Detailed Trading Rules of Dalian Commodity Exchange (for Public Consultation Only)
Chapter I General Provisions
Article 1 These Rules are formulated pursuant to the Trading Rules of Dalian Commodity Exchange for the purposes of standardizing the futures trading conducts, protecting the lawful rights and interests of the parties to the futures trading and ensuring the smooth carrying out of the futures trading of Dalian Commodity Exchange (the “Exchange”).
Article 2 The Exchange, its Members, the overseas brokers and the clients shall comply with these Rules.
Chapter II Seat Management
Article 3 The trading seat shall be the channel where the Member inputs the trading orders into the Exchange's computer trading system to participate in the trading.
The trading seats shall be divided into the floor trading seats and the remote trading seats. The remote trading shall refer to the manner of the trading through which the Member directly inputs the trading orders and participates in the trading of the Exchange at its business place through the communication system connected with the Exchange's computer trading system.
Article 4 The Member shall obtain one (1) floor trading seat after obtaining its membership. The number of the trading seats may be increased after being approved by the Exchange.
The increase of trading seats shall obligate the Member to pay the seat use fee to the Exchange subject to the charging standards formulated and promulgated by the Exchange.
Article 5 The Member’s increase of trading seats shall refer to the increase of the Member’s trading channels only; and the Exchange’s management provisions for such Member’s position limit, risk control and otherwise shall remain unchanged.
Article 6 The Member which applies for increasing floor trading seats shall satisfy the following conditions:
(i) Having good operations;
(ii) Within the three (3) consecutive months as of the application date, ranking the top fifty (50) members which have the most trading volume, or having a larger number of the Exchange’s futures trading; and
(iii) Other conditions required by the Exchange.
Article 7 The Member which applies for increasing the floor trading seats shall execute an agreement with the Exchange through the member service system and file to the Exchange an application for increasing trading seats; and the contents of the application shall mainly include the types of the seat(s), the scope of accepting returns and otherwise.
The Exchange may require the Member to provide other materials, if necessary.
Article 8 After the Exchange approve the application for increasing floor trading seat(s), the Member shall complete the relevant entrance formalities at the Exchange within ten (10) days. Any delay without due reason will entitle the Exchange to cancel the floor trading seats applied for by the Member.
Article 9 The Member which applies for a remote trading seat shall satisfy the following conditions:
(i) Having good operations;
(ii) The communication and fund transfer conditions of the place where the agency is located that intends to apply for operation satisfy the Exchange’s requirements for futures trading operation;
(iii) Having a perfect remote trading management system; and
(iv) Having the facilities and management of the remote trading system satisfied with the CSRC’s and the Exchange’s relevant requirements for technical management norms.
Article 10 The Member which applies for a remote trading seat shall execute an agreement with the Exchange through the member service system and submit to the Exchange the following materials:
(i) The application for increasing the trading seat(s), the contents of which shall include the type of the seats, the scope of accepting returns, the installation site, the business license number and otherwise;
(ii) The photocopy of the business license of the agency that intends to apply for operation;
(iii) The infrastructures and staffing of the remote trading system; and
(iv) Other materials to be submitted as the Exchange requires.
Article11 The Exchange shall make a reply within twenty (20) days after receipt of the materials of that are submitted by the Member and used to apply for the remote trading seat.
Article 12 The Member shall pay the seat use fee to the Exchange within ten (10) trading days after receipt of the reply that the Exchange agrees its carrying out of the remote trading.
Article 13 After the Member files an application for opening the remote trading system, the Exchange shall notify the specific opening date to the Member.
Article 14 The floor trading seat of the Member which has opened the remote trading shall be still reserved; and during the trading period, in case the Member’s remote trading seat fails to work normally, the Member shall carry out trading through its floor trading seat.
The Member shall be solely liable for any consequences arising out of or in connection with the abnormal use of the remote trading seat under the circumstance of its failure to send a floor trader to be at the floor.
Article 15 The Member shall strengthen the management of its remote trading and the maintenance of the remote trading system and shall be obligated to keep confidential the software interface and documents and materials provided by the Exchange. Any replacement or technical readjustment of any main facilities shall require the Exchange’s prior consent. The relocation of the remote trading seat from the original registered place shall be subject to the Exchange’s examination and approval. The Exchange shall have the right to supervise and inspect the use of the remote trading seats.
