(Adopted at the 10th meeting of the 8th Board of Governors on January 4, 2024; issued by Announcement [2024] No.16 on February 6, 2024; changes take effect as of February 6, 2024.)

 

Chapter 1 General Provisions

Article 1 These Detailed Rules are made in accordance with the Trading Rules of Zhengzhou Commodity Exchange and the flat glass futures (“FG”) contract to regulate FG-related activities on the Zhengzhou Commodity Exchange (the “Exchange”).

Article 2 The Exchange, Members, clients, factory warehouses, Designated Quality Inspection Agencies, and other participants of the futures market shall comply with these Detailed Rules.

Chapter 2 Trading

Article 3 FG contract has a contract size of 20 metric tons/lot.

Article 4 FG contract has a price quotation of Chinese Yuan (RMB)/metric ton.

Article 5 FG contract has a minimum price fluctuation of 1 yuan/metric ton.

Article 6 FG contract has the following delivery months: every month from January to December.

Article 7 FG contract has a minimum order size of 1 lot, maximum order size of 1,000 lots for limit orders, and maximum order size of 200 lots for market orders.

The Exchange may adjust the minimum order size, maximum limit order size, and maximum market order size based on market conditions. The specific thresholds will be separately announced by the Exchange.

Article 8 FG contract is traded during night session hours and day session hours. The night session hours are 21:00 – 23:00. The day session hours are 9:00 – 11:30 and 13:30 – 15:00, with a break at 10:15 – 10:30.

Any suspension or cancellation of the night session or adjustment of the night session hours will be announced by the Exchange.

Article 9 FG contract has the following Last Trading Day: the 10th trading day of the delivery month.

Article 10 FG contract has the following product code: FG.

Chapter 3 Delivery

Section 1 General Rules

Article 11 FG may be delivered by exchange of futures for physical and standard factory warehouse receipts.

Rolling Delivery for FG is conducted through Response Matching.

The specific delivery procedures are governed by the applicable provisions of the Futures Delivery Rules of Zhengzhou Commodity Exchange and these Detailed Rules.

Article 12 FG contract has a delivery unit of 20 metric tons.

Article 13 FG contract has the following Last Delivery Day: the 13th trading day of the delivery month.

Article 14 The standard warehouse receipts for FG are all standard factory warehouse receipts.

The standard warehouse receipts for FG are all non-general standard warehouse receipts.

Article 15 The standard warehouse receipts for flat glass registered on or before the 15th trading day of January, March, May, July, September, or November of each year shall be cancelled on or before the 15th trading day of January, March, May, July, September, or November of the same year.

Article 16 Delivery of FG shall be made against a special VAT invoice.

Article 17 The factory warehouses for FG and the relevant premiums and discounts are determined and published by, and subject to the adjustment of, the Exchange.

Article 18 The benchmark delivery price of FG is the tax-included price at which the benchmark deliverable is delivered without packaging materials through a load-out at a benchmark delivery point onto a truck.

Article 19 In a commodity pick-up with trucks, all expenses incurred before the commodity is loaded onto the trucks shall be borne by the factory warehouse; all expenses incurred thereafter shall be borne by the pick-up person. In a pick-up with ships, the drayage and wharfage shall be borne by the pick-up person.

The rates of delivery fees, storage fees, inspection fees, and other delivery-related fees will be separately announced by the Exchange.

Article 20 A factory warehouse shall provide packaging materials and accessories if requested by the buyer. The fee structure and fee rates will be separately announced by the Exchange along with the list of factory warehouses for FG.

Article 21 Any matter in relation to the creation, negotiation, and cancellation of standard warehouse receipts for FG that is not covered by these Detailed Rules is governed by the Rules of Zhengzhou Commodity Exchange on Standard Warehouse Receipts.

Section 2 Delivery Standard

Article 22 The delivery of FG is governed by national standards and these Detailed Rules.

Article 23 The benchmark deliverable is ordinary-grade colorless, transparent flat glass under National Standard of the People’s Republic of China “Flat Glass” (GB 11614-2022) with the dimensions of 3.66 m × 2.44 m × 5 mm.

Article 24 The substitute deliverable is ordinary-grade colorless, transparent flat glass under GB 11614-2022 with the dimensions of 3.66 m × 2.44 m × 6 mm, at no premium or discount.

Section 3 Delivery with Standard Factory Warehouse Receipts

Article 25 The maximum number of standard warehouse receipts registerable by an FG factory warehouse is determined by, and subject to the adjustment of, the Exchange.

A factory warehouse for flat glass shall provide registration security in accordance with the rules of the Exchange before requesting to register standard warehouse receipts.

Article 26 Upon the cancellation of a standard factory warehouse receipt for flat glass, the pick-up person shall, within ten (10) business days after the Exchange issues the Pick-up Notice, visit the factory warehouse to complete the pick-up procedures with his ID card, certificate of identity and authority issued by his employer, and the verification code for the Pick-up Notice; verify the quality of the commodity and determine the means of transport; and pay the applicable fees in advance.

The pick-up person shall, at the time of pick-up, come to an agreement with the factory warehouse on the shipment speed and the load-out completion time. If no agreement can be reached, the factory warehouse shall comply with the daily shipment volume approved by the Exchange.

In these Detailed Rules, “daily shipment volume” refers to the minimum quantity of futures deliverable ready for shipment by a factory warehouse within a 24-hour period. The daily shipment volume of a factory warehouse is determined by and subject to the adjustment of the Exchange.

