(Adopted at the 20th meeting of the 8th Board of Governors on October 30, 2024; issued by Announcement [2024] No.167 on December 5; effective as of the date of issuance)

Chapter 1 General Provisions

Article 1 These Rules are made in accordance with the regulations and policies of the People’s Republic of China on the development of the futures market, the Trading Rules of Zhengzhou Commodity Exchange and the Futures Clearing Rules of Zhengzhou Commodity Exchange, and the needs identified during the futures trading activities at the Zhengzhou Commodity Exchange (the “Exchange”) for the purposes of regulating the futures margin depository activities at the Exchange, ensuring the safe deposit of futures margin funds and the smooth conduct of futures trading, and promoting a sound futures market.

Article 2 A Futures Margin Depository Bank (“Depository Bank”) refers to any banking institution designated by the Exchange for providing such services to Members and investors as the deposit of futures margin funds, Funds Deposits, and Funds Withdrawals.

Article 3 The Exchange administers Depository Banks in accordance with these Rules. The Exchange, as well as Depository Banks and their relevant staff members, shall comply with these Rules.

Chapter 2 Application for Depository Bank Status

Article 4 The futures margin depository business at the Exchange is divided into margin depository business for domestic clients and margin depository business for overseas clients.

“Margin depository business for domestic clients” refers to the margin depository services for Members and domestic clients. “Margin depository business for overseas clients” refers to the margin depository services for overseas brokers and overseas clients.

The margin depository business in relation to the futures trading and related activities of Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors (collectively “Qualified Overseas Investors”) in the Chinese mainland shall be administered as margin depository business for domestic clients.

Article 5 A banking institution shall apply to the Exchange to engage in futures margin depository business at the Exchange.

An applicant for Depository Bank status shall meet the following qualification requirements:

(1) being a nationwide banking institution incorporated in the mainland of the People’s Republic of China (“PRC”);

(2) having a branch at the place where the Exchange is located that is capable of handling the futures margin depository business and funds settlement-related processes;

(3) satisfying the requirements of the banking regulatory authority of the PRC with respect to the capital adequacy ratio, liquidity, debt ratio, and other requirements for banking institutions;

(4) having sound corporate governance frameworks, risk management protocols, and internal controls;

(5) having the necessary facilities and technical capabilities to engage in the futures margin depository business and facilitate the monitoring of the safe deposit of futures margin; a fast, sophisticate intracity funds transfer system that has seen stable operations in the most recent three (3) years; a nationwide real-time funds transfer and remittance system for its branches; and a well-functioning, centralized nationwide bank-futures funds transfer system;

(6) having a sound futures margin management framework, internal management policies, operating procedures, and the contingency plans for technical issues, communications system disruptions, and other exceptional circumstances;

(7) having a dedicated department or organization that is responsible for the futures margin depository business. The branch designated by the Exchange for the deposit of futures margin funds shall have at least three (3) employees who have obtained the certificate of passing the Futures Qualification Examination of the People’s Republic of China (“Futures Certificate”), as well as a clearing services counter staffed by employees who have all obtained the Futures Certificate and the manager of which shall additionally possess five (5) years of working experience in the banking industry;

(8) having no pending litigation or outstanding debt obligations that would materially affect its credit standing;

(9) not having committed any material illegal or non-compliant act, created any major incident, or received any major administrative penalty from a regulatory authority in the most recent three (3) years; and

(10) meeting other requirements specified by the Exchange.

Article 6 Any banking institution that applies to engage in the futures margin depository business for domestic clients shall meet the provisions of Article 5 of these Rules as well as the following conditions:

(1) having a registered capital of RMB 10,000,000,000 and having been profitable in each of the most recent three (3) fiscal years;

(2) having total assets of RMB 1,500,000,000,000 and a net capital of RMB 100,000,000,000; and

(3) having at least 600 branches in the Chinese mainland.

Item (1) of Article 5 and Items (1) through (3) of this Article do not apply to any policy bank that is closely related to any product listed on the Exchange and applying to engage in futures margin depository business at the Exchange.

Item (1) of Article 5 and Items (1) through (3) of this Article do not apply to any custodian bank for Qualified Overseas Investors that is only applying to engage in futures margin depository business for those Qualified Overseas Investors.

