Futures in China
Irregularity Handling Rules of Shanghai Futures Exchange (Effective as of 25 Dec 2014-06-23
Updated: December 19, 2008
Chapter I General Principles
Article 1 The Rules are formulated pursuant to the applicable provisions of the Regulations of Shanghai Futures Exchange and the Trading Rules of Shanghai Futures Exchange for the purposes of strengthening the futures market management, normalizing the futures trading and protecting the lawful rights and interests of the futures market participants.
Article 2 An irregularity herein shall refer to the violation by a member, client, certified delivery warehouse, designated futures margin depository bank and futures market-related participant of the Regulations, Trading Rules or any other applicable provisions of Shanghai Futures Exchange (the “Exchange”).
Article 3 The Exchange shall investigate, determine and punish an irregularity under the principles of fairness and justice and on the basis of the facts.
An irregularity which constitutes a crime may be handed over to the judicial organs to have the criminal liability prosecuted.
Article 4 In case a member, client, certified delivery warehouse, designated futures margin depository bank and futures market-related participant has been published by the China Securities Regulatory Commission (CSRC) in respect of a certain irregularity, the Exchange may excuse or mitigate the punishment in respect thereof when it determines the punishment.
Article 5 The business activities related to the Exchange’s futures trading will be governed by the Rules.
Chapter II Inspection
Article 6 The inspection shall refer to the Exchange’s supervision and check of the business activities of a member, client, certified delivery warehouse, designated futures margin depository bank and futures market-related participant pursuant to all of the Exchange’s regulations and policies.
The inspection shall include the regular check and the registered investigation.
Article 7 The Exchange may exercise the following powers when its perform its regulatory duties:
(1) Consult and copy the information, documents and materials related to the futures trading;
(2) Investigate, and collect evidence from, a member, client, certified delivery warehouse, designated futures margin depository bank and any other entity or individual;
(3) Require a member, client, certified delivery warehouse, designated futures margin depository bank and any other person under investigation to report, represent, explain or clarify the relevant information;
(4) Inquire a member’s futures margin account;
(5) Check a member’s computer systems of trading, settlements, finance or otherwise;
(6) Prevent, correct or handle an irregularities; and
(7) Other powers necessary for the Exchange to perform its regulatory duties.
Article 8 A member, client, certified delivery warehouse, designated futures margin depository bank and futures market-related participant shall consciously accept the Exchange’s supervision.
Article 9 The Exchange shall have a complaint and report telephone number(s). The complainant or reporter shall have a true and definite identity; and if the complainant or reporter is unwilling to disclose his identity, the Exchange shall keep him confidential.
Article 10 The Exchange shall carry out registered investigation if it believes there occurs an irregularity after its examination of the clues and hints which are discovered in the regular check, from the complaining or reporting, handed over by a futures regulatory authority, judicial organ or any other entity, or obtained through any other means.
Article 11 As of a registered futures irregularity case, the Exchange shall specify a person(s) to be responsible for investigation; and the investigation and evidence collection shall be carried out by two or more investigators and their working certificates or the Exchange’s certifications must be produced.
Article 12 The investigator shall challenge himself if he believes that he has interest in the case or other circumstance which may adversely affect the impartial handling of the case.
The person under investigation shall have the right to challenge the relevant investigators if he believes they are related to the case, which may adversely affect the impartial handling of the case.
The Exchange shall order a challenge if it believes an investigator shall be challenged.
The challenge of an investigator shall be determined by the person-in-charge of the inspection department of the Exchange. The challenge of the person-in-charge of the inspection department shall be determined by the general manager of the Exchange.
Article 13 The evidences shall include the documentary evidences, real evidences, investigation records, expert conclusions, audio-visual materials, electronic records and any and all materials that may prove the true facts of the case.
The evidences may serve as the basis for conclusion of the case.
Article 14 The investigation record shall be signed by the investigator(s) and the person(s) under investigation after it is checked to be correct without error.