Article 27 A pick-up person and factory warehouse may agree on a thickness, specifications, and grade of flat glass that are different from those of the benchmark deliverable and substitute deliverable, and settle the payment themselves.

Article 28 Unless otherwise agreed with the pick-up person, a factory warehouse shall begin shipping the commodity within three (3) calendar days after the pick-up procedures are duly completed. The pick-up person may either pick up the commodity personally at the warehouse or request the factory warehouse to ship it on his behalf.

The shipping time limit in the preceding paragraph does not apply if shipment is delayed due to such reasons as a change of the means of transport or shipment date by the pick-up person, missing pick-up documentations, late payment of relevant fees, or special shipping instructions.

Article 29 The load-out weight of flat glass takes into account of the standard thickness. At pick-up each standard warehouse receipt for flat glass shall correspond to no less than 1,600 square meters of 5 mm National Standard glass and no less than 1,334 square meters of 6 mm National Standard glass. The tolerance for each pick-up of flat glass (i.e., one pick-up form) is determined by the buyer provided it shall not exceed one packaging unit. The tolerance shall be settled by the parties themselves in reference to the final settlement price for the nearby FG contract.

The pick-up person shall be present at the delivery location to monitor the delivery process, or be deemed to have accepted the load-out weight.

Article 30 Unless otherwise agreed with the pick-up person, a factory warehouse shall ensure the commodity delivered meets the quality specifications of the Exchange for delivery.

The factory warehouse shall provide the Certificate of Quality to the pick-up person at load-out. The pick-up person may refuse to accept any flat glass produced 60 or more days before the cancellation date of the corresponding standard warehouse receipt.

Article 31 Where the pick-up person or factory warehouse objects to the weight or quality of the commodity, they shall jointly determine a solution; failing which, the pick-up person or factory warehouse may request the Exchange for a one-time re-inspection with the requester’s payment of the re-inspection fee and other relevant fees in advance. The request for re-inspection shall be submitted before load-out. The commodities to be re-inspected are those whose quality is challenged by the requester. The procedures for the re-inspection are governed by the “Load-out Re-inspection of Factory Warehouse Commodities” section under the Rules of Zhengzhou Commodity Exchange on Standard Warehouse Receipts.

Article 32 Where the factory warehouse or pick-up person fails to ship or pick up the commodity as planned, they shall discuss a solution in a timely manner and appropriately adjust the shipment speed or schedule. The party at fault shall additionally pay a late fee. The amount of late fee = Σ[5 yuan/metric ton/day × days delayed × commodity quantity yet to be shipped or picked up].

Where the factory warehouse fails to ship the commodity in full within five (5) calendar days from the agreed final shipment date, the pick-up person may request the factory warehouse to terminate shipment and pay liquidated damages. The amount of liquidated damages = highest final settlement price of the FG contract in the nearby month × commodity quantity yet to be shipped × 120%.

The factory warehouse or the pick-up person is not liable for the late fee or liquidated damages if shipment or pick-up is delayed by weather or other force majeure events.

The factory warehouse and pick-up person shall properly keep the commodity shipment schedule, agreements, and shipment- and pick-up-related documentations as the basis for settling potential disputes.

Article 33 Where more than one pick-up person takes delivery at the same time, the factory warehouse may arrange the shipment in accordance with such factors as the time scheduled with the pick-up persons and the completion time of the pick-up procedures.

Article 34 Where a factory warehouse defaults on its delivery obligations and fails to pay or fully pay the compensation or liquidated damages, the Exchange may compensate the pick-up person by disposing of the security provided by the factory warehouse.

Article 35 Upon the completion of shipment and the Exchange’s written confirmation of the fulfillment of quality and quantity obligations by the factory warehouse, the Exchange will return the properties or documents provided by the factory warehouse as security at the factory warehouse’s request.

Chapter 4 Risk Management

Article 36 FG contract has a minimum Trading Margin rate of 5% of contract value.

The Trading Margin rate of FG contract varies as follows:

Trading period	Trading Margin rate
From listing to the 15th calendar day of the month preceding the delivery month	5% of contract value
From the 16th calendar day to the last calendar day of the month preceding the delivery month	10% of contract value
Delivery month	20% of contract value

Article 37 FG contract has a price limit of ±4% of the settlement price of the preceding trading day.

Article 38 The position limit of a particular FG contract varies as follows:

Trading period	Maximum long position or short position held by a non-futures brokerage Member or client (lot)
From listing to the 15th calendar day of the month preceding the delivery month	Open interest < 200,000	20,000
	Open interest ≥ 200,000	10% of open interest
From the 16th calendar day to the last calendar day of the month preceding the delivery month	5,000
Delivery month	1,000 (0 for individuals)

“Position limit” as used in this Article refers to the maximum size of speculative positions (calculated on a single-counted basis) in a given futures contract that a Member or client is permitted to hold by the Exchange.

Article 39 Where the Exchange adjusts the Trading Margin rate or price limit of FG contract in accordance with the Risk Control Rules of Zhengzhou Commodity Exchange or other rules, such adjusted values shall prevail.

Chapter 5 Ancillary Provisions

Article 40 Any violation of these Detailed Rules will be handled in accordance with the Rules of Zhengzhou Commodity Exchange on Violations and other applicable Rules of the Exchange.

Article 41 Any matter not covered by these Detailed Rules is governed by the relevant Rules of the Exchange.

Article 42 The Exchange reserves the right to interpret these Detailed Rules.

Article 43 These Detailed Rules take effect on February 6, 2024.

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