(Released and implemented on March 20,2018, revised on November 26,2021 for the first time,October 20,2026 for the second time)

Chapter 1 General Provisions

Article 1 These Rules of the Shanghai International Energy Exchange for the Administration of Accounts Involving Actual Control Relationship (hereinafter referred to as the “Rules”) are formulated to facilitate the effective administration of accounts involving actual control relationship, safeguard the orderliness of the futures market, and promote its sound development, in accordance with the General Exchange Rules of the Shanghai International Energy Exchange, the Risk Management Rules of the Shanghai International Energy Exchange (hereinafter referred to as the “Risk Management Rules”), the Enforcement Rules of the Shanghai International Energy Exchange (hereinafter referred to as the “Enforcement Rules”) and other relevant rules.

Article 2 Futures Firm Members (hereinafter referred to as “FF Members”), Overseas Special Brokerage Participants (hereinafter referred to as “OSBPs”), and Overseas Intermediaries (collectively, “Account Opening Institutions”) shall inform their Clients of the obligation to file their accounts involving actual control relationship, duly supervise such accounts, archive and securely store materials relating to account filing and administration, and keep the information filed by the Clients confidential.

Article 3 When engaging in futures trading, Non-Futures Firm Members (hereinafter referred to as “Non-FF Members”), Overseas Special Non-Brokerage Participants (hereinafter referred to as “OSNBPs”), and Clients shall comply with the laws, regulations, and administrative rules of the People’s Republic of China and the business rules of the Shanghai International Energy Exchange (hereinafter referred to as “the Exchange”) and accept the administration of the Exchange regarding accounts involving actual control relationship. Clients shall additionally accept the administration of Account Opening Institutions , regarding such accounts.

Chapter 2 Account Identification

Article 4 “Actual control” refers to the action or ability of any person (whether an individual or institution) to control or to significantly influence the trading decisions of another person (whether an individual or institution) by virtue of its powers including the power to manage, use, receive incomes from, or dispose of the futures account of the latter person.

Article 5 By the principle of “substance over form”, a person is deemed to have actual control over the futures account of another person during futures trading if the first person:

(1) is the controlling shareholder of the latter person, defined as any person whose contribution represents 50% or more of the total contribution in the latter person, or any shareholder who holds 50% or more of the total shares of the latter person, or any shareholder who, despite having a contribution or shareholding at less than 50%, can nevertheless exercise the voting rights granted by its contribution or shareholding to significantly influence the decisions of the shareholders’ meeting or the shareholders’ general meeting of the latter person;

(2) is the authorized person for account opening, authorized trader, authorized person for fund transfer, settlement statement verifier, or any other type of authorization engaged by the latter person;

(3) is the legal representative, principal partner, director, supervisor, senior manager, etc. of the latter person, or shares the same legal representative, principal partner, director, supervisor, or senior manager, etc. with the latter person;

(4) is the spouse of the latter person;

(5) is a parent, child, or sibling of the latter person and has the decision-making power or a significant influence over the day-to-day trades made through the futures account of the latter person;

(6) has the decision-making power or a significant influence over the day-to-day trades made through the futures account of the latter person by virtue of investment, contractual or financing arrangement, or other arrangements;

(7) has identical trading behaviors with the latter person and either person provides futures trading funds to the other person, or the first person has identical trading behaviors and trading terminal information with the latter person;

(8) has the decision-making power or a significant influence over the day-to-day trades made through two or more futures accounts of the latter person; or

(9) is under any other circumstances prescribed by the China Securities Regulatory Commission or identified by the Exchange.

Chapter 3 Account Filing

Article 6 China Futures Market Monitoring Center Co., Ltd. (hereinafter referred to as “CFMMC”) is responsible for handling the filing of information relating to accounts involving actual control relationship. Any person holding such an account, whether such person is controlling or being controlled, shall voluntarily file relevant information with CFMMC through its carrying Account Opening Institution..

Non-FF Members and OSNBPs shall make filings directly with the Exchange, who shall then forward relevant information to CFMMC. Non-FF Members and OSNBPs shall comply with the applicable rules of CFMMC when filing their accounts and providing relevant materials.

Article 7 The Exchange and CFMMC shall establish an information sharing mechanism with respect to accounts involving actual control relationship and use account information in accordance with applicable rules.

Article 8 Clients holding any account involving actual control relationship as defined by the identification criteria shall complete account filing within ten (10) trading days after receiving its unique CFMMC account code.

Non-FF Members and OSNBPs with any account involving actual control relationship as recognized under the identification criteria shall complete account filing within ten (10) trading days after becoming Members or OSNBPs of the Exchange.

Article 9 Any Non-FF Member, or OSNBP or Client who is involved in a change of actual control relationship shall voluntarily file for such change with CFMMC within ten (10) trading days through the corresponding filing entity.

Any Non-FF Member, or OSNBP or Client applying for adding an actual control relationship shall voluntarily file for such addition with CFMMC through the corresponding filing entity.

Any Client intending to remove an actual control relationship shall submit an application to CFMMC through its Account Opening Institution to be forwarded to the Exchange for review. The Client shall also submit, through its Account Opening Institution, such relevant explanatory materials as required by the Exchange.

Any Non-FF Member or OSNBP intending to remove an actual control relationship shall directly apply to the Exchange and provide such explanatory materials as required by the Exchange.

Article 10 If the Exchange discovers, during its day-to-day self-regulation, an account that is suspected of involving actual control relationship but is not filed, and if the account holder is a Client that engages in futures trading through an FF Member, the Exchange is entitled to inquire into the account directly or through the FF Member; if the account holder is a Client that engages in futures trading through an OSBP, the Exchange is entitled to inquire into the account directly or through the OSBP; if the account holder is a Non-FF Member or an OSNBP, the Exchange is entitled to inquire into the account directly.