The collection of documentary evidences and real evidences shall be subject to the preparation of the collection records which shall bear the collection time and place and shall be signed by the person(s) under investigation or in case the person(s) under investigation cannot in any way sign his name, the witness(es). The collection of audio-visual materials and electronic records shall be subject to the noting of the time, place, methods, equipment used and preservation conditions for collection or preparation which shall be signed by the person(s) under investigation or the witness(es).
The expert conclusions shall be made by a competent entity identified by the CSRC or the Exchange and shall be signed by the expert(s) and sealed by the entity which the expert(s) is affiliated with.
Article 15 An investigator shall strictly comply with the confidentiality policy and shall not misuse his powers during the regular check and the registered investigation, or will otherwise be punished by the Exchange on the basis of the different circumstances.
Article 16 In case a member, client, certified delivery warehouse, designated futures or margin depository bank involves suspected material irregularity and is under registered investigation by the Exchange, the Exchange may take the following restrictive measures against it prior to the confirmation of the irregularity for the purposes of preventing the further expansion of the irregularity results and ensuring the handling of the irregularity case:
(1) Explanation with a limited period;
(2) Suspension of entering new client codes;
(3) Limited withdrawal;
(4) Limited funding;
(5) Limited delivery business of the certified delivery warehouse;
(6) Lowering the position limit or the standard warehouse warrant limit;
(7) Increasing the margin ratio;
(8) Limited opening for trading;
(9) Liquidation with a limited period; and
(10) Forced liquidation.
The measures under the items (6) to (10) shall be decided by the Board of Directors of the Exchange.
Chapter III Irregularity Handling
Article 17 Varied irregularities shall be subject to concurrent punishment on the basis of separately confirmed natures. Repeated irregularities shall be subject to heavier or cumulative punishment.
Article 18 A futures company member to which any of the following violations against the brokerage business qualification management provisions occurs will be ordered to make correction and its irregularity earnings will be confiscated. Such punishments shall be imposed on the basis of the seriousness of the circumstance as warning, public criticism, forced liquidation, suspension of opening for trading for one to six months or disqualification as a member; in case of no irregularity earnings or in case the irregularity earnings are no more than RMB50,000, a fine of RMB50,000 to 250,000 will be additionally applicable at the Exchange’s discretion; and in case the irregularity earnings are RMB50,000 or more, the fine one to five times the irregularity earnings will be additionally applicable at the Exchange’s discretion:
 
(1) Fraudulent acquisition of the qualification for engaging in the futures brokerage business;
(2) Establishment without permission of a branch or affiliate to engage in the futures brokerage business;
(3) Recruitment of an employee to engage in the futures brokerage business who fails to obtain the futures practitioner qualification or pass the Exchange’s training; or
(4) Any other irregularity against the CSRC or the Exchange’s management provisions for the Exchange’s member brokerage business qualifications.
 
Article 19 A futures company member to which any of the following violations against the brokerage business qualification management provisions occurs will be ordered to make correction and shall have its irregularity earnings confiscated. In case of a lesser serious circumstance, the warning or public criticism shall be imposed in addition to a fine of RMB10,000 to 100,000 at its discretion; or in case of a serious circumstance, such punishments will be imposed as forced liquidation, suspension of portions of futures business, suspension of opening for trading for one to six months, disqualification as a member or declaration as “prohibited market access”, as the case maybe, in addition to a fine of RMB100,000 to 500,000 at the Exchange’s discretion in case of no irregularity earnings or in case the irregularity earnings are no more than RMB100,000, or a fine one to five times the irregularity earnings at the Exchange’s discretion in case the irregularity earnings are RMB100,000 or more:
 
(1) Carrying out futures trading for a client which fails to go through the (required) account-opening formalities;
(2) Violation of the trading code management policy;
(3) Failing to perform the required examination obligations and going through account-opening formalities for a client which fails to satisfy the account-opening conditions;
(4) Failing to accurately explain to the client the risks in futures trading or failing to issue a risk statement for the client’s signature;
(5) Guaranteeing profit to the client or privately agreeing with the client upon sharing of the profit, risk or loss;
(6) Carrying out trading for itself or any other third party by using the client’s account;
(7) Failing to trade as commissioned by the client, or intentionally preventing, delaying or changing the client’s order-placement instruction, or inducing or compelling the client to trade upon the member’s will;
(8) Carrying out OTC trading or private hedging;
(9) Failing to separately deposit its own funds and the client’s funds in different accounts;
(10) Delaying the client’s withdrawal without due cause;
(11) Permitting the client’s opening for trading without sufficient margin;
(12) Appropriating, or permitting without permission a third party to appropriate, the client’s funds, or misappropriating funds in different accounts;
(13) Intentionally fabricating or spreading false or misleading information;
(14) Disclosing the matters commissioned by the client or other trading secrets;
(15) A floor trader’s trading by acceptance of any individual or entity other than the Exchange;
(16) Failing to provide to the client the required execution reports or fund settlement statements; or
(17) Any other irregularity against the CSRC or the Exchange’s management provisions for brokerage business.
