Administrative Regulations on Futures Trading (Revised in 2013)
Administrative Regulations on Futures Trading (Revised in 2013)
Administrative Regulations on Futures Trading (Revised in 2013)
Order of the State Council No. 638
July 18, 2013
(Promulgated by the Order of the State Council No. 489 on March 6, 2007 and revised in accordance with the Decision of the State Council on Revising the Administrative Regulations on Futures Trading on October 24, 2012; revised further according to the Decision of the State Council on Abolishing and Revising Some Administrative Laws and Regulations on July 18, 2013)
Chapter I General Provisions
Article 1 These Regulations are formulated for the purposes of regulating futures trading, strengthening the supervision over and administration of futures trading, maintaining the order of futures market, preventing risks, protecting the lawful rights and interests of all futures trading parties involved and public interests and promoting positive and steady development of the futures market.
Article 2 Any entity or individual that engages in futures trading or related activities shall abide by these Regulations.
For the purposes of the Regulations, the term of futures trading shall refer to the trading that is conducted by means of public centralized trading or in any other manner as may be approved by the futures regulatory authority under the State Council, and takes futures contract or option contract as the subject matter of trading.
For the purposes of the Regulations, the term of futures contract shall refer to a standardized contract that is formulated in a uniform manner by the futures exchange for delivering a specific amount of subject matter on a stipulated future date at a specified location. A futures contract includes commodity futures contract, financial futures contract and other futures contracts.
For the purposes of the Regulations, the term of option contract shall refer to a standardized contract that is formulated in a uniform manner by the futures exchange and specifies that the buyer is entitled to buy or sell the specified subject matter (including the futures contract) at a specific price on a stipulated future date.
Article 3 To conduct futures trading, one shall follow the principles of openness, fairness, justice, and good faith. Illegalities, such as fraud, insider trading, and manipulation of futures trading prices, shall be forbidden.
Article 4 The futures trading shall be conducted in the futures exchange specified by Paragraph 1 of Article 6 hereof or any other futures exchange as may be approved by the State Council or the futures regulatory authority under the State Council.
No futures trading may be conducted at any location outside the futures exchange specified in the preceding paragraph.
Article 5 The futures regulatory authority under the State Council shall carry out centralized and unified supervision over and administration of the futures market.
The dispatched offices of the futures regulatory authority under the State Council shall perform their duties of supervision and administration according to relevant provisions hereof and the authorization of the futures regulatory authority under the State Council.
Chapter II Futures Exchanges
Article 6 The establishment of a futures exchange shall be subject to the examination and approval of the futures regulatory authority under the State Council.
Without the approval of the State Council or the futures regulatory authority under the State Council, no entity or individual may establish any futures exchange or conduct any futures trading or any other related activities.
Article 7 A futures exchange shall not run for profit-making purposes and shall carry out self-discipline administration according to its own bylaws.
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