(Amended at the special members meeting of the Zhengzhou Commodity Exchange on January 22,2024; issued by Announcement [2024] No. 16 on February 6, 2024; effective as of February 6, 2024.)

Chapter 1 General Provisions

Article 1 These Trading Rules are made in accordance with applicable laws, regulations, and ministry-level rules of the People’s Republic of China (“PRC”) and the Bylaws of Zhengzhou Commodity Exchange for the purposes of regulating futures trading activities, protecting the lawful rights and interests of the parties in futures trading, and safeguarding the public interest.

Article 2 These Trading Rules apply to futures trading and related activities organized by the Zhengzhou Commodity Exchange (the “Exchange”).

“Futures trading” refers to the buying and selling of futures contracts or option contracts through open, centralized trading or by such other means as approved by the China Securities Regulatory Commission (“CSRC”).

The trading, clearing, delivery, and other services provided by the Exchange for other futures-related activities are governed by other relevant rules of the Exchange.

Article 3 The Exchange organizes futures trading and related activities in an open, fair, and impartial manner and in good faith, and fulfills its self-regulatory duties.

Article 4 Members, clients, Certified Warehouses, overseas traders, overseas brokers, Futures Margin Depository Banks, market makers, and other participants of the futures market that engage in futures trading and related activities shall comply with laws, regulations, ministry-level rules, and Rules of the Exchange, and act with integrity and good faith.

Article 5 The Exchange organizes futures trading and related activities under the supervision and regulation of the CSRC.

Chapter 2 Trading

Section 1 Trading Venues and Facilities

Article 6 The Exchange provides trading venues and facilities for futures trading. Such trading venues and facilities include but are not limited to the order-matching system, trading seats, the emergency trading venue, and communications systems.

Article 7 The Exchange sets up an emergency trading venue in the city of its domicile to help ensure Members can trade as normal in emergency situations.

Any Member that is affected by a failure of the trading system due to a malfunction of the communications systems or due to system upgrades or changes may apply for the use of the emergency trading venue.

Article 8 The Exchange maintains data backups both within and outside the city of its domicile to safeguard the trading data.

Section 2 Trading Parties

Article 9 Only Members of the Exchange and other organizations meeting the requirements of relevant laws and regulations may engage in futures trading at the Exchange.

Members or such other organizations that connect to trading-related computer systems shall meet the requirements of the Exchange and accept its administration.

Article 10 Members of the Exchange are classified into futures brokerage Members (“FB Members”) and non-futures brokerage Members (“Non-FB Members”).

The Exchange may admit Special Members as necessary for trading, clearing, delivery, and other purposes.

Article 11 A client shall engage in futures trading through an FB Member and open an account and register with such Member before trading.

Clients are classified into individual clients (“individuals”) and non-individual clients (“non-individuals”). Non-individuals consist of Ordinary Institutional Clients and Special Institutional Clients.

Article 12 The means by which overseas traders and overseas brokers engage in the futures trading of Specified Domestic Products will be separately prescribed by the Exchange.

The list of Specified Domestic Products is as approved by the CSRC.

“Overseas trader” refers to any legal entity or unincorporated organization duly established outside the Chinese mainland or any individual with lawful foreign citizenship that engages in futures trading and accepts the results of such trades.

“Overseas broker” refers to any financial institution duly established outside the Chinese mainland and recognized by its home futures regulatory authority as being qualified to accept client funds and trading orders and to engage in futures trading in its own name for the said clients.

Article 13 An FB Member shall, before opening an account for a client, provide the client with the Risk Disclosure Statement for Futures Trading, verify that the client has undertaken to comply with the Rules of the Exchange, and sign a futures brokerage contract with the client.

Article 14 An FB Member shall file the valid identity certificate and other account opening information of each client with the Exchange via China Futures Market Monitoring Center Co., Ltd. in accordance with relevant rules.

Article 15 The Exchange implements a trading code system for clients. An FB Member shall open a dedicated account and apply for a trading code for each client. Mixed-code trading is prohibited.