The Exchange may impose against the liable person the punishment of suspending engagement in the Exchange’s futures business for a period no more than one month, or in case of a serious circumstance, suspending engagement in the Exchange’s futures business for a period of one to six months or disqualifying his engaging in the Exchange’s futures business.
 
Article 20 A member to which any of the following circumstances occurs shall be ordered to make correction or imposed warning, public criticism, suspension of portions of futures business or suspension of opening for trading for one to six months, or in case of a serious circumstance, disqualification as a member:
(1) Failing to perform the reporting obligations after the change of a member’s statutory representative, business scope, domicile, branch or affiliate, or otherwise;
(2) Failing to submit to the Exchange the financial statements and other relevant materials within the required period;
(3) Failing to perform its declaration obligation under the large trader reporting system, or making false reporting or concealment without reporting;
(4) Failing to assist the Exchange to take restrictive measures against any of its clients;
(5) Failing to timely pay the annual dues or other fees required by the Exchange;
(6) Failing to properly keep the materials related to trading, settlement, finance, accounting or otherwise;
(7) Forging, altering, or buying/selling varied certificates or approvals;
(8) A non futures company member engaging in brokerage business, or a futures company member engaging in self-operated business; or
(9) Committing illegal activities under the name of futures trading.
Article 21 A member to which any of the following circumstances occurs shall be disqualified as a member:
(1) Having its futures brokerage business license suspended by the CSRC or being declared by the CSRC as “prohibited market access”;
(2) Privately transferring its member seat, or commissioning a third party to manage its seat or outsourcing its seat to a third party;
(3) Having materially insufficient funds, personnel or equipment, or disordered management, and the rectification in respect thereof proves to fail;
(4) Refusing compliance with the resolution of the Members’ Meeting or the Council;
(5) Failing to carry out trading without due cause for three consecutive months; or
(6) Any other violation of the national laws, regulations or rules or material violation of the Regulations of the Exchange or other applicable provisions.
Article 22 A member which fails to carry out forced liquidation without due cause within a required period shall be imposed the warning, public criticism, suspension of portions of futures business, suspension of opening for trading for a period no more than one month in addition to a fine of no more than RMB50,000 at its discretion.
Article 23 A member to which any of the following circumstances occurs against the Exchange’s settlement management provisions shall be ordered to make correction and may be imposed the warning; and in case of a serious circumstance, shall be imposed the public criticism, suspension of portions of futures business or suspension of opening for trading for a period no more than one month in addition to a fine of RMB10,000 to 200,000 at its discretion:
(1) Failing to timely and fully pay the margin;
(2) Inaccurately or incompletely recording in the settlement report, monthly trading statement or other settlement documents;
(3) Failing to manage the clients’ margins in separate accounts;
(4) Failing to carrying out daily settlement for a client;
(5) Forging or fabricating the trading records, accounting statements or account books;
(6) Issuing blank checks, falsely issuing VAT invoices or any other counterfeit documents; or
(7) Any other irregularity against the Exchange’s settlement management provisions.
