) months, suspension of part of its futures or options business, and revocation of relevant approvals, with an optional additional fine of not more than RMB 500,000:

(1) having and refusing to truthfully report an actual control relationship;

(2) refusing to respond or truthfully respond to the questions or investigations of the Exchange without justification, or withholding facts or evading questions or investigations;

(3) providing false materials to deregister an actual control relationship; or

(4) engaging in any other activity that violates the rules of the Exchange on accounts linked by actual control relationship.

Any Member or overseas broker that fails to fulfill its obligations in respect of client accounts linked by actual control relationship, or induces or assists a client to provide false materials or withhold facts, may be subject to disciplinary sanctions in reference to the preceding paragraphs.

Article 28 Any futures market participant that commits any of the following acts in violation of the rules of the Exchange on information or computer system management will be ordered to make corrections and have the unlawful gains confiscated and, based on the severity of the violation, may be subject to such disciplinary sanctions as a warning, public reprimand, public censure, suspension from opening new positions for not more than twelve (12) months, suspension of part of its futures or options business, and revocation of relevant approvals, with an optional additional fine of not more than RMB 500,000:

(1) releasing the Exchange’s information without the permission of the Exchange;

(2) disrupting or failing to use the trading, clearing, delivery, standard warehouse receipt, or other systems of the Exchange as required and thereby affecting the normal operation of the systems;

(3) violating the rules of the Exchange on connection to information systems; or

(4) engaging in any other activity that violates the rules of the Exchange on information or computer system management.

Article 29 Any Non-FB Member, overseas broker, or client that violates the rules of the Exchange in a standard warehouse receipt transaction will be ordered to make corrections and, based on the severity of the violation, may be subject to such disciplinary sanctions as a warning, public reprimand, public censure, suspension from standard warehouse receipt transactions, and revocation of relevant approvals, with an optional additional fine of not more than RMB 500,000.

Article 30 Any futures market participant that commits any of the following acts in violation of the trading code rules of the Exchange will be ordered to make corrections and have the unlawful gains confiscated and, based on the severity of the violation, may be subject to such disciplinary sanctions as a warning, public reprimand, public censure, forced liquidation, suspension from opening new positions for not more than twelve (12) months, suspension of part of its futures or options business, and revocation of relevant approvals, with an optional additional fine of not more than RMB 500,000:

(1) providing or assisting in the provision of false materials to open account;

(2) as a market maker, permitting others to use its market-maker trading code under a leasing, lending, or contracting arrangement; or using the market-maker trading code for transactions irrelevant to market making;

(3) making a market on behalf and with the market-maker trading code of another market maker;

(4) stealing, swindling, or borrowing another futures market participant’s trading code to commit violations;

(5) lending out or failing to secure its trading code, thereby allowing another person to use and commit violations with the trading code; or

(6) engaging in any other activity that violates the trading code rules of the Exchange.

Article 31 Any futures market participant that commits any of the following acts in violation of the trading rules will be ordered to make corrections and have the unlawful gains confiscated, and, based on the severity of the violation, may be subject to such disciplinary sanctions as a warning, public reprimand, public censure, forced liquidation, suspension from opening new positions for not more than twelve (12) months, suspension of part of its futures or options business, revocation of relevant approvals, and declaration as a Prohibited Market Participant, with an optional additional fine of not more than RMB 500,000 if there are no unlawful gains or if the amount is less than RMB 100,000, and not less than one (1) time but not more than five (5) times the amount of the unlawful gains if the amount is RMB 100,000 or more:

(1) creating an advantage in funding, position, or information alone or in collusion with others to trade in quick succession or jointly with others to influence or attempt to influence the futures price or trading volume;

(2) evading and holding positions beyond the Exchange’s position limit alone or in collusion with others to influence or attempt to influence the futures price or to disrupt the market;

(3) trading with a partner at or by previously agreed or pre-arranged time, price, or method to influence or attempt to influence the futures price or trading volume or to shift funds, disrupt the market, or seek improper interests;

(4) submitting orders with no intention to trade, trading in opposite to submitted orders, or otherwise seeking unlawful interest to influence or attempt to influence the futures price or trading volume or to mislead other market participants, increase system load, or disrupt the market;

