(Adopted at the 23th meeting of the 7th Board of Governors on March 31, 2022; issued by Announcement [2022] No. 112 on May 12, 2022; effective as of the date of issuance)

 

Chapter 1    General Provisions

Article 1          These Rules are made in accordance with the Opinions of the Supreme People’s Court and the China Securities Regulatory Commission on Comprehensively Advancing the Establishment of Diversified Mechanisms for Resolution of Securities and Futures Disputes, the Guidelines on Mediation of Securities and Futures Disputes of the China Securities Regulatory Commission, and the Trading Rules of Zhengzhou Commodity Exchange for the purposes of regulating the mediation activities in the futures market, encouraging futures market participants to resolve dispute through mediation, and promoting industry self-governance, an orderly and law-based futures market, and social harmony.

Article 2          The Mediation Committee of the Zhengzhou Commodity Exchange (the “Committee”), a special committee under the Board of Governors of the Zhengzhou Commodity Exchange (the “Exchange”), is responsible of mediating disputes arising from the futures market.

Article 3          Disputes over civil contracts and tort liability arising from futures trading, clearing, delivery, or other related activities between futures market participants may be submitted to the Committee for mediation.

Article 4          Disputes submitted by the disputing parties to the Committee for mediation are governed by these Rules, but if the parties have reached another agreement on the mediation proceedings or governing rules, such agreement shall prevail with the consent of the Committee.

Article 5          Mediation shall be conducted by willing parties as equals and resolve disputes based on facts and in an impartial, fair, independent, and reasonable manner. Mediation activities shall neither violate the mandatory provisions of the laws and administrative regulations of the People’s Republic of China (“PRC”) nor harm the national interest, the public interest, or the lawful rights and interests of any third party.

Article 6          The Committee only accepts a mediation case at the request of the disputing parties.

Article 7          The Committee mediates futures disputes on a not-for-profit basis.

The service fees for mediators and experts shall be determined by the parties or in reference to the industry standard for commercial mediation; the actual expenses incurred during the mediation process shall be paid by and allocated between the parties in such manner as they have agreed. The Committee’s mediation acceptance fee will be waived for any mediation requested by retail traders.

Article 8          The Committee maintains a roster of mediators. Mediators on the roster shall be selected from those staff of securities and futures regulatory agencies, staff of such self-regulatory organizations as futures exchanges and futures associations, experts at futures market organizations, judges, certified public accountants, lawyers, and academics that are impartial and upright, possess the relevant professional experience and expertise, and have not committed any illegal act or major violation. Mediators shall be published on the Exchange’s website or the China Investors website (www.investor.org.cn).

The parties may also jointly appoint mediators outside the roster.

Article 9          The Committee sets up an office in the legal affairs department of the Exchange to be responsible for the day-to-day activities of the Committee.

Chapter 2    Party-Requested Mediation

Article 10        Any party that requests for mediation by the Committee shall submit the following materials:

(1)        the application for mediation, which contains: (a) the name, identity certificate, carrying Member, client code, domicile or contact address, postal code, telephone number, fax number, email address, and other available quick contact information of each party; (b) clear and specific claims and facts of the case;

(2)        relevant documents and evidential materials; and

(3)        identity certificate.

Article 11        The respondent in a case shall submit the following materials to the Committee within ten (10) business days of being notified by the Committee:

(1)        written consent of or objection to mediation by the Committee;

(2)        written response to the mediation request of the applicant;

(3)        any documents and evidential materials it deems appropriate; and

(4)        identity certificate.

Article 12        The Committee will not accept a mediation request if:

(1)        the dispute in question is beyond the scope specified in Article 3 of these Rules or may be in violation of Article 5 of these Rules;

(2)        the respondent objects to mediation, unless mediation is ordered by laws or regulations;

(3)        the parties fail to submit the materials and documents specified in Article 10 of these Rules;

(4)        the dispute in question is undergoing judicial or arbitration proceedings, unless it is a dispute transferred from a people’s court to the Committee under the diversified dispute resolution mechanism;

(5)        the dispute in question has been accepted by another organization for mediation;

(6)        effective judgment, arbitral awards, or other legally binding decisions have been rendered for the dispute in question; or

(7)        the dispute in question is not suitable for mediation for other reasons.

