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Notice on Investigation and Penalties for Violations of Relevant Rules and Regulations in August 2020

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 August 2020 are listed as follows:

In the aspect of administration of abnormal trading behaviors, the Exchange has dealt with a total of 189 cases, among which 50 cases were self-trades,134 cases were frequent order cancellations,3 cases were exceeding the limit of placing and cancellation of large-amount orders,2 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 by phone through members and placed 46 clients and 3 groups of accounts with actual control relationship on the Exchange’s watch list, notified 61 abnormal trading behaviors to all the members. The Exchange has suspended 10 clients 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 116 groups of 279 clients that exist the actual control relationship and urged 3 group of 9 clients to cooperate with the investigation of the actual control relationship.

In the aspect of inspecting cases violating trading rules,the Exchange has dealt with 15 cases suspected of violation trading rules,of which 1 case was self-trade affecting the contract price,1 case was suspected of accommodation trade,4 cases were price fluctuation caused by program errors or market price orders,1 case for existing actual control relationship but has not reported,1 case was position liquidation exceeding the time,7 cases were wrong order. The Exchange has filed and investigated one of the cases suspected of violating trading rules.The Exchange reminds the investors to be in compliance with its rules in the trading activities and cooperate with the reporting of actual control relationship accounts.


Shanghai Futures Exchange
Sep.7 2020