Wednesday January 19 2022

News Source: Global Exchanges

Focus: General - Global Exchanges

Type: General

Country: China


On 18th January 2022, Shanghai International Energy Exchange (INE) releasedĀ a circular to enhance the role of market makers, improve the functioning of the futures and options markets, and better serve the real economy, the Shanghai International Energy Exchange (ā€œINEā€) now accepts applications for new market makers for relevant INE futures and options products in accordance with theĀ Market-Making Management Rules of the Shanghai International Energy Exchange. Details about this application are as follows:

Ā Products Concerned

Futures: Crude oil (SC), TSR 20 (NR), Low sulfur fuel oil (LU), Bonded copper (BC).

Options: Crude oil options.

Application Requirements

  • Having net assets of no less than RMB 50 million or its equivalent in foreign currency.
  • Having specialized agencies and personnel in charge of the market-making business, and market-making personnel familiar with the relevant laws and regulations as well as INEā€™s business rules.
  • Having a sound plan for the market-making business, an internal control system, and a risk management system.
  • Having no record of severe violation of laws or regulations in the past three years.
  • Having a stable and reliable technology system for the market-making business.
  • Having the experience recognized by INE in trading, market-making, or simulated market-making; and
  • Other requirements prescribed by INE.

Ā Materials for Application

  • An Application Form for Market Maker QualificationĀ with the applicantā€™s common seal (if any) signed by its legal representative or authorized signatory (Appendix 1).
  • A photocopy of the applicantā€™s Business License bearing its common seal or notarized and lawfully authenticated materials on its legitimate establishment.
  • The original of the latest audited financial statement, or a photocopy bearing the common seal of the accounting firm or bearing the signature of the authorized signatory of the accounting firm or the auditing firm. In any case, a paging seal should be stamped.
  • Post setting and job responsibility of the market-making department, and the name list and resumes of the person-in-charge and other personnel for the market-making business (Appendix 2).
  • An implementation plan for the market-making business, internal control system, and risk management system (Appendix 3 for key points of reference). All these documents should be stamped with a paging seal.
  • AĀ Letter of CommitmentĀ on no severe violation of laws or regulations in the past three years (Appendix 4).
  • A statement on its technology system for the market-making business (Appendix 5).
  • A statement on its market-making or simulated market-making; and
  • Other materials required by INE and, for a risk management subsidiary of a securities company or futures firm, a photocopy of itsĀ Filing Letter of the China Futures Association on Market-making Business.

Requirements for Submission

  • Form of Materials: All application materials should be submitted in electronic format and, for Appendices 1 and 4, in paper format as well. Both electronic and paper materials should bear the applicantā€™s common seal. For existing market makers for INE futures or options products, only Appendices 1 and 4 are needed.
  • Order of Materials: Please number the required materials by referring to the above ā€œMaterials for Applicationā€ section and submit them together with a list.
  • Name of Materials: Please name the materials in the format of ā€œApplicant Nameā€”Application Materials for Shanghai International Energy Exchange Market Maker.ā€
  • Deadline of Submission: Please submit the electronic and paper materials respectively by email and post before January 25th, 2022 and call us to confirm their receipt.
  • Applicants who do not meet the application requirements or provide incomplete application materials will be ineligible for the subsequent comprehensive assessment. INE may require additional materials or conduct on-site inspection as necessary.

Click on the above link for further information