Article 24 A member (client) which assists in providing or issuing false documents during the hedging declaration and violates the Exchange’s other provisions shall be deprived by the Exchange of the hedging application qualification, and may be imposed at its discretion a fine of five percent of no more than the total amount of the false hedging position it holds, and on the basis of the seriousness of the circumstance, shall be imposed the punishment of warning, public criticism, suspension of portions of futures business, forced liquidation, confiscation of the irregularity earnings or declaration as “prohibited market access”.
Article 25 A member or client which violates the Exchange’s position management provisions shall be imposed the punishment of forced liquidation, warning, public criticism or suspension of portions of futures business, as the case may be.
Article 26 A member to which any of following circumstances occurs against the Exchange’s management provisions for information and computer communications or other equipment shall be ordered to make correction and indemnify the economic loss. In case of a lesser serious circumstance, the punishments of warning, suspension of portions of futures business or suspension of opening for trading for a period no more than one month, as the case may be, in addition to a fine of RMB10,000 to 50,000 at its discretion; or in case of a serious circumstance, the punishment of suspension of opening for trading for a period of one to six months or disqualification as a member, as the case may be, in addition to a fine of RMB50,000 to 200,000 at its discretion:
(1) Releasing the Exchange’ information without the Exchange’s permission;
(2) Using a computer or communication device at, on, in or of any other member’s seat;
(3) Illegally stealing any other member's execution, settlement funds or other trade secrets through its trading seat, or damaging the trading system,; or
(4) Illegally stealing any other member or client’s warehouse warrant or other trade secrets through the standard warehouse warrant management system, or damaging the standard warehouse warrant management system;
The Exchange may impose against the liable person the punishment of suspending engagement in the Exchange’s futures business for a period no more than one month, or in case of a serious circumstance, suspending engagement in the Exchange’s futures business for a period of one to six months or disqualifying his engaging in the Exchange’s futures business.
A client which commits the irregularity under Item (iv) above shall be ordered to make correction and indemnify the economic loss; and in case of a serious circumstance, the warning will be imposed by the Exchange in addition to suspension of opening for trading for a period for one month or more at its discretion until the imposition of the punishment of declaration as “prohibited market access”.
Article 27 A member which violates the Exchange’s provisions during its engaging in the standard warehouse warrant trading shall be imposed by the Exchange the warning, public criticism, fine of RMB10,000 to 100,000 or suspension of its engagement in standard warehouse warrant trading, as the case may be, or in case of a serious circumstance, disqualification as a member.
Article 28 A futures market participant to which any of the following circumstances occurs against the trading management provisions shall be ordered to make correction and will have its irregularity earnings confiscated. In case of a lesser serious circumstance, such punishments shall be imposed as warning, forced liquidation, suspension of opening for trading for a period no more than one month, as the case may be, in addition to a fine of RMB50,000 to 200,000 at the Exchange’s discretion in case of no irregularity earnings or in case the irregularity earnings are no more than RMB50,000, or a fine one to three times the irregularity earnings in case the irregularity earnings are RMB50,000 or more; or in case of a serious circumstance, such punishments shall be imposed as public criticism, suspension of portions of futures business, forced liquidation, suspension of opening for trading for one to six months, disqualification as a member, or declaration as “prohibited market access”, as the case may be, in addition to a fine of RMB100,000 to 1,000,000 at the Exchange’s discretion in case of no irregularity earnings or in case the irregularity earnings are no more than RMB100,000, or a fine three to five times the irregularity earnings in case the irregularity earnings are RMB100,000 or more:
(1) Manipulating market prices through conspiratorially centralized funds, unified instructions and concerted sales or purchase;
(2) Control or attempting to control the market prices so as to adversely affect the market orders, through using position transfer, position sizing, crossed market or otherwise to evade the Exchange's position limit, hold a position over the Exchange's limit;
(3) Adversely affect the market prices, transfer funds or obtain improper benefit through using crossed market or otherwise;
(4) Attempting to affect futures prices, disorder the market or transfer funds, through maliciously or consecutively inputting trading orders without the purpose of execution or with the knowledge of the input instructions cannot result in execution;
(5) Fabricating market illusion so as to affect or attempt to affect the market prices or position quantities, through carrying out consecutive sales or purchase, self-sales or purchase or deliberate collusion in order to fabricate false market information, and carrying out trading or sales to, or purchase from, each other in previously agreed manner;
(6) Carrying out futures trading through using inside information or state secrets, or disclose inside information which affects futures trading;
(7) Attempting to affect or seriously affecting the futures market quotations or delivery, through monopolizing or storing the subject matter or improperly centralizing position quantities;
(8) Directly or indirectly manipulating or disordering the trading order, hindering or harming the fair trading, or damaging the interests of the state or the social public, with the purpose of manipulating the market;
(9) Affecting the market order through a non-bona fide exchange for physicals;
(10) Affecting the normal operation of the Exchange’s standard warehouse warrant management system due to its failure to use the system subject to the instructions;
(11) Failing to comply with the applicable requirements of the Exchange’s risk warning policy; or
(12) Any other irregularity against the CSRC or the Exchange’s applicable provisions for the management of trading.