(5) trading between a group of accounts under its actual control to influence or attempt to influence the futures price or trading volume or to shift funds, disrupt the market, or seek improper interests;

(6) as a person with or having unlawfully obtained inside information on futures trading that has a material impact on futures prices, using such inside information, or through divulgation allowing it to be used, for futures trading before it is public disclosed;

(7) stockpiling physicals, taking up the storage capacity of a Certified Warehouse without load-in, or controlling a large number of standard warehouse receipts to influence or attempt to influence the futures market or delivery activities;

(8) fabricating or spreading false or misleading information or uncertain but material information to influence or attempt to influence the futures price or trading volume, and conducting relevant trades or seeking improper interests;

(9) making or giving public comments, predictions, or investment advice on a contract or the underlying asset to influence or attempt to influence the futures price or trading volume while trading in opposite to its comments, predictions, or investment advice or seeking improper interests;

(10) placing trading orders through an algorithmic trading program in a manner that undermines the security of the Exchange’s system or disrupts the normal course of trading;

(11) disrupting the market through non-bona fide exchange of futures for physical transactions; or

(12) engaging in any other activity in violation of the trading rules of the CSRC or the Exchange to influence or attempt to influence the futures price or trading volume or to disrupt the futures market.

Article 32 Any futures market participant that fabricates or spreads false or misleading information which damages the reputation of the Exchange or disrupts the futures market will be ordered to make corrections and, based on the severity of the violation, may be subject to such disciplinary sanctions as a warning, public reprimand, public censure, forced liquidation, suspension from opening new positions for not more than twelve (12) months, suspension of part of its futures or options business, revocation of relevant approvals, and declaration as a Prohibited Market Participant, with an optional additional fine of not more than RMB 500,000.

Article 33 The Exchange has the right to adjust the current day’s settlement price or final settlement price if a futures market participant:

(1) trades between a group of accounts under its actual control which has significantly affected the final settlement price or the results of exercise of option contracts; or

(2) commits any other violation that causes an abnormal price movement in the futures market or an abrupt, sharp deviation from the market price, which has significantly affected the final settlement price or the results of exercise of option contracts.

Article 34 Where through investigation the Exchange suspects that a futures market participant has committed any of the following illegal acts, it shall promptly file a report with the CSRC and open a case for inspection, and may additionally take such restrictive measures against the futures market participant as restricting Funds Withdrawals and restricting the opening of new positions:

(1) market manipulation;

(2) insider trading;

(3) fabricating or spreading false information; or

(4) any other suspected illegal act.

Article 35 Any Certified Warehouse that commits any of the following acts will be ordered to make corrections and have the unlawful gains confiscated, and, based on the severity of the violation, may be subject to such disciplinary sanctions as a warning, public reprimand, public censure, suspension of part of its delivery business, revocation of its Certified Warehouse status, and declaration as a Prohibited Market Participant, with an optional additional fine of not more than RMB 500,000 if there are no unlawful gains or if the amount is less than RMB 100,000, and not less than one (1) time but not more than five (5) times the amount of the unlawful gains if the amount is RMB 100,000 or more:

(1) participating in futures trading which is prohibited by the regulations of the PRC;

(2) issuing false warehouse receipts;

(3) making a declaration, statement, explanation, or clarification that is false or misleading or withholds or omits important facts;

(4) moving, disposing of, or stealing and selling deliverables without permission;

(5) divulging futures-related storage information that should be kept confidential or spreading false information to mislead market participants;

(6) failing to report to the Exchange in a timely manner, or to publicly announce in accordance with the requirements of the Exchange, any change in the warehouse premises or such risk events as the seal-up or seizure of deliverables or storage facility by the judicial authority or any serious damage to or loss of deliverables;

(7) influencing or attempting to influence the futures price in collusion with others;

(8) permitting commodities of differing designations, trademarks, specifications, or qualities to be registered under a standard warehouse receipt;

(9) storing or delivering deliverables that are inconsistent with the documentations;

(10) storing or delivering deliverables without the required certificates or with missing certificates;

(11) storing or delivering deliverables in a bundle number, count number, or packaging that does not meet the requirements of the Exchange;

(12) issuing a standard warehouse receipt without completing the prescribed inspection items;

(13) failing to review the information in the standard warehouse receipt system or to update storage capacity or other data in a timely and accurate manner which has led to severe consequences;