Article 16 Any of the following circumstances may entitle the Exchange to cancel the Member’s increased trading seats:
(i) Having any inaccuracy in the application materials;
(ii) Wholly or partially leasing, contracting or otherwise transferring the seat(s) to any other agency or individual;
(iii) Having disordered management or material irregularities;
(iv) Failing to satisfy the conditions for using the trading seats;
(v) Using the increased trading seats to engage in other activities other than trading;
(vi) Being applied by the Member for cancellation; or
(vii) Other circumstances which will result in cancellation as held by the Exchange.
Article 17 The usage fee will not be refunded in case the Member terminates using the trading seat or the increased trading seats are cancelled by the Exchange.
Article 18 In case the Member loses its membership of the Exchange, its use of all the trading seats it owns shall be terminated.
Article 19 In case ten (10) percent or more Members cannot trade due to the failure in any of the computer terminals, communication systems or other trading facilities, the Exchange shall temporarily suspend trading until the failure is eliminated.
Article 20 No business such as application, modification and cancellation shall be conducted by the Exchange during the night trading session.
Chapter III Management of Floor Traders
Article 21 The floor trader shall be the person who is appointed by the Member and accepts on behalf of the Member at the trading floor the Member’s trading orders to carry out futures trading; and the Member shall be liable for his or her conducts in connection with the trading at the trading floor.
Article 22 The handling of the floor trader’s certificate shall be subject to the inputting through the member service system of the identity, futures practicing qualification certificate and other relevant information as required by the Exchange.
Article 23 Each trading seat shall permit two (2) floor traders at the floor unless otherwise by the Exchange in the special circumstance.
Article 24 The floor trader may enter the trading floor thirty (30) minutes prior to the market opening on each trading day to prepare for the market opening and shall leave the trading floor within thirty (30) minutes after the market closing. The floor trader shall not enter or leave the trading floor without permission unless otherwise permitted by the floor affairs managers in a special circumstance.
The floor trader shall not be absent during the trading sessions, and the Member shall be solely liable for any consequences arising out of in connection with his or her absence.
Article 25 The floor trader shall wear the effective badge and designated special dressing at the trading floor.
Article 26 The floor trader shall protect any and all facilities at the trading floor and shall operate strictly subject to the Exchange’s management provisions for the computer equipment and devices at the trading floor; and any damage thereto will obligate the compensation as per the prices and result in the punishment pursuant to the applicable provisions.
Article 27 The floor trader’s entering or leaving the trading floor with any trading equipment or devices shall be subject to the approval by the Exchange.
Article 28 The floor trader shall be subject to the management by the Exchange’s floor affairs managers.
Article 29 The floor trader shall timely deliver the Exchange’s document, notices and other materials to his or her Member.
Article 30 The floor trader shall properly keep the trading passwords; and the Member shall be solely liable for any consequences arising out of or in connection with the disclosure of the trading passwords.
Article 31 The floor trader shall not commit any of the following acts:
(i) Accepting the trading orders from any other entity or individual;
(ii) Offering any consultancy opinions to any other entity or individual;
(iii) Carrying out futures trading for himself or herself;
(iv) Borrowing, or using without permission, any other Member’s telephone or trading terminal;
(v) Falsifying or lending his or her floor trader’s certificate; or
(vi) Any other acts prohibited by the Exchange.
Article 32 In case of the Member’s dismissal or replacement of a floor trader or the floor trader’s resignation from the former Member, the formalities of cancelling authorization shall be timely completed at the Exchange and the floor trader’s certificate shall be returned. The Member which fails to timely collect the floor trader’s certificate shall timely notify the relevant division of the Exchange and the Member’s liability shall be exempted after receiving the Exchange’s acknowledgement of receipt thereof. The Member shall be solely liable for any consequences arising out or in connection with no timely completion of the cancellation formalities or returning the floor trader’s certificate.
Article 33 For the person whose authorization as a floor trader has been cancelled, the Exchange shall not accept his or her registration application for acting as a floor trader at another Member within three (3) months except for the circumstances of the consolidation, division or insolvency of the Member or the consent by his or her former Member.