Article 7 Any banking institution that applies to engage in the futures margin depository business for overseas clients shall meet the provisions of Article 5 of these Rules as well as the following conditions:

(1) having a registered capital of RMB 5,000,000,000 and having been profitable in each of the most recent three (3) fiscal years;

(2) having total assets of RMB 1,500,000,000,000 and a net capital of RMB 100,000,000,000; or having total assets of RMB 30,000,000,000 and a net capital of RMB 5,000,000,000 with a parent company having the equivalent of RMB 1,500,000,000,000 in total assets and the equivalent of RMB 100,000,000,000 in net capital; and

(3) being a direct clearing bank of the relevant high-value real-time payment system or having a correspondent banking relationship with such a direct clearing bank; being able to complete funds transfers on an efficient and real-time basis; and having, in relation to either itself or its parent company, branches in at least one global or regional financial center that are capable of handling the futures margin depository business and funds settlement-related activities.

Article 8 Any banking institution that applies to become a Depository Bank shall submit the following preliminary review materials to the Exchange:

(1) the application form for futures margin depository business and an application report, feasibility report, and business plan;

(2) a statement on its branches, business outlets, and other facilities necessary for the futures margin depository business;

(3) its futures margin depository rules, internal management policies, and relevant contingency plans for technical issues, communications system disruptions, and other exceptional circumstances;

(4) the job positions, job responsibilities, and the list and resumes of the head and relevant staff members of the department in charge of futures margin depository business;

(5) (with respect to any application for margin depository business for overseas clients) a statement and the relevant materials on whether it is a direct clearing bank of the relevant high-value real-time payment system or has a correspondent banking relationship with such a direct clearing bank;

(6) the most recent enterprise annual report published in accordance with the requirements of the State Administration for Industry and Commerce;

(7) a letter of commitment on compliance with the rules for the monitoring of the safe deposit of futures margin funds;

(8) a photocopy of the Business License for Enterprise Legal Person that has passed the most recent annual examination;

(9) a photocopy of the Financial Business Permit;

(10) the audit reports and internal control assessment reports of the most recent three (3) years;

(11) the authorization letter (Appendix 2) and identity certificates of the employee handling the application process; and

(12) any other documents required by the Exchange.

Article 9 Any banking institution that applies to become a Depository Bank and has passed the Exchange’s preliminary review shall, in accordance with the requirements of the Exchange and the China Futures Market Monitoring Center Co., Ltd. (“CFMMC”), pass relevant service, technical, and communications equipment tests and provide the following materials to the Exchange:

(1) the certification issued by CFMMC for passing the tests of the depository data reporting system;

(2) the report from its participation, with futures brokers and other futures market participants, in the tests of the centralized nationwide bank-futures funds transfer system;

(3) a photocopy of the Business License of the branch designated by the Exchange and a statement on the establishment, covering its business premises, facilities, job positions and responsibilities, list and resumes of the head and relevant staff members, and the Futures Certificates of the relevant individuals; and

(4) any other documents required by the Exchange.

Article 10 The Exchange will review the application materials and system test results submitted by a banking institution, and then file its decisions with the China Securities Regulatory Commission (“CSRC”) for record. For any banking institution that is found to be qualified as a Depository Bank, the Exchange will notify it in writing after five (5) business days following filing and announce the result on its website. The qualified banking institution shall then notify the banking regulatory authority of the People’s Republic of China (“PRC”) within three (3) days of acquiring the Depository Bank status.

Article 11 Before engaging in the futures margin depository business, a Depository Bank shall sign an agreement with the Exchange to clarify their respective rights and obligations.

Chapter 3 Rights and Obligations

Article 12 A Depository Bank has the right to:

(1) open a Dedicated Settlement Account for the Exchange, the dedicated margin accounts for Members, the futures settlement accounts for overseas brokers and clients, and other settlement-related accounts;

(2) take the deposits of the Exchange, Members, overseas brokers, clients, and other relevant parties; and

(3) access the credit standing of Members and other relevant parties maintained with the Exchange.