Any Special Institutional Client that is required by laws, regulations, or ministry-level rules to manage assets under segregated accounts may apply for a trading code for the assets to be managed under each segregated account.

Article 16 An FB Member may accept clients’ trading orders in writing or through telephone, a self-service terminal, the internet, and any other means prescribed by the CSRC.

The FB Member shall assign a sequential number to and record the time of each trading order upon its acceptance.

Article 17 An FB Member shall, upon accepting a client’s trading order, review the order with respect to the client’s funds and positions and promptly submit it to the order-matching system of the Exchange.

The FB Member shall timely inform the client upon receiving the execution report.

Article 18 Each Member may obtain the transaction record through the Exchange’s member service system at the end of each trading day. Any objection to the transaction record shall be raised with the Exchange in writing or through another documented method on the day of the report.

Article 19 An FB Member shall provide each of its clients with the settlement report upon market close of each trading day.

Article 20 An FB Member is the first party to be liable and responsible for the futures trading activities conducted in its name; a client is ultimately liable and responsible for the futures trading activities it conducts through an FB Member.

Article 21 An FB Member shall fulfill the obligations of good faith to its clients, not divulge their confidential trading information, and prevent conflict of interest.

Article 22 An FB Member shall faithfully provide its clients with information on its credit standing and businesses as well as information and consulting services.

An FB Member shall have adequate and up-to-date information on their clients, strengthen client management, and monitor clients for abnormal trading behaviors.

Article 23 The Exchange preserves futures trading, clearing, and delivery documents for not less than twenty (20) years.

An FB Member shall preserve the materials and records related to the opening, change, and closure of a client’s account for not less than twenty (20) years upon the termination of the brokerage contract with the client, and a client’s trading orders, clearing, erroneous orders, and complaints records and other business records for not less than twenty (20) years.

Section 3 Listed Products and Contracts

Article 24 The Exchange lists products on commodities from the agricultural, energy, chemical, construction materials, metallurgy, and other industries and on the related indices.

Article 25 A “futures contract” refers to a standardized contract which is centrally created by the Exchange and provides for the delivery of a specified quantity of the underlying assets at a specified place and time in the future.

An “option contract” refers to a standardized contract which is centrally created by the Exchange and entitles the buyer to buy or sell the agreed underlying assets, including futures contracts, at a specified price and time in the future.

Article 26 The main terms of a futures contract include the product name, trading unit, price quotation, minimum price fluctuation, price limit, minimum Trading Margin, delivery month, trading hours, Last Trading Day, Last Delivery Day, grade and quality, delivery point, delivery method, and product code.

The main terms of an option contract include the underlying, contract type, trading unit, price quotation, minimum price fluctuation, price limit, contract month, trading hours, Last Trading Day, expiration date, strike price, exercise style, and product code.

The appendices of a futures or option contract (collectively, “contract”) have the same legal force as the contract itself.

Article 27 “Minimum price fluctuation” refers to the minimum change in the price of a contract.

Article 28 The “delivery month” of a futures contract refers to the month, as specified by the contract, in which delivery is to be made against the contract.

The “contract month” of an option contract refers to the month in which the underlying asset of the contract is to expire.

Article 29 “Last Trading Day” of a contract refers to the last day, as specified by the contract, on which the contract may be traded.

Article 30 The trading unit of a contract is “lot.” Futures trading must be conducted in multiples of one (1) lot. The quantity of the underlying assets of a product corresponding to one lot is specified in the product’s contract.

Article 31 A contract is priced in Renminbi or such other currencies as specified by the Exchange. Any contract priced in Renminbi is priced in the unit of yuan.

Article 32 The trading days of the Exchange are Monday through Friday, and the market will be closed on public holidays of the PRC or the dates announced by the Exchange. The specific trading hours for each product on each trading day are announced by the Exchange separately.

