CHINA: SHFE Publishes Notice on Investigation and Penalties for Violations of Relevant Rules and Regulations

Monday September 13 2021

On 10^th September 2021, the Shanghai Futures Exchange (SHFE) announced that it has been on continuous efforts in investigating and penalizing violations of relevant rules and regulations, 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 2021 are listed as follows:

In the aspect of administration of abnormal trading behaviors, the Exchange has dealt with a total of 70 cases, among which 20 cases were self-trades, 43 cases were frequent order cancellations, 3 cases were exceeding the limit of placing and cancellation of large-amount orders, 4 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 12 clients and 3 groups of accounts with actual control relationship on the Exchange’s watchlist notified 20 abnormal trading behaviors to all the members. The Exchange has suspended 4 clients and 1 group of accounts with actual control relationship 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 171 groups of 426 clients that exist the actual control relationship and urged 7 groups of 31 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 8 cases suspected of violation trading rules of which 2 cases were suspected of accommodation trade 3 cases for existing actual control relationship but have not reported,1 case was price fluctuation caused by market price orders, 2 cases were wrong order. The Exchange reminds the investors to be in compliance with its rules in the trading activities and report accounts with actual control relationship.

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