The Committee shall decide whether to accept a mediation request within ten (10) business days of receiving the materials from both the applicant and the respondent.

Article 13        Upon receiving a conforming mediation request, the Committee shall send to each party a mediation notice and a copy of these Rules.

Article 14        Each party shall submit the case materials in triplicate, one for the mediator, one for the Committee, and one for the opposing party. Where there are more than two (2) parties or more than one (1) mediator, additional copies shall be provided accordingly.

Chapter 3    Mediation Requested or Proposed by People’s Courts

Article 15        Where a party has filed a lawsuit with a people’s court over a dispute prescribed in Article 3 of these Rules, the Committee may provide pre-litigation mediation upon the request of the people’s court. The disputing parties shall each sign on the Recommendation for Pre-Litigation Mediation if they agree to such mediation.

Article 16        With respect to any dispute that has already entered the litigation proceedings, the Committee may provide pre-judgment mediation upon the request of the people’s court at the election of the parties. The disputing parties shall each sign on the Recommendation for Pre-Judgment Mediation if they agree to such mediation.

Article 17        With respect to any pre-litigation or pre-judgment mediation, the Committee shall appoint the mediator(s) within three (3) business days of receiving the Request for Entrusted Mediation issued by the relevant people’s court, a copy of the complaint, and other case materials, and commence mediation in a timely manner.

Article 18        With respect to any dispute that has already entered the trial procedures, the Committee may participate in a joint mediation at the proposal and invitation of the people’s court.

The Committee shall, upon receiving the Request for Assisted Mediation issued by the people’s court, appoint mediator(s) to participate in the mediation at the people’s court in a timely manner.

Article 19        With the consent of the parties, the Committee may administer joint mediation with other dispute resolution organizations or provide mediation at the request or proposal of an institution other than the people’s court.

Chapter 4    Rules for Mediation

Article 20        The Committee shall, based on the particulars and complexity of the dispute in question, either designate one (1) sole mediator or establish a mediation tribunal composed of three (3) mediators.

For mediation by a sole mediator, the mediator shall be jointly appointed by the parties within five (5) business days of receiving the relevant notice or, if no agreement can be reached, be designated by the Committee.

For mediation by a mediation tribunal, each party shall appoint, or request the Committee to designate, one (1) mediator within five (5) business days of receiving the relevant notice. The third mediator shall be jointly appointed by the parties or designated by the Committee at the request of the parties. The third mediator is the chief mediator and shall preside over the mediation proceedings.

Where the parties fail to jointly appoint or jointly request the Committee to designate any mediator within the time limit prescribed in the preceding paragraph, such mediator shall be designated by the Committee. The parties may also directly request the Committee to designate a mediator on their behalf.

Any party that objects to a non-challengeable mediator designated by the Committee or appointed by the Committee on its behalf is deemed to be withdrawing its application for mediation which will terminate the mediation proceeding.

Article 21        A mediator shall voluntarily withdraw from a mediation, and the parties are also entitled to challenge the mediator for his withdrawal, if the mediator:

(1)        is one of the parties, an agent of a party, or a close relative of a party or an agent;

(2)        has an interest in the dispute in question;

(3)        has any other relationship with a party or an agent of a party which may jeopardize the independence and impartiality of the process;

(4)        has accepted any entertainment, gift, or other interests offered by any party or agent; or

(5)        falls under any other circumstance that raises reasonable concern over the independence or impartiality of the mediator.

Any party that challenges a mediator shall provide its reasons and relevant evidence. The withdrawal of a mediator is finally determined by the Committee and until such determination is made, the mediator will be suspended from the mediation activities. Where a mediator is no longer able to perform his duties due to withdrawal or otherwise, a new mediator shall be appointed or designated in accordance with these Rules.

Article 22        A party may appoint an agent to attend the mediation proceeding on its behalf by submitting to the Committee a power of attorney specifying the powers of the agent.

Article 23        Mediation is conducted in private sessions, but unless it involves state secret or the confidential commercial information of a third party, it may also be held publicly if agreed to by both parties.

A party may declare that the materials it has submitted are for the sole purpose of the mediation. Mediation can be conducted without transcript at the request of the parties.