Section 4 Fundamental Systems for Trading

Article 33 The Exchange implements margin requirements for futures trading. “Margin” refers to the funds or such stable and liquid securities as standard warehouse receipts and Chinese government bonds that are deposited by futures traders in accordance with relevant rules for trade clearing and performance guarantee.

Article 34 Margin is classified into Settlement Reserve and Trading Margin. Settlement Reserve is the portion of margin not presently in use to maintain current positions in contracts; Trading Margin is the portion of margin already in use to maintain current positions in contracts.

Upon the conclusion of a trade, the Exchange collects Trading Margin at a certain percentage of the contract value or by such other method as it specifies.

The Trading Margin requirement is subject to adjustment by the Exchange, the specifics of which will be separately prescribed in the detailed implementing rules of the Exchange.

Article 35 Futures trading is subject to price limit. The trade price of a contract on a trading day may not be higher or lower than the prescribed price limit. Orders priced beyond the price limit are deemed invalid and cannot be executed.

Article 36 Futures trading is subject to position limit. “Position limit” refers to the maximum position a Member or client is permitted by the Exchange to hold in a particular contract.

Article 37 The Exchange implements a hedging management regime. The Exchange determines the hedging quota of an applicant based on its scope of business and its historical operating results, physicals purchase and sales agreements, and other materials that can reflect its business activities in the spot market.

The hedging quota shall be used in accordance with the applicable rules of the Exchange.

Article 38 The Exchange implements an arbitrage management regime. The Exchange determines the margin requirements and position limits for arbitrage trading based on the particular type of arbitrage activities concerned.

Article 39 Open positions in a futures contract may be closed out by an exchange of futures for physical. A buyer and a seller holding opposite positions in the same futures contract may, after reaching a physicals purchase and sales agreement, jointly apply to the Exchange to close out their respective positions at the close-out price that is agreed upon by both parties and in line with the relevant detailed implementing rules of the Exchange, and then transfer the physicals from the seller to the buyer in accordance with the physicals purchase and sales agreement.

Article 40 The Exchange implements investor suitability requirements for futures trading. Each FB Member shall, in accordance with applicable laws, regulations, and the Rules of the Exchange, assess a client’s risk awareness and tolerance and establish business relations only with suitable clients who will engage in futures trading in a prudent manner.

The Exchange supervises and inspects FB Members for their compliance with the investor eligibility requirements.

Article 41 The Exchange may implement a market maker system for futures trading. Market makers approved by the Exchange may provide two-way quotes and other related services for the futures and option contracts of the designated products in accordance with the Rules of the Exchange and the market maker agreement.

Article 42 Any Member that engages in futures trading shall pay transaction fees, delivery fees, and other relevant fees and charges to the Exchange in accordance with applicable rules. The fee rates will be separately established by the Exchange.

Any FB Member that collects service fees from clients shall withhold the taxes payable by the clients in accordance with the policies of the PRC.

Section 5 Order Placement, Execution, and Price

Article 43 Trading orders supported by the Exchange include limit orders, market orders, cancellation orders, spread orders, and other orders specified by the Exchange.

Article 44 A trading order is only valid on the day it is placed.

The Exchange accepts Members’ buy and sell orders during the order submission window of a call auction and the continuous auction hours.

Article 45 Trading orders placed within the price limit are valid; trading orders placed beyond the price limit are invalid.

A Member’s trading order for opening a position is invalid if its Settlement Reserve is below the minimum balance requirement specified by the Exchange.

Article 46 The Exchange does not accept any cancellation order during the order matching period of a call auction. Unexecuted trading orders may be cancelled during the other hours in which trading orders are accepted.

Article 47 Orders placed in a call auction are matched by the volume maximization principle, i.e., they are executed at the price that maximizes the trading volume for the call auction session. All trades in a call auction are executed at the same price.

Article 48 In a continuous auction session, the order-matching system will arrange buy and sell orders by price-time priority. A bid and an ask are automatically matched and executed when the former is priced higher than or equal to the latter.