(14) sending or receiving wrong commodities;

(15) causing quality degradation or loss of the stored commodities as a result of improper care;

(16) damaging the packaging or the commodities during transport, loading or unloading, or stacking;

(17) overcharging for delivery;

(18) creating obstacles to cause the buyer or the seller to default;

(19) restricting or intentionally delaying the load-in or load-out of deliverables which is prohibited by the futures delivery rules;

(20) refusing or obstructing the lawful and compliant supervision and examination by the Exchange;

(21) failing to provide the minimum guaranteed storage capacity in accordance with the relevant agreement without justification;

(22) failing to make delivery without justification or to cooperate with Designated Quality Inspection Agencies during inspections; or

(23) committing any other act that violates the rules of the CSRC or the Exchange.

Any Board Delivery service provider that commits any of the foregoing violations will be penalized in accordance with the preceding paragraphs.

Article 36 Any futures market participant that defaults on physical delivery or employs improper means to disrupt the physical delivery process may, based on the severity of the violation, be subject to such disciplinary sanctions as a warning, public reprimand, public censure, suspension from opening new positions for not more than twelve (12) months, and suspension of part of its futures or options business, with an optional additional fine of not more than RMB 500,000.

Article 37 Any Designated Quality Inspection Agency that commits any of the following violations will be ordered to make corrections and, based on the severity of the violation, may be subject to such disciplinary sanctions as a warning, public reprimand, public censure, suspension of its futures commodity inspection business, and revocation of its Designated Quality Inspection Agency status, with an optional additional fine of not more than RMB 500,000:

(1) conducting measurement or testing in violation of applicable rules;

(2) issuing or assisting in the issuance of false inspection reports;

(3) refusing to cooperate with a Certified Warehouse or commodity owner in the timely inspection of commodities without justification, which has disrupted the normal load-in or load-out process; or

(4) engaging in any other activity that violates the rules of the Exchange for Designated Quality Inspection Agencies.

Article 38 Any Depository Bank that fails to perform its obligations specified under the Futures Clearing Rules of Zhengzhou Commodity Exchange, Rules of Zhengzhou Commodity Exchange on Designated Depository Banks, and other Rules of the Exchange will be ordered to make corrections and, based on the severity of the violation, may be subject to such disciplinary sanctions as a warning, public reprimand, public censure, suspension of part of its futures margin depository business, and revocation of its Depository Bank status. The Depository Bank may additionally be fined not more than RMB 500,000.

Article 39 Any futures market participant that disrupts orderly trading through any means will be ordered to make corrections and, based on the severity of the violation, be subject to such disciplinary sanctions as a warning, public reprimand, public censure, suspension from opening new positions for not more than twelve (12) months, suspension of part of its futures or options business, revocation of relevant approvals, and declaration as a Prohibited Market Participant, with an optional additional fine of not more than RMB 500,000.

Article 40 Any futures market participant that commits any of the following acts will be ordered to make corrections and, based on the severity of the violation, may be subject to such disciplinary sanctions as a warning, public reprimand, public censure, suspension from opening new positions for not more than twelve (12) months, suspension of part of its futures or options business, revocation of relevant approvals, and declaration as a Prohibited Market Participant, with an optional additional fine of not more than RMB 500,000:

(1) refusing, obstructing, delaying, or otherwise not cooperating with the checks or investigations of the Exchange or violating its confidentiality obligations;

(2) failing to cooperate with or participate in an investigation, check, or meeting at the time or by the means specified by the Exchange without justification;

(3) making a declaration, statement, explanation, or clarification that is false, misleading, or omitting important facts; or providing false documents, materials or information;

(4) failing to observe or enforce any disciplinary sanction, restrictive measure, or other self-regulatory measure imposed by the Exchange; or

(5) failing to observe the risk warning regime or the rectification requirements of the Exchange.

Chapter 4 Decision and Enforcement

Article 41 Upon verifying that a violation is substantiated by clear facts and evidence, The Exchange will issue a decision in accordance with the Bylaws, the Trading Rules, and these Rules and impose disciplinary sanctions or other self-regulatory measures on the futures market participants committing the violation.

Disciplinary sanctions are decided and carried out by the Exchange; other self-regulatory measures are decided and carried out by the Exchange or the department designated by the Exchange.