The mediators, the parties and their agents, witnesses, experts, the staff members of the Committee, and any other individuals participating in a mediation proceeding are obligated to keep the particulars of a mediation confidential, except where disclosure to competent government agencies is required by law or where disclosure is made for outreach or research purposes after the identity information of the parties has been removed.

A mediator, for the purpose of obtaining a response from a party, may inform it of the statements made in its absence by the other party, unless such other party expressly objects to such disclosure or requires the mediator to keep such statements confidential.

Chapter 5    Mediation Procedures

Article 24        The mediation proceeding commences upon the Committee’s acceptance of the mediation request from the parties or, in the case of a mediation requested by a people’s court, upon the Committee’s acceptance of the request from the people’s court.

Article 25        Mediation may be conducted in such formats as in person, through exchange of documents and correspondences, or over the internet or telephone, determined by the Committee based on the circumstances.

Article 26        Mediators shall treat all parties with fairness and impartiality and help them resolve their dispute.

Mediators may conduct mediation through the following approaches based on a full consideration of the circumstances of the case, the wishes of the parties, and the need for an expeditious resolution:

(1)        Upon the commencement of the proceedings, the mediators shall hear what relief the applicant is seeking and the reasons therefor and the response of the respondent, and may meet the parties and their agents on an ex parte or inter partes basis;

(2)        In the case of an ex parte meeting, the mediators may inform the other, non-attending party of the details of the meeting unless otherwise requested by the attending party;

(3)        The mediators may freely choose joint-style mediation, caucus-style mediation, or both;

(4)        The mediators may request the parties to provide mediation proposal or plan in written or oral form;

(5)        The mediators may, in view of the circumstances of the case and with the consent of both parties, engage experts to provide suggestions or opinions on issues of a professional nature;

(6)        The mediators may require the parties to provide additional materials;

(7)        The mediators may, based on their understanding of the case and in accordance with the principles of fairness and impartiality, offer suggestions on how the dispute may be resolved;

(8)        The mediators may offer a final proposal or plan if the parties fail to settle the dispute through mediation; and

(9)        The mediators may adopt other approaches of mediation that they deem appropriate.

Any fees and expenses arising from the engagement of industry experts shall be borne by the parties.

Article 27        Except for joint mediation conducted at the proposal of a people’s court, mediation shall be carried out at the location designated by the Committee.

Article 28        Where in a party-requested mediation the disputing parties have reached a consensus following mediation, the Committee shall, at the request of the parties, prepare a mediation agreement affixed with the Committee’s seal and send the same to the parties for signature. The mediation agreement is legally binding on all parties.

The parties may make the mediation agreement enforceable by applying to the relevant people’s court for judicial confirmation.

Where a mediation agreement is reached through a pre-litigation mediation or pre-judgment mediation, the Committee shall issue to the people’s court an Outcomes of Entrusted Mediation and the parties may apply to the people’s court for judicial confirmation of the mediation agreement the issuance of a civil mediation paper.

Article 29        The mediation proceeding of a case shall be closed within two (2) months from its acceptance. The above period can be appropriately extended with the consent of the parties or the approval of the Committee.

Article 30        The mediation proceeding of a case is terminated if:

(1)        the parties withdraw the application for mediation or object to the continuation of the proceeding;

(2)        the parties fail to agree on the mediation fees and expenses;

(3)        the parties have reached a mediation agreement or have settled the dispute on their own;

(4)        the parties have failed to reach a mediation agreement upon the expiration of the mediation period and do not wish to extend the mediation period;

(5)        one or both parties have declared the termination of the mediation proceeding;

(6)        the mediators, having consulted with the parties, declare that it is meaningless to continue the mediation; or

(7)        there are any other circumstances that, in the opinion of the Committee, warrant the termination.

Article 31        Neither party shall cite any statement, opinion, view, suggestion, or admission made during the mediation proceeding by the other party or a mediator in any subsequent arbitration, judicial, or other proceedings, nor use any written materials from the mediation to substantiate or prove its claims, defenses, or counterclaims.

No party shall call up any mediator to serve as a witness in any of the proceedings mentioned in the preceding paragraph.

Chapter 6    Ancillary Provisions

Article 32        The Exchange reserves the right to interpret these Rules.

Article 33        These Rules take effect on the date of issuance.

 

 

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