“Price priority” means that higher priced bids have precedence over lower priced bids and lower priced asks have precedence over higher priced asks.

“Time priority” means that among trading orders of the same trading direction and price, priority is given to orders earlier placed. The chronological sequence of orders is determined by the time that such orders are received by the Exchange’s system.

Orders executed at the limit price will be matched and executed by close-out priority and time priority.

Article 49 A trade is concluded and in effect once the buy order and sell order are matched and executed. “Last price” of a contract refers to the latest execution price of the contract within the trading hours.

Article 50 The “execution price” of a futures contract refers to the tax-included price to deliver the benchmark deliverables of the contract at a benchmark Certified Warehouse or benchmark delivery point, unless otherwise prescribed by the Exchange.

Article 51 The “opening price” of a contract refers to the execution price of the contract established by the call auction in the five (5) minutes before market open or, if none is established thusly, the first execution price after the call auction.

Article 52 The “closing price” of a contract on a given trading day refers to the last execution price of the contract on that day.

Article 53 The settlement price of a contract on a given day is determined in accordance with the corresponding detailed implementing rules of the Exchange.

Article 54 The listing benchmark price of a newly listed contract is determined by the Exchange.

Chapter 3 Clearing

Article 55 “Clearing” refers to the clearing and transfer of funds conducted by the Exchange against the trading or delivery results of the trading parties based on the published settlement prices and the rules of the Exchange.

Article 56 The Exchange organizes central clearing for futures trades as a central counterparty.

Article 57 The Exchange clears trades for Members. Each FB Member clears trades for its clients.

An FB Member is liable for the performance of futures trades of its clients. Where any client is unable to perform its obligations, the FB Member shall perform them on its behalf and will obtain the right of recovery against it.

Article 58 The margin collected by an FB Member from a client shall not fall below the margin requirement prescribed by the Exchange. An FB Member has the right to adjust the margin requirement for a particular client based on market conditions and the credit standing of the client.

Article 59 The Exchange shall establish rules governing Futures Margin Depository Banks to specify the conditions and procedures for obtaining and terminating an institution’s status as a Futures Margin Depository Bank and the rights and obligations of Futures Margin Depository Banks, and shall supervise their activities.

Article 60 The Exchange opens Dedicated Settlement Accounts with Futures Margin Depository Banks to deposit Members’ margin and other relevant funds.

Each Member shall open a Dedicated Funds Account with a Futures Margin Depository Bank to deposit client margin and to transfer margin and other relevant funds to the relevant account when and as necessary. A Member’s Dedicated Funds Account may only be used for the transfer and settlement of futures-related funds between the Member and its clients or the Exchange.

No FB Member is permitted to misappropriate client funds.

Article 61 The Exchange implements daily mark-to-market.

Article 62 Upon the end of each trading day, the Exchange will clear each Member’s profits and losses, Trading Margin, taxes, transaction fees, and other payables and receivables. A Member may obtain its clearing data via the member service system.

Article 63 A Member shall deposit additional margin if its Settlement Reserve is below the minimum balance requirement specified by the Exchange.

Article 64 A Member shall deposit sufficient funds to meet the required minimum Settlement Reserve balance before market open of next trading day; failing which, the Member will be prohibited from opening new positions if its Settlement Reserve balance is positive but less than the required minimum balance, or be subject to forced liquidation by the Exchange if the Settlement Reserve balance is negative.

Article 65 An FB Member shall maintain detailed transaction records by documenting, on a daily basis and in chronological order, the positions opened, closed, held, and delivered against by clients through the trading of contracts, which shall accurately reflect the financial state of clients such as profits and losses, fees and charges, funds balance, and payments and receipts, and control the trading risks of its clients.

Article 66 The Exchange shall provision, manage, and use the Risk Reserve and the Special Risk Allowance in accordance with applicable rules. The Risk Reserve is used to provide financial guarantees for the operations of the futures market and to cover losses arising from risk events.