Article 13 A Depository Bank is obligated to:

(1) provide information on the funds of Members’ dedicated margin accounts and overseas brokers’ futures settlement accounts to the Exchange;

(2) prioritize the transfer of Members’ funds in accordance with the instruments or instructions of the Exchange, promptly notify the Exchange of the funds transfer results and the related account changes, and complete the purchase and sale of foreign currencies for futures trading in a timely manner in accordance with relevant rules;

(3) assist the Exchange in verifying the source and destination of Members’ funds;

(4) keep the Exchange up-to-date on the pledge of standard warehouse receipts and any improper acts or risks of Members relating to funds settlement;

(5) assist the Exchange in mitigating any major risks it faces;

(6) take the necessary supervisory actions against the funds in Members’ dedicated margin accounts as required by the CSRC or the Exchange;

(7) keep confidential the confidential commercial information of the Exchange, Members, overseas brokers, and clients; and

(8) accept the supervision of the Exchange over its futures business.

Chapter 4 Business Requirements

Article 14 Each Depository Bank shall set up the Exchange-designated branch within the distance specified by the Exchange. The designated branch shall have a dedicated futures services counter.

Article 15 A Depository Bank shall maintain stable business operations and personnel at its Exchange-designated branch, periodically organize training for its business professionals, actively participate in the training activities organized by the Exchange, and ensure its business professionals are familiar with the procedures of the futures margin depository business and the rules and requirements of the Exchange on the deposit of futures margin funds and on other clearing-related activities.

Article 16 A Depository Bank shall open a Dedicated Settlement Account and other dedicated deposit accounts for and as requested by the Exchange. The account name shall reflect the business to be transacted through the account.

Article 17 A Depository Bank shall open, update, and close the funds accounts of Members in accordance with their applications.

Any Depository Bank that engages in margin depository business for overseas clients shall open futures-related bank accounts for the Exchange, Members, Overseas Special Participants, overseas brokers, and overseas clients in accordance with the applicable rules of the People’s Bank of China and the State Administration of Foreign Exchange.

Article 18 A Depository Bank shall, in accordance with the rules on the safe deposit of futures margin funds, handle the deposits and withdrawals of futures margin through electronic funds transfers and segregate futures margin from other funds and accounts throughout its safekeeping.

A Depository Bank shall handle the purchase and sale of foreign currencies for the Exchange and Members in accordance with the foreign exchange regulations of the PRC and the requirements of the Exchange, and fulfill its reporting obligations as required.

Article 19 A Depository Bank shall provide the Exchange, Members, clients, and overseas brokers with safe, accurate, and expedient futures margin deposit and transfer services.

Article 20 A Depository Bank shall open for business at least thirty (30) minutes before market open at the Exchange, and shall extend its business hours accordingly whenever additional time is needed for futures clearing following market close.

Article 21 A Depository Bank shall immediately update the balance of the Exchange’s Dedicated Settlement Account and notify the Exchange upon receiving any funds transferred to that account.

Article 22 A Depository Bank shall comply with the following rules when transferring funds in accordance with the electronic or paper-based funds transfer instructions of the Exchange:

(1) for intra-bank funds transfers, the Depository Bank shall transfer the funds into the Member’s Dedicated Funds Account designated by the Exchange immediately upon receiving the transfer instruction from the Exchange;

(2) for inter-bank fund transfers, the Depository Bank shall transfer the funds by the fastest available method upon receiving the transfer instruction from the Exchange, and shall ensure such funds arrive at the bank of the receiving account designated by the Exchange in a prompt manner or, under special circumstances, before 4:00 p.m. on the day of the transfer;

(3) the Depository Bank may improve the efficiency of funds transfers through collaboration with other organizations.

Article 23 A Depository Bank shall conduct daily account reconciliation with the Exchange with respect to the Dedicated Settlement Account in accordance with the following rules:

(1) conducting account reconciliation upon the completion of daily funds settlement or when requested by the Exchange;

(2) providing balance information and balance updates on the Dedicated Settlement Account as requested by and immediately upon the request of the Exchange;

(3) delivering the receipts statement, detailed payments and receipts lists, and other business documentations to the Exchange on the same day that the relevant clearing activities are completed; and

(4) providing the account statements for the relevant settlement accounts promptly and as requested by the Exchange.

Article 24 A Depository Bank shall, in accordance with the rules on the monitoring of the safe deposit of futures margin funds, report the account balance, balance change details, and other relevant information of the preceding trading day about all futures margin accounts it has opened to the CFMMC through a dedicated line and within the prescribed time limit.

Article 25 A Depository Bank shall provide the Exchange with information on the balance and balance change of Members’ dedicated margin accounts immediately upon request by the Exchange.

