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

Tuesday April 11 2023

On 10^th April 2023, Shanghai Futures Exchange (SHFE) published notice on 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 March 2023 are listed as follows:

• In the aspect of administration of abnormal trading behaviors, the Exchange has dealt with a total of 24 cases, among which 19 cases were self-trades,5 cases were exceeding the limit of placing and cancellation of large-amount orders. The Exchange has separately notified the relevant clients by phone through members, placed 2 clients and 1 group of accounts with actual control relationship on the Exchange’s watchlist, notified 3 abnormal trading behaviors to all the members.
• In the aspect of identification and cooperative investigation of accounts with actual control relationship. The Exchange has identified 169 groups of 378 clients that exist the actual control relationship and urged 23 groups of 57 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 10 cases suspected of violation trading rules, of which 5 cases were suspected of accommodation trade,3 cases were violating the position management rules of the Exchange,1 case was price fluctuation caused by market price order,1 case was wrong order. The Exchange has filed and investigated 1 case suspected of violating trading rules.

The Exchange reminds market participants to be in compliance with its rules in the trading activities and report accounts with actual control relationship.

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