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

Shanghai Futures Exchange (hereinafter referred to as “The Exchange”) has been on continuous efforts in investigating and penalizing violations of relevant rules and regulations, so as to strengthen the risk management of the futures market, regulate the futures trading activities and protect the legitimate rights and interests of futures market participants. The enforcement against such violations in December 2019 is listed as follows:
In the aspect of administration of abnormal trading behaviors,INE has dealt with a total of 113 cases of abnormal trading behaviors, among which 48 case were self-trades and 55 cases were frequent order cancellations, 7 cases for exceeding the limit of placing and cancellation of large-amount orders and 3 cases 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 the relevant clients of the above mentioned abnormal trading behaviors by phone through members and placed 20 clients on the Exchange’s watch list, notified 30 abnormal trading behavior to all the members.The Exhcage has suspended 5 clinets and 2 groups of accounts with actual control relationship from opening new positions on the relevant futures contracts and notified to the market.
In the aspect of identification and cooperative investigation of accounts with actual control relationship, The Exchange has identified 59 group of 139 clients that exist the actual control relationship and urged 1 group of 3 clients to cooperate with the investigation of the actual control relationship.
In the aspect of inspecting cases violating trading rules, The Exchange has filed and investigated one of the cases suspected of accommodation trade in December. And the Exchange also found some price fluctuation mainly caused by wrong orders,program errors of trading software and market price orders.The Exchange has reminded investors to be in compliance with its rules in the trading activities.
The Exchange hereby notifies as the above.

Shanghai Futures Exchange
Jan 9. 2020

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