Article 26 A Depository Bank shall take effective measures to reduce liquidity risks and shall not restrict Funds Deposits and Funds Withdrawals by Members without the Exchange’s written permission. The Exchange may make inter-bank transfer of margin at any time to test the security of margin deposits.

Article 27 A Depository Bank shall pay interest to the Exchange at the deposit rate they have agreed upon.

Article 28 Where the funds clearing system of the Exchange has a need for liquidity, a Depository Bank must provide the corresponding funding support upon request by the Exchange.

Article 29 No Depository Bank shall help a Member to create security on its futures margin account, or misappropriate client margin to pay off the debts of a Futures Brokerage Member, overseas broker, or the Exchange.

Article 30 A Depository Bank shall refuse any unlawful request of an organization or individual to freeze or forcibly transfer the funds in the Exchange’s Dedicated Settlement Account, and shall promptly notify the Exchange upon knowing any organization’s plan to freeze a Member’s Dedicated Funds Account or to take any action that would adversely affect the margin depository business.

Chapter 5 Technical Requirements

Article 31 A Depository Bank shall develop a funds transfer system in accordance with the relevant interface specifications of the Exchange, and ensure such system passes the function and performance tests and meets the technical specifications of the Exchange.

Article 32 The centralized nationwide bank-futures funds transfer system of each Depository Bank shall offer multiple access points to the Member systems and meets the disaster recovery and redundancy requirements of Members’ bank-futures funds transfer systems.

Article 33 Each Depository Bank shall apply for one primary and one backup communications line to the Exchange. The network parameters will be provided by the Exchange.

Article 34 Each Depository Bank shall include the funds transfer system into the overall operation and maintenance procedures for its computer systems and monitor the funds transfer system and its data links and software and hardware platforms on a real-time basis.

Article 35 Any Depository Bank that intends to update the application program or network system of the funds transfer system shall notify the technology and maintenance department of the Exchange five (5) business days in advance and complete the necessary system testing before the update.

Article 36 Each Depository Bank shall proactively participate in the emergency drills and joint tests organized by the Exchange.

Article 37 A Depository Bank shall designate emergency IT contacts who are on call 24/7. Any change of the emergency IT contacts shall be filed with the technology and maintenance department of the Exchange in a timely manner.

Chapter 6 Emergency Response

Article 38 A Depository Bank shall develop a sound Depository Bank Contingency Plan for Network Security and Cybersecurity Incidents, such that in the event of such an incident, there will be clear division of responsibilities, effective measures, quick response, and prompt resolution.

Article 39 In the event of any operational error or computer system fault at the Exchange or a Depository Bank that may affect funds settlement for futures trading, the Exchange or the Depository Bank shall immediately notify the other party and take proactive remedial actions.

Article 40 Any party that identifies a fault within the funds transfer system shall immediately notify the other party, upon which the parties shall closely cooperate with each other and each examine its own systems to determine the cause, eliminate the fault, and determine the scope of liabilities. If necessary, the parties shall immediately take the relevant emergency measures.

Article 41 Any Depository Bank that is the site of an event that may affect the stable and secure operation of the futures margin depository business shall immediately activate the corresponding contingency plan to resume normal operation at the earliest possible time, and shall report the situation to the Exchange and CFMMC.

Chapter 7 Supervision

Article 42 A Depository Bank shall notify the Exchange and CFMMC in writing within three (3) business days of any change in the job positions, job responsibilities, department head, contact persons, or other relevant aspects of its futures department.

Article 43 A Depository Bank shall notify the Exchange and CFMMC of any material business risk or loss that may affect its credit standing and submit a written analysis of the impacts of the risk or loss on its futures margin depository business as well as the actions it will take in response within three (3) business days of the incurrence of such risk or loss.

A Depository Bank shall promptly notify the Exchange upon identifying any potential or predicable risks in an overseas financial market or capital market, and provide assistance in the corresponding risk prevention activities.

Article 44 Any Depository Bank that plans to upgrade or change its system or to take any action that may affect the futures margin depository business shall notify the Exchange, CFMMC, and the relevant futures brokers five (5) business days in advance, make adequate disclosures and conduct adequate system testing, and develop a targeted contingency plan.