Article 29 A floor trader to whom any of the following circumstances occurs shall be imposed the punishment of warning, or in case of a serious circumstance, the suspension of floor trading for a period no more than one month, or disqualification as a floor trader, as the case may be, in addition to a fine of RMB1000 to 10,000 at the Exchange’s discretion:
(1) Violating the Exchange’s applicable provisions for the management of the trading floor;
(2) Damaging the trading system due to his failure to operate subject to the required procedures;
(3) Dismantling or moving any kind of equipment at the trading floor without permission, or privately installing a telephone or any other equipment;
(4) Obtaining the floor trader qualification through false, fraudulent or improper means; or
(5) Forging, altering or borrowing a floor trader certificate.
Any damage or loss arising out of or in connection with the Item (2) or (3) above shall be indemnified by the member who appoints the floor trader.
Article 30 A settlement and delivery clerk to whom either of the following circumstances occurs shall be imposed the punishment of warning, or in case of a serious circumstance, suspension of the qualification as a settlement and delivery clerk for a period no more than one month or disqualification as a settlement and delivery clerk, as the case may be, in addition to a fine of RMB1,000 to 10,000 at the Exchange’s discretion:
(1) Obtaining the settlement and delivery clerk qualification through false, fraudulent or improper means; or
(2) Forging, altering or borrowing a settlement and delivery clerk certificate.
Article 31 A certified delivery warehouse to which any of the following circumstances occurs shall be ordered by the Exchanged to make correction and have its irregularity earning confiscated. In case of a lesser serious circumstance, the warning or public criticism shall be imposed in addition to a fine of RMB10,000 to 100,000 at the Exchange's discretion; or in case of a serious circumstance, such punishments will be imposed as reduction of the confirmed capacity, suspension of delivery business, disqualification as a certified warehouse or declaration as "prohibited market access", as the case may be, in addition to a fine of RMB100,000 to 500,000 at the Exchange’s discretion in case of no irregularity earnings or in case the irregularity earnings are no more than RMB100,000, or a fine one to five times the irregularity earnings at the Exchange’s discretion in case the irregularity earnings are RMB100,000 or more:
(1) Participating in futures trading against regulations;
(2) Issuing a false warehouse warrant;
(3) Stealing and selling the delivery commodities;
(4) Disclosing any warehousing information which is related to futures and should be kept confidential, or spreading false information to mislead the market;
(5) Affecting or attempting to affect the futures market prices together with a member or client;
(6) Mixing the brand, trademark, specification, quality or otherwise in the commodities listed in the standard warehouse warrant;
(7) Inconsistency between the delivery commodities and the documents and certificates;
(8) Any delivery commodities being of no, or lacking, a certification;
(9) The number of bundles or pieces, or the packaging requirements failing to satisfy the Exchange's requirements;
(10) Issuing a warehouse warrant without completion of the required inspections;
(11) Erred receipt or issuance;
(12) Causing deterioration or loss in the stored commodities due to improper storage;
(13) Causing damage in the package or commodities during movement, loading or unloading, stacking or otherwise;
(14) Overcharging during delivery of commodities;
(15) Causing the buyer or seller in default through deliberately making difficulties;
(16) Limiting or deliberately delaying the delivery commodities entering into or departing from the warehouse against the futures delivery business rules;
(17) Refusing or obstructing the Exchange’s legal supervision or inspection; or
(18) Any other irregularity against the CSRC or the Exchange’s provisions.