The Special Risk Allowance refers to the discretionary surplus reserve provisioned from the after-tax profit of the Exchange to facilitate the resolution of the various risks arising from the operations of the Exchange.

Chapter 4 Delivery

Article 67 Futures delivery may be conducted through physical delivery or such other methods as specified by the Exchange.

Article 68 Physical delivery may take the form of Receipt Delivery, Board Delivery, and other means of delivery prescribed by the Exchange.

“Receipt Delivery” refers to the method of delivery which is completed through a transfer, from the seller to the buyer, of the standard warehouse receipt for the relevant commodity issued by a Certified Warehouse.

“Board Delivery” refers to the method of delivery which is completed through the loading by the seller of the relevant commodity onto the buyer’s truck, railcar, or ship at a Delivery Pricing Point.

Article 69 The Exchange may introduce Bonded Delivery. “Bonded Delivery” refers to the physical delivery of the underlying assets of a futures contract which are under supervision as bonded goods in a special customs supervision area or bonded supervisory location. The rules for Bonded Delivery will be prescribed by the Exchange in the relevant detailed implementing rules.

Article 70 Delivery shall be made for any futures contract that remains outstanding after its Last Trading Day.

Article 71 The delivery against an expired contract may be conducted only in the name of a Member. Delivery by clients shall be conducted through their carrying Members.

Article 72 The benchmark and substitute deliverables of a futures contract and their premiums and discounts are prescribed by the Exchange in the contract specifications or detailed implementing rules.

Article 73 The delivery matching rules and delivery procedures are prescribed by the Exchange in the corresponding detailed implementing rules.

Article 74 Any Member that objects to the arrangements or results of a delivery shall request for reconsideration or re-inspection within the time limit prescribed by the Exchange.

Article 75 The “final settlement price” of a futures contract is the benchmark price for the final settlement of the contract at delivery.

Article 76 Where there is any shortage or overage in the quantity of commodity actually delivered and such difference is within the quantity tolerance, the parties shall calculate the differential delivery payment in accordance with the rules of the Exchange.

Article 77 The premiums and discounts for delivery at non-benchmark delivery points and benchmark delivery points will be separately prescribed by the Exchange.

Article 78 Either of the following circumstances during physical delivery constitutes a delivery default: (i) the seller fails to deliver the standard warehouse receipts or commodities in full within the prescribed period, or, in the case of a Board Delivery, fails to provide deliverables that meet the quality specifications for deliverables; or (ii) the buyer fails to deliver the delivery payment in full within the prescribed period.

Article 79 In case of delivery default, the Exchange may resolve it by requiring payment of default penalty or liquidated damages or by other methods it prescribes, the specifics of which are governed by the relevant rules of the Exchange.

Article 80 A Member shall not refuse to perform delivery obligations on grounds of a default by its client. In the event of a non-performance of delivery obligations, the Exchange is entitled to enforce the performance.

Chapter 5 Certified Warehouses and Standard Warehouse Receipts

Article 81 “Certified Warehouse” refers to a business establishment certified by the Exchange for facilitating the physical delivery against commodity futures contracts.

Certified Warehouses consist of delivery warehouses, factory warehouses, and transit warehouses.

Article 82 Certified Warehouses are determined and then publicly announced by the Exchange.

Article 83 Certified Warehouses shall comply with the rules of the Exchange and accept its supervision.

Article 84 The Exchange is entitled to require a Certified Warehouse to make rectifications or compensate for financial losses or, if the circumstances are serious, revoke its certification and hold it legally liable, if the said Certified Warehouse:

(1) issues false warehouse receipts;

(2) restricts the load-in or load-out of deliverables which is prohibited by the Rules of the Exchange;

(3) divulges any confidential commercial information related to futures trading;

(4) engages in futures trading which is prohibited by relevant laws and regulations; or

(5) engages in any other activity that violates the rules of the Exchange.

