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Notice on Investigation and Penalties for Violations of Relevant Rules and Regulations in December 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 December 2020 are listed as follows:
  In the aspect of administration of abnormal trading behaviors, the Exchange has dealt with a total of 145 cases, among which 52 cases were selftrades,90 cases were frequent order cancellations,1 case was 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,placed 27 clients and 4 groups of accounts with actual control relationship on the Exchange’s watchlist,notified 38 abnormal trading behaviors to all the members. The Exchange has suspended 6 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 86 groups of 185 clients that exist the actual control relationship.
  In the aspect of inspecting cases violating trading rules,the Exchange has dealt with 10 cases suspected of violation trading rules,of which 4 cases were suspected of accommodation trades,2 cases were price fluctuation caused by program errors,4 cases were wrong orders.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 report accounts with actual control relationship.

Shanghai Futures Exchange
January 12,2021