Chapter IV Trading Sessions, Quotation Information, Trading Orders and Bidding Principles
Article 34With respect to the futures trading, there shall be five (5) trading days (except for the national statutory holidays) in each week. Each trading day shall be divided into the night trading period which has one (1) night trading session with the specific trading time to be separately notified by the Exchange, and the day trading period which has three (3) trading sessions consisting of the first session from 9:00 through 10:15, the second session from 10:30 through 11:30 and the third session from 13:30 through 15:00. The products to which the night trading will apply shall be separately published by the Exchange.
The Member may carry out the night trading only after it completes any and all preparation work with respect to the personnel allocation, trading facilities and business policies. The night trading shall be carried out solely through the remote trading seat.
Article 35The Exchange shall timely release the following information related to the trading:
(i) Opening price. In respect of a certain futures contract, the opening price shall refer to the closing price generated after centralized bidding within five (5) minutes prior to the market-opening. In case no closing price is generated after the centralized bidding, the first closing price after the market opening shall be the opening price. The first closing price shall be fixed pursuant to Article 60 of the Trading Rules of Dalian Commodity Exchange, and then the immediately previous closing price shall be the closing price of the immediately previous trading day, and the immediately previous closing price of the newly listed contract shall be the listed benchmark price;
(ii) Closing price. In respect of a certain futures contract, the closing price shall refer to the last closing price of the then-current trading. In case of no closed contract, the then-current closing price shall be the then-current settlement price;
(iii) Highest price. In respect of a certain futures contract, the highest price shall refer to the highest closing price of the closing prices during a certain period;
(iv) Lowest price. In respect of a certain futures contract, the lowest price shall refer to the lowest closing price of the closing prices during a certain period;
(v) Latest price. In respect of a certain futures contract, the latest price shall refer to the real-time closing price during the trading period on a certain trading day;
(vi) Increase and decrease. In respect of a certain futures contract, the increase and decrease shall refer to the difference between the latest price during the trading period on a certain trading day and the settlement price of the immediately previous trading day;
(vii) Highest buying price. In respect of a certain futures contract, the highest buying price shall refer to the real-time highest price when the buyer applies for buying on the then-current day;
(viii) Lowest selling price. In respect of a certain futures contract, the lowest selling price shall refer to the real-time lowest price when the seller applies for selling on the then-current day;
(ix) Buying quantity. In respect of a certain futures contract, the buying quantity shall refer to the order-placing quantity being applied for buying at the highest but unclosed price in the Exchange’s trading system on the then-current day;
(x) Selling quantity. In respect of a certain futures contract, the selling quantity shall refer to the order-placing quantity being applied for selling at the lowest but unclosed price in the Exchange’s trading system on the then-current day;
(xi) Settlement price. In respect of a certain futures contract, the settlement price shall refer to the weighted average price of the closing prices during the trading period of the then-current day on the basis of the closing quantities. In case of no closed contracts, the then-current settlement price shall be fixed pursuant to the applicable provisions of the Detailed Settlement Rules of Dalian Commodity Exchange. The settlement price shall be the basis for settling the profit and loss of the non-liquidated contracts of the then-current day and for determining the price limits of the immediately following trading day;
(xii) Closing quantity. In respect of a certain futures contract, the closing quantity shall refer to the bilateral quantities of all the closed contracts on the then-current day; and
(xiii) Open position quantity. The open position quantity shall refer to the bilateral quantities of the non-liquidated contracts held by the futures traders.
Article 36 In respect of a newly listed contract, the listed benchmark price shall be determined and released in advance by the Exchange. The listed benchmark price shall be the basis for determining the price limits of the immediately following trading day.
Article 37 The price limits of the newly listed contract shall be two times the price limits prescribed for the contract; and in case there is closing, the price limits prescribed for the contract shall prevail on the immediately following trading day; or in case there is no closing on the then-current day, the price limits of the immediately previous price shall prevail on the immediately following trading day. In case there is no closing for three (3) consecutive trading days, the Exchange may properly adjust the listed benchmark price.
The Exchange may release a new benchmark price for the contract which was once closed but currently without no open contracts.
Article 38 The types of the trading orders shall be:
(i) Price limitation order: the order that the closing must be made subject to the limited price or a better price upon the implementation of such order by the Exchange’s computer order-matching system;
(ii) Market price order: the buying (selling) order, as applicable, that the prices of the price limits are used to participate in the trading upon the implementation of such order by the Exchange’s computer order-matching system;