Article 42 The Exchange establishes a disciplinary review committee to hear cases in which disciplinary sanction is proposed.

Article 43 The Exchange implements a hearing procedure for disciplinary sanctions. With respect to the relevant parties eligible for a disciplinary sanction hearing, the Exchange shall inform them of their rights to request for a hearing, and shall organize the hearing upon receiving such a duly submitted request.

The conditions under which a hearing may be requested and the specific rules for such hearings will be separately prescribed by the Exchange.

Article 44 The disciplinary sanctions of revocation of Membership and declaration of a Prohibited Market Participant shall be decided by the Board of Governors of the Exchange.

Article 45 The Exchange shall issue a decision of disciplinary sanction in writing upon deciding to impose a disciplinary sanction.

A decision of disciplinary sanction shall contain the following information:

(1) name and domicile of the party concerned;

(2) facts and evidence of the violation;

(3) types and grounds of the disciplinary sanctions given;

(4) method of compliance and duration for the disciplinary sanction;

(5) method and deadline for requesting for a decision review; and

(6) date of the disciplinary sanction decision.

Article 46 The Exchange shall serve the decision of disciplinary sanction to the parties involved and submit a copy thereof to the CSRC. The decision of disciplinary sanction may be served by the Exchange directly or by another organization it has delegated, and by either mail, electronic message, or public notice.

If by mail, the decision is deemed served in five (5) trading days to a domestic address and in ten (10) trading days to an overseas address from the date of mailing. If by electronic message, the decision is deemed served at the moment the message enters the specified system of the party concerned.

Where the party concerned cannot be contacted, is hiding from or evading the service of decision, or cannot be served by the other methods, the Exchange may release a public notice on its website and the decision is deemed served after ten (10) business days from the date of notice.

For any decision served by two or more methods, the date of service is the earliest of the service dates of those methods.

The mailing address, fax number, telephone number, email address, and other contact information of a party recorded in the Unified Account Management System of China Futures Market Monitoring Center Co., Ltd. are deemed the valid contact information for the party. Any party whose contact information is incorrect or who has failed to notify the Exchange in writing of any change in such information shall bear the consequences of the failed delivery of a decision of disciplinary sanction.

The official documents, notices, and materials of the Exchange relating to the investigation and handling of a violation may be similarly served in accordance with the preceding paragraphs.

Article 47 A decision of disciplinary sanction issued by the Exchange takes effect on the date of service.

Any party dissatisfied with a decision of disciplinary sanction may submit a written request for review to the Exchange within ten (10) trading days as of the effective date of the decision. The enforcement of the decision is not suspended during the review.

Article 48 The Exchange shall, within two (2) months as of the date of receiving a request for review, make its decision on the disciplinary sanctions to be reviewed. The decision from review is final.

Article 49 Futures market participants shall comply with or provide cooperation in the compliance with the decisions of disciplinary sanction issued by the Exchange, or the Exchange may enforce such decisions.

Article 50 Any fine or confiscated money specified in a decision of disciplinary sanction shall be paid or forfeited by the party concerned to the account designated by the Exchange within five (5) trading days as of the effective date of the decision.

Any fine or confiscated money to be paid or forfeited by a staff member of a Member or Certified Warehouse shall be paid or transferred by the Member or Certified Warehouse on the staff member’s behalf. Failure by the Certified Warehouse to make such payment or transfer entitles the Exchange to deduct the corresponding amount from its delivery deposit.

A Member or overseas broker shall cooperate with the Exchange in enforcing disciplinary sanctions against clients and market makers by transferring the funds deposited at the Member by such clients and market makers.

Where a futures market participant fails to pay the fine or forfeit the confiscated money within the prescribed time limit, the Exchange may take such actions against it as suspending it from opening new positions and suspending part of its futures or options business until such payment or forfeiture is made.

Article 51 Any person that is declared as a Prohibited Market Participant by the Exchange shall liquidate its positions, wind down its trading activities, and settle the outstanding claims and liabilities within twenty (20) trading days from the effective date of the declaration. Any positions remaining open after this period will be subject to forced liquidation by the Exchange.