Article 45 Each Depository Bank shall, within one (1) month of the end of each year, submit a report to the Exchange and CFMMC on its futures margin depository business and IT and risk management programs as well as its observance with the relevant laws, regulations, ministry-level rules, and policies.

Article 46 The Exchange reviews the qualifications of each Depository Bank to engage in futures margin depository business on an annual basis or when and as needed. Depository Banks shall provide cooperation during such reviews.

Article 47 The Exchange conducts annual assessment of Depository Banks to comprehensively evaluate the timeliness, security, accuracy, and liquidity management of their futures margin depository business as well as their system maintenance program, staffing and services, business operations, and customer satisfaction rate.

The Exchange may take the results of this assessment into account when entering into business arrangements or cooperation projects with the Depository Banks.

Chapter 8 Penalties for Violations

Article 48 A Depository Bank will, based on the seriousness of the circumstances, be subject to such penalties as a warning, a public reprimand, and suspension from accepting other Members as new customers, if it:

(1) fails to fulfill the obligations prescribed under these Rules and the service agreement concluded with the Exchange, or violates other Rules of the Exchange;

(2) fails to take effective actions in response to any situation that adversely affects or may adversely affect the futures margin depository business, thereby undermining the soundness of the futures market or harming the lawful rights and interests of Members, overseas brokers, or clients;

(3) fails to report data on the safe deposit of futures margin funds as required by the CFMMC;

(4) fails to immediately notify the Exchange or to take prompt and effective actions following any operational error or computer system fault that may affect funds settlement for futures trading;

(5) fails to meet the requirements of the banking regulatory authority of the PRC on such indicators as the capital adequacy ratio, liquidity, and debt ratio;

(6) refuses to cooperate with the Exchange during the annual or occasional review of its funds settlement services, or fails to submit the annual review of its margin depository business in the preceding year as required or other materials as required;

(7) restricts Funds Deposits or Funds Withdrawals by Members without justification;

(8) is the subject of many Member complaints received by the Exchange for sub-standard service or unstable bank-futures funds transfer system; or

(9) falls under any other circumstance recognized by the Exchange.

Article 49 A Depository Bank will be suspended from all margin depository activities if it:

(1) fails to take effective actions and allows the funds in the Exchange’s Dedicated Settlement Account to be frozen or forcibly transferred;

(2) helps a Member to create security on its futures margin account;

(3) has made a loss in the most recent fiscal year;

(4) falls under any other circumstance recognized by the Exchange.

Article 50 The suspension of a Depository Bank from the futures margin depository business may be lifted if, following its rectification and the review and approval of the Exchange, the Depository Bank is once again capable of engaging in such business as normal.

Article 51 The Depository Bank status of a Depository Bank may be revoked by the Exchange if it:

(1) applies for the termination of its futures margin depository business;

(2) is lawfully cancelled, dissolved, or declared bankrupt as a business;

(3) has lost its legal personality following a merger or acquisition;

(4) is no longer qualified to engage in the futures margin depository business;

(5) has made a loss in each of the most recent three (3) fiscal years;

(6) has failed the most recent annual assessment and still fails to meet the relevant standards at the end of the rectification period;

(7) provides false materials or information to the Exchange;

(8) has major potential risks in the opinion of the Exchange; or

(9) falls under any other circumstance recognized by the Exchange.

Article 52 Upon deciding to terminate the status of a Depository Bank, the Exchange shall issue a termination notice to the Depository Bank ten (10) business days in advance, report the termination to the CSRC, and announce it on its own website.

The termination of the Depository Bank status does not affect any legal relations already established between the banking institution and the Exchange before such termination. The Exchange will be entitled to terminate the relevant businesses with the banking institution in accordance with the law.

Article 53 Any banking institution whose Depository Bank status is terminated by the Exchange may not re-apply for such status within three (3) years from the date of termination.

Chapter 9 Ancillary Provisions

Article 54 Each Depository Bank shall undertake not to disclose any non-public information involving the futures margin depository business to any third party in any manner, unless otherwise provided by the laws and regulations of the PRC.

Article 55 Any Depository Bank that was already engaging in futures margin depository business before the effectiveness of these Rules will not need to re-apply for the Depository Bank status, but shall comply with the other provisions of these Measures.

Article 56 The Exchange reserves the right to interpret these Rules.

Article 57 These Rules take effect on December 5, 2024.