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Notice on Investigation and Penalties for Violations of Relevant Rules and Regulations in January 2019

    To strengthen risk management and frontline regulation of the futures market, well regulate futures trading behaviors and protect the legitimate interests of the market participants, Shanghai Futures Exchange(hereinafter referred to as “The Exchange”) has made continuous efforts to investigate and penalize violations of relevant rules and regulations.The enforcement against such violations in January 2019 is listed as follows:
      In the aspect of administration of abnormal trading behaviors, the Exchange has dealt with a total of 72 cases of abnormal trading behaviors, among which 36 cases were self-trades that exceed the limits, 32 cases were frequent order cancellations, three cases for exceeding the limit of placing and cancellation of large-amount orders, and one case for the combined size of positions within a group of accounts with actual control relationship exceeding the position limit prescribed by the Exchange.The Exchange has separately notified 76 relevant members of the abnormal trading behaviors above by phone, and placed 7 clients on the Exchange’s watch list, notified 7 abnormal trading behaviors to all the members.
    In the aspect of identification and investigation coordination of accounts with actual control relationship,the Exchange has identified 39 groups of 82 clients that have reported the actual control relationship.
      In the aspect of examining cases suspected of violating trading rules, the Exchange has examined seven cases suspected of violating trading rules and has talked with one client, found no violation. In January, the Exchange has made one written decision on the case violating trading rules, given two clients a criticism by circulating a notice and suspended from opening new positions, recorded the written decision into the credit file of China’s capital market.
       The Exchange hereby notifies the above.

Shanghai Futures Exchagne
February 21, 2019