Article 85 A “standard warehouse receipt” refers to a document of title that is recognized by and registered at the Exchange by a delivery warehouse or factory warehouse in accordance with the procedures of the Exchange and certifies the commodity owner’s ownership of the physicals or entitles it to pick up (i.e., take delivery of) the physicals.

Standard warehouse receipts are classified into standard delivery warehouse receipts and standard factory warehouse receipts.

Article 86 A “standard transit warehouse receipt” refers to a document of title that is recognized by and registered at the Exchange by a transit warehouse in accordance with the procedures of the Exchange and certifies the commodity owner’s ownership of the physicals or entitles it to pick up the physicals.

Article 87 A Certified Warehouse is liable for compensation if, for reasons attributable to the Certified Warehouse, a holder of a standard warehouse receipt cannot exercise or fully exercise its right under the receipt. Any shortfall in such compensation will be made up by the Exchange in accordance with applicable rules, upon which the Exchange obtains the right of recovery against the Certified Warehouse.

Chapter 6 Information Management

Article 88 The Exchange holds the rights and interests to all basic information arising from futures trading and all information products derived therefrom. Without the consent of the Exchange, no organization or individual may distribute, commercialize, or use such information and products for commercial purposes.

Article 89 The Exchange releases the daily price information and other relevant information such as the necessary statistical materials to the market each trading day.

Article 90 The information released by the Exchange includes contract name, delivery months, opening price, last price, price change, closing price, settlement price, high price, low price, trading volume, open interest and change thereof, Member rankings by trading volume and open positions, the certified storage capacity of each Certified Warehouse, number of standard warehouse receipts and change thereof, and any other information that needs to be released.

Information shall be released on a real-time, daily, weekly, monthly, or annual basis based on its nature.

Article 91 The Exchange shall develop a synchronous quotation and real-time transaction reporting system built on effective telecommunications technologies.

Article 92 The Exchange is not liable if trading for a Member or client is affected by a disruption in the market data relay services of a media outlet when such data are being released by the Exchange without issue.

Article 93 No organization or individual may release any false or misleading information.

Article 94 The Exchange, Members, Certified Warehouses, Futures Margin Depository Banks, and other organizations that facilitate futures trading and their respective staff members shall not divulge any confidential commercial information obtained during the course of their businesses.

The Exchange may provide information to judicial authorities or other government agencies provided it complies with the statutory processes and applicable confidentiality rules.

Article 95 The Exchange may compile and publicly release indices based on the data from futures, options, or spot markets as well as develop or authorize an external organization to develop index products.

Without the consent of the Exchange, no organization or individual may build any index from the information of the Exchange or launch any product related to an index released by the Exchange.

Chapter 7 Risk Control

Article 96 The Exchange may, in view of market risks and the occurrence of same-direction successive price limit hits of contracts, take such measures as adjusting the price limit, adjusting the Trading Margin requirement, adjusting the trading limit, adjusting the transaction fees, carrying out forced liquidation, and carrying out forced position reduction to manage and control risks.

If the risks are not fully mitigated by the foregoing risk control measures, the Exchange shall declare a state of abnormality and its Board of Governors will determine any further course of action to control the risks.

Article 97 The Exchange may set up ongoing surveillance indicators to monitor futures trading activities through a quantitative approach.

Article 98 The Exchange has the right to carry out forced liquidation against any Member or client that exceeds the position limit, fails to meet the Trading Margin requirement in a timely manner as required, or commits any other violation or falls under any other circumstance prescribed by the Exchange.

The method of forced liquidation will be separately established by the relevant detailed implementing rules of the Exchange.

Article 99 Any profit from forced liquidation is handled in accordance with applicable rules. Any expenses and losses incurred, including any additional losses arising from failed liquidation due to market factors, shall be borne by the violator.

Article 100 Where a Member is unable to perform a contract, the Exchange is entitled to take any of the following protective actions against the Member:

(1) suspending it from opening new positions;

(2) carrying out forced liquidation in accordance with applicable rules and using the margin released therefrom for contract performance and compensation;

(3) lawfully disposing of the standard warehouse receipts, securities, and other assets the Member has posted as collaterals;

(4) using the proceeds from Membership transfer and other funds of the Member for contract performance and compensation;

(5) drawing on the Risk Reserve to perform the contract on the Member’s behalf; and

(6) drawing on the Exchange’s own funds to perform the contract on the Member’s behalf.