Article 32 A member which intentionally defaults in physical delivery, affects or attempts to affect the normally carrying out of the physical delivery and obtains illegal interests shall be imposed by the Exchange the punishment of warning, public criticism or suspension of opening for trading for a period of one to six months, as the case may be, with the default earning, if any, confiscated, in addition to a fine of ten to thirty percent of the contract value of the default portions at the Exchange's discretion.
Article 33 A designated futures margin depository bank which fails to perform its applicable obligations under the Detailed Settlement Rules of Shanghai Futures Exchange shall be imposed by the Exchange the punishment of being ordered to make correction, warning, public criticism, suspension of portions of futures business, or even disqualification as a designated futures margin depository bank, as the case may be.
Article 34 A member or client which disturbs the trading management order through varied means shall be imposed the punishment of warning, public criticism, suspension of opening for trading for a period no less than one month, with the directly liable person being punished by suspending engagement in the Exchange’s futures business for a period no more than month. In case of a serious circumstance, such punishments shall be imposed as public criticism, suspension of portions of futures business, suspension of opening for trading for a period of one to six month, disqualification as a member, or declaration as “prohibited market access”, as the case may be, with the directly liable person being punished by suspending engagement in the Exchange’s futures business for a period of one to six month or declaration as “prohibited market access”, as the case may be.
Article 35 Those being declared by the Exchange as “prohibited market access” shall liquidate its positions, clear trading business and settle debts and credits within twenty trading days as of the date when the declaration enters into force.
Those being declared by the CSRC or any other futures exchange as “prohibited market access” shall not engage in the Exchange’s futures business within the period of prohibited market access.
Article 36 A member or client which refuses or obstructs the Exchange’s supervision or inspection of its trading or brokerage shall be ordered to make correction, and imposed the punishment of public criticism, suspension of portions of futures business or suspension of opening for trading for a period no less than one month, as the case may be, in addition to a fine of RMB10,000 to 200,000 at the Exchange’s discretion.
Article 37 An employee of the Exchange who violates the applicable provisions shall be punished subject to the national laws and regulations, the Exchange’s human resources management policies and the applicable anti-corruption rules.
Chapter IV Award and Enforcement
Article 38 The Exchange’s punishments of disqualification as a member and declaration as “prohibited market access” shall be decided by the Board of Directors of the Exchange.
Article 39 The Exchange shall make an award subject to the Regulations, Trading Rules and the Rules if an irregularity is examined by the Exchange with clear facts and irrefutable evidences.
Article 40 The Exchange’s award shall be subject to the preparation of a handling decision.
A handling decision shall contain the following:
(1) The name and domicile of the person involved;
(2) The facts and evidences of the irregularity;
(3) The type and basis of the punishment;
(4) The method and term of fulfillment of the punishment;
(5) The method and term of application for reconsideration in case of disagreement of the punishment decision; and
(6) The date when the handling decision is made.
Article 41 The handling decision shall be delivered by the Exchange to the person involved therein. If the person involved therein is a member, it shall be deemed to be delivered if sent at the trading seat; and if the person involved therein is not a member, it may be delivered yb mail and it shall be deemed to be delivered three days after mailing within the Municipality or seven days after mailing outside the Municipality. The handling decision shall be respectively sent to the appropriate departments which assist in enforcement thereof.
It shall be reported to the CSRC if the irregularity is needs to be reported to the CSRC pursuant to the CSRC’s provisions.
Article 42 The Exchange’s handling decision shall enter into force as of the date of being delivered.
The person involved therein may file a written application to the Exchange for reconsideration within ten days as of the effective date of the decision if it disagrees with the handling decision. The enforcement thereof shall not be discontinued during the enforcement period.