Any person that is declared as a Prohibited Market Participant or “unwelcome market participant” by the CSRC or another futures exchange shall not engage in any futures or options activities at the Exchange throughout the validity period of that declaration. Its position holdings at the Exchange will be handled in reference to the preceding paragraph.

Article 52 The Exchange may, in view of the circumstances, publish on its website or by other means the disciplinary sanctions imposed on a futures market participant, and enter the record into the integrity database for securities and futures markets in accordance with the rules of the CSRC.

Chapter 5 Mediation

Article 53 Any dispute between futures market participants over futures-related activities may be resolved by and among themselves or submitted to the Exchange for mediation.

Article 54 Mediation at the Exchange is handled by the Mediation Committee created under the Board of Governors of the Exchange, with permanent office set up within the legal affairs department of the Exchange.

Article 55 Mediation shall be conducted based on clear facts and clear determination of responsibilities and in accordance with the futures trading laws and regulations of the PRC and the rules and regulations of the Exchange.

Article 56 Any disputing party that requests for mediation shall meet the following requirements:

(1) it has filled out a request for mediation;

(2) it is able to provide concrete facts, reasons, and relief being sought; and

(3) the dispute is within the scope of responsibility of the Mediation Committee.

Article 57 Any disputing party that requests for mediation shall submit a written request and the supporting materials. The request for mediation shall include the following information:

(1) the names of the parties in dispute, their ID card number or Unified Social Credit Code, domicile or contact address, telephone number, and other contact information;

(2) the facts of the case, reasons, and the relief being sought; and

(3) the relevant evidence.

Article 58 The Mediation Committee shall, upon receiving a mediation request, carefully review the materials for conformance and inform the requester in writing of whether its request has been accepted.

Article 59 The Mediation Committee will not accept a mediation request if:

(1) the parties in dispute have already filed a lawsuit with a people’s court;

(2) the parties in dispute have already applied to an arbitration institution for arbitration;

(3) one disputing party seeks mediation while the other party is unwilling to do so; or

(4) there is any other circumstance that, in the opinion of the Mediation Committee, warrants the rejection of the request.

Article 60 The Mediation Committee shall complete the mediation within two (2) months of accepting a mediation request. Mediation may be prolonged if additional time is needed due to the complexity of the case and agreed to by the parties in dispute, but shall be terminated by that time if such agreement cannot be reached.

Article 61 The Mediation Committee may terminate the mediation of a dispute if:

(1) the parties in dispute fail to attend the mediation proceedings or exit ongoing proceedings without permission;

(2) the mediation affects the interest of a third party who fails to participate in the proceedings or refuses to accept the outcomes of mediation;

(3) the parties in dispute have filed a lawsuit or applied for arbitration during the mediation process;

(4) one of the parties involved requests for such termination;

(5) no mediation agreement can be reached within the prescribed time limit; or

(6) there is any other circumstance that, in the opinion of the Mediation Committee, warrants such termination.

Article 62 The parties in dispute shall each bear the burden of proof in accordance with relevant rules. The Mediation Committee may investigate and collect evidence when it deems it necessary.

Article 63 The Mediation Committee shall conduct mediation by verifying facts, discerning right from wrong, and respecting the free will of the parties to facilitate an understanding and an agreement between the parties in dispute.

Article 64 Any agreement reached through mediation shall be recorded and made into a mediation agreement, which takes effect upon the signatures of the parties in dispute and of the mediators and the seal of the Mediation Committee.

Article 65 Where no agreement can be reached through mediation, the parties in dispute may apply for arbitration at an arbitration institution or file a lawsuit with a people’s court.

Chapter 6 Ancillary Provisions

Article 66 Unless otherwise provided in any specific provision, such terms as “futures market,” “futures business, service, or activity,” and “futures trading” as used in these Rules also include the options-related activities.

“Certified Warehouses” as referred to in these Rules consist of delivery warehouses and factory warehouses.

Article 67 The terms “or more” and “not more than” as used in these Rules include the given number.

The currency unit in these Rules is RMB. If any matter involves foreign-currency funds, such funds shall be converted into the corresponding RMB amount at the exchange rate of when the relevant act took place.

Article 68 The Exchange reserves the right to interpret these Rules.

Article 69 These Rules take effect on January 7, 2025.

(This English version is for reference ONLY. In case of any inconsistency between the different language versions, the Chinese version prevails.)