The Exchange will obtain the corresponding right of recovery against the defaulting Member upon performing the contract on its behalf.

Chapter 8 Handling of State of Abnormality

Article 101 The Exchange may, during the futures trading hours, declare a state of abnormality and take emergency measures to mitigate risks in the event of:

(1) a trading disruption due to any cause not attributable to the Exchange such as earthquake, flood, fire or another force majeure event, computer system fault, or accident;

(2） a clearing or delivery crisis at a Member that is causing or will cause a material impact on the market;

(3) any situation under Article 96 of these Trading Rules and the risks arising from which are not mitigated after the corresponding actions have been taken; or

(4) other situations specified by the Exchange.

In the case of abnormal situation (1) above, the President of the Exchange may take such emergency measures as adjusting the market opening or closing time and suspending trading. In the case of abnormal situation (2), (3), or (4) above, the Board of Governors of the Exchange may take such emergency measures as adjusting the market opening or closing time, suspending trading, adjusting the price limit, raising the Trading Margin requirement, suspending the opening of new positions, requiring the close-out of positions within a prescribed time limit, carrying out forced liquidation, restricting Funds Withdrawals, and carrying out forced position reduction.

Article 102 The Exchange shall file a report with the CSRC before declaring a state of abnormality and taking emergency measures.

Article 103 Where the Exchange declares a state of abnormality and suspends trading, the period of suspension shall not exceed three (3) trading days unless an extension is approved by the CSRC.

Chapter 9 Self-Regulation

Article 104 The Exchange exercises self-regulation over the futures trading-related activities at the Exchange in accordance with applicable laws, regulations, ministry-level rules, the Bylaws of Zhengzhou Commodity Exchange, these Trading Rules, and other relevant rules.

Article 105 Supervision by the Exchange mainly covers:

(1) supervising and examining the observance of futures market laws, regulations, ministry-level rules, and the Rules of the Exchange and controlling market risks;

(2) supervising and examining the market activities and internal management of Members and overseas brokers;

(3) supervising and examining the financial conditions and credit standing of Members and overseas brokers;

(4) supervising and examining the futures-related activities of clients, overseas traders, Certified Warehouses, Futures Margin Depository Banks, and other futures market participants;

(5) investigating and handling violations and mediating and handling futures trading-related disputes; and

(6) supervising other activities that violate the principles of openness, fairness, and impartiality or create market risks.

Article 106 The Exchange shall conduct spot checks or thorough examinations of Members annually with regard to their observance of the Rules of the Exchange, and shall submit the annual plans and results thereof to the CSRC.

Article 107 The Exchange institutes rules governing accounts linked by actual control relationship. Any Non-FB Member or client holding an account linked by actual control relationship shall file the relevant information with the Exchange truthfully and in accordance with the rules of the Exchange.

Speculative positions and number of occurrences of abnormal trading behaviors are calculated on an aggregated basis for accounts linked by actual control relationship.

Article 108 The Exchange implements a large trader reporting regime. Any Member or client whose positions in a particular contract have reached the reporting threshold prescribed by the Exchange shall report its funds and position details to the Exchange.

The Exchange may adjust the reporting threshold based on the level of market risks.

Article 109 The Exchange institutes abnormal trading rules to monitor abnormal trading behaviors. Any suspected illegal or non-compliant activity will be reported to the CSRC in accordance with relevant rules for investigation and further actions.

Article 110 The Exchange regulates algorithmic trading. Any Non-FB Member or client that engages in algorithmic trading shall file relevant information as required by the Exchange.

Article 111 The Exchange shall launch a case investigation into any suspected violation it has identified.