Article 43 The reconsideration decision shall be made by the Exchange within one month as of the date of its receipt of the reconsideration application. The reconsideration decision shall be a final decision.
Article 44 A handling decision shall be enforced by the Exchange if the member which bears the performance obligation thereunder refuses performing its obligation thereunder.
Article 45 If there exists a fine or confiscation in the irregularity handling decision, the person involved therein shall fully pay to the account designated by the Exchange the amount of the fine or confiscation within five days as of the effective date of the handling decision. In case of no payment thereof within the required period, the deduction thereof shall be made by the Exchange out of the member’s special fund account. The fine or confiscation against an employee of the member shall be paid by the member on his behalf.
The member shall cooperate the Exchange’s enforcement of a punishment against the client through deducting the client’s funds deposited at the member.
Article 46 If there exists a fine or confiscation in the irregularity handling decision, the certified delivery warehouse punished shall pay to the account designated by the Exchange the amount of the fine or confiscation within five days as of the effective date of the handling decision. The fine or confiscation against an employee of the certified delivery warehouse shall be paid by the certified delivery warehouse on his behalf. In case of no payment thereof within the required period, the deduction thereof shall be made by the Exchange out of the certified delivery warehouse’s risk deposit.
Chapter V Dispute Mediation
Article 47 A dispute between or among a member, client or certified delivery warehouse may be settled through their negotiations or may be submitted to the Exchange for mediation.
Article 48 The Exchange’s mediation organ shall be the Mediation Committee under the Board of Directors of the Exchange; and its standing office is located at the Supervision Division of the Exchange.
Article 49 The mediation shall be carried out on the basis of clear facts and definite responsibilities and pursuant to the national laws and regulations related to futures trading and the Exchange’s regulations and policies.
Article 50 An application to the Mediation Committee for mediation shall be filed by the person involved within thirty days as of the date it becomes aware of, or should have been aware of, the infringement of its lawful interests or rights.
Article 51 An application for mediation filed by the person involved shall satisfy the following conditions:
(1) There existing a written application for mediation;
(2) There being specific facts, reasons and claims; and
(3) Being under the acceptance scope of the Mediation Committee.
Article 52 The person involved which files an application to the Mediation Committee for mediation shall submit a written application and the relevant materials.
A written mediation application shall bear the following:
(1) The name, gender, age, profession, employer and domicile, or the unit name, domicile and the name and title of the statutory or person-in-charge, of the person involved;
(2) The facts, reasons and claims for mediation; and
(3) The relevant evidences.
Article 53 The person involved shall be responsible for burden of proof subject to the applicable provisions. The Mediation Committee may investigate and collect evidences if it deems necessary.
Article 54 When mediating a dispute, the Mediation Committee shall mediate on the basis of ascertaining facts, discerning the right and wrong and being out of free will, and result in understanding each other between or among the persons involved and reaching an agreement.
Article 55 The agreement reached after mediation shall be recorded; and a mediation letter shall be made and shall enter into force after being signed by the persons involved and the mediator(s) and sealed by the Mediation Committee.
Article 56 A mediation letter shall clearly bear the following:
(1) The names, domiciles, and the names and titles of the statutory representatives or persons-in-charge, of the persons involved;
(2) The matters in dispute and claims; and
(3) The agreed result.
Article 57 The Mediation Committee shall conclude the dispute within thirty days after mediation upon acceptance of the dispute, or in case of no conclusion thereof upon expiry of the thirty days, shall explain reasons to the persons involved. The Mediation Committee shall continue mediation in case the persons involved require so, or shall terminate mediation in case any or either of the persons involved requires so.
Article 58 In case the mediation fails, the persons involved may legally apply for arbitration or institute a lawsuit at the people’s court.
Chapter VI Supplementary Provisions
Article 59 The Rules shall be interpreted by Shanghai Futures Exchange.
Article 60 The terms “no less than” and “no more than” herein shall include the number immediately after them.
Article 61 The Rules shall enter into force as of 25 December 2008.