If the Client engages in futures trading through an Overseas Intermediary, the relevant FF Member or OSBP shall promptly forward the inquiry to such Overseas Intermediary, who shall inquire the Client about the account.

Non-FF Members, OSNBPs, and Clients concerned shall respond to the inquiry in writing and furnish relevant materials. The Account Opening Institution shall timely forward the written response and materials to the Exchange.

Article 11 Any Non-FF Member, OSNBP, or Client acknowledging the existence of an actual control relationship during the inquiry shall make account filing in accordance with the prescribed procedures. Any Non-FF Member, OSNBP, or Client denying the existence of an actual control relationship during the inquiry shall submit written explanations and sign a Compliance Statement and Undertaking (see the official website of the Exchange), following which the Exchange will review the written explanatory materials and take the following actions accordingly:

(1) if there are concrete facts and reasons to demonstrate that the account does not involve actual control relationship, the Exchange will identify the account as such;

(2) If the facts and reasons given are inadequate and through investigation the Exchange determines that the criteria for determining an actual control relationship are met, the Exchange will require the Non-FF Member, OSNBP or Client to make account filing. If the Non-FF Member, OSNBP or Client fails to complete the filing within the prescribed time, the Exchange may determine, in accordance with these Rules, that an actual control relationship exists. If, after investigation, the Exchange is temporarily unable to determine whether the criteria for determining an actual control relationship are met, the Exchange may include the Non-FF Member, OSNBP or Client into its watch list. 

Article 12 The Exchange may adopt such measures against the Non-FF Member, OSNBP or Client as giving a verbal alert, issuing a warning letter, limiting the opening of new positions, and limiting funds withdrawals if any Non-FF Member, OSNBP or Client:

(1) is involved in an actual control relationship but failed to truthfully file relevant information;

(2) fails to, or fails to truthfully respond to, any inquiry or investigation of the Exchange, or elects to withhold facts, or evades such inquiry or investigation;

(3) fails to file an actual control relationship to circumvent the Exchange’s administration of abnormal trading behaviors, risk control management, or the like; or

(4) provides false materials to apply for the removal of an actual control relationship.

Article 13 If an Account Opening Institution falls under any of the following circumstances, the Exchange will order it to make corrections and may adopt such measures as giving a verbal alert, issuing a warning letter, and issuing an opinion letter:

(1) failing to promptly, accurately, and fully inform Clients of the rules of the Exchange regarding accounts involving actual control relationship;

(2) failing to promptly, accurately, and fully record and update information regarding accounts involving actual control relationship;

(3) condoning, inducing, encouraging, or assisting Clients to make false filing or conceal facts;

(4) failing to keep the Clients’ materials secure according to applicable rules;

(5) failing to provide assistance in the inquiry of accounts involving actual control relationship as required by the Exchange, or willfully delaying progress or concealing or omitting facts; or

(6) any other circumstances determined by the Exchange.

Chapter 4 Account Administration

Article 14 The Exchange shall consider the orders, trades, positions, and other relevant metrics of a group of accounts with actual control relationship on an aggregate basis when applying such rules as position limit, intraday open position volume, abnormal trading behaviors management, and large trader position reporting.

Article 15 Where a group of accounts with actual control relationship involve only Clients, the Exchange shall limit the aggregate size of general and arbitrage positions under these accounts to within the sum of (a) the general position limit of futures contract during different trading periods for a single Client as prescribed by the Risk Management Rules and (b) the combined arbitrage quota for all group members as approved by the Exchange during those periods.

Where a group of accounts with actual control relationship involve Non-FF Members or OSNBPs, the Exchange shall limit the aggregate size of general and arbitrage positions under these accounts to within the sum of (a) the general position limit of futures contract during different trading periods for a single Non-FF Member or OSNBP as prescribed by the Risk Management Rules and (b) the combined arbitrage quota for all group members as approved by the Exchange during those periods.

Article 16 If a combined position over-limit occurs with respect to a group of accounts with actual control relationship, the Exchange will, after market close on the same day, notify the relevant FF Members or Overseas Special Participants to require the Clients concerned to close their positions. If the Clients engage in futures trading through Overseas Intermediaries, the relevant FF Members or OSBPs shall promptly forward the alert notice to the Clients via the Overseas Intermediaries.

If any of such Clients fail to complete the position closing within the first trading session of the next trading day, the Exchange will implement forced position liquidation, one Client at a time, by descending combined size of their respective general positions and arbitrage positions, until the combined size of positions held by the whole group complies with the position limit prescribed by the Exchange.

Article 17 The aggregate position opening volume in a listed product or futures contract within a group of accounts involving actual control relationship in a single trading day shall not exceed the intraday open position volume for a single Client prescribed by the Exchange.

Article 18 Where, with respect to a group of accounts with actual control relationship, the aggregate self trading volume, number of orders canceled, number of large-amount orders canceled, intraday open position volume, or any other relevant metric reaches the threshold for the Exchange to take self-regulatory actions under the Rules of the Shanghai International Energy Exchange for the Administration of Abnormal Trading Behaviors, the Exchange shall do so against the group of accounts.

Chapter 5 Miscellaneous

Article 19 Unless otherwise provided by these Rules, Non-FF Members and OSNBPs shall be administered by reference to the provisions applicable to Clients.

Article 20 Any violation of these Rules shall be handled by the Exchange in accordance with the Enforcement Rules.

Article 21 The Exchange reserves the right to interpret these Rules.

Article 22 These Rules shall be effective as on October 20, 2026.