Article 112 The Exchange, in performing its self-regulatory duties, may exercise such powers as conducting investigation and collecting evidence in accordance with applicable rules. Members, clients, overseas traders, overseas brokers, Certified Warehouses, Futures Margin Depository Banks, and other futures market participants shall provide cooperation.

Article 113 Members, clients, overseas traders, overseas brokers, Certified Warehouses, Futures Margin Depository Banks, and other futures market participants shall accept the supervision of the Exchange over their futures activities. The Exchange will, in accordance with applicable rules, impose the necessary restrictions and disciplinary sanctions on any organization or individual that provides false materials, conceals facts, or, through evasion or otherwise, fails to assist or obstructs the performance of duties by the staff members of the Exchange.

Article 114 Where the Exchange has reason to believe that a Member, client, overseas trader, or overseas broker has violated the Rules of the Exchange and such violation is causing or will cause a material impact on the market, the Exchange may take the following provisional actions against the Member, client, overseas trader, or overseas broker to contain the impact of the violation:

(1) restricting Funds Deposits;

(2) restricting Funds Withdrawals;

(3) restricting the opening of new positions;

(4) raising the margin requirement;

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

(6) carrying out forced liquidation.

Except for the provisional measures (1), (2), and (3) of the preceding paragraph which may be decided by the President of the Exchange, all other provisional measures shall be promptly reported the CSRC after they are taken.

The Exchange shall notify the Member, client, overseas trader, or overseas broker that is subject to a provisional action through a documented method such as a written notice or recorded telephone call and shall state the reasons for taking the action.

Article 115 The Exchange may, after initiating a case investigation against a Member, client, overseas trader, overseas broker, Certified Warehouse, Futures Margin Depository Bank, or other futures market participant for a suspected major violation during futures-related activities, take the corresponding measures to contain the impact of such violation.

Article 116 Subject to the approval of the Board of Governors of the Exchange, a special investigation commission consisting of Members’ representatives, the Exchange’s staff members, and other relevant individuals may be formed to investigate any major issue that has arisen during the course of futures trading. The special investigation commission shall during its existence exercise supervisory duties in accordance with these Trading Rules. Members of the special investigation commission shall withdraw from any matter in which they have an interest.

Article 117 Where any staff member of the Exchange is not able to properly perform his supervisory duties, any Member, client, overseas trader, overseas broker, Certified Warehouse, Futures Margin Depository Bank, or other futures market participant has the right to file a complaint or tip with the Exchange or the CSRC. Severe sanctions shall be imposed for any substantiated complaint or tip.

Article 118 The Exchange shall institute rules on violations to handle such activities.

Chapter 10 Handling of Disputes

Article 119 Any dispute between Members, clients, overseas traders, overseas brokers, Certified Warehouses, Futures Margin Depository Banks, and other futures market participants over futures-related activities may be resolved by and among themselves or submitted to the Exchange for mediation.

Article 120 The party that requests for mediation by the Exchange shall submit a mediation application. The mediation opinions of the Exchange are subject to confirmation by the parties. The mediation opinion letter comes into force upon the signature and seal of both parties.

Article 121 Any dispute between the Exchange and a Member, client, overseas trader, overseas broker, Certified Warehouse, Futures Margin Depository Bank, or other futures market participant, if not resolved through mutual consultation, shall be submitted to an arbitration institution located within the Chinese mainland or a people’s court, and be governed by the PRC laws.

Article 122 The Exchange is not liable for any loss arising from its performance of duties in accordance with laws, regulations, ministry-level rules, and the Rules of the Exchange, unless such loss is attributable to the willful intent or gross negligence by the Exchange.

Chapter 11 Ancillary Provisions

Article 123 The Exchange may make detailed implementing rules or measures in accordance with these Trading Rules.

Article 124 The making and amendment of these Trading Rules is subject to the approval of the General Assembly and the CSRC.

Article 125 The Board of Governors of the Exchange reserves the right to interpret these Trading Rules.

Article 126 These Trading 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.)