Administrative Measures for Futures Exchanges (Revised in 2017)
Administrative Measures for Futures Exchanges (Revised in 2017)
Administrative Measures for Futures Exchanges (Revised in 2017)
Order of the China Securities Regulatory Commission No.137
December 7, 2017
(Adopted by Order of the China Securities Regulatory Commission No.42 on April 9, 2007, and revised according to the Decision of the China Securities Regulatory Commission on Revising Seven Rules Including the Administrative Measures on the Registration and Settlement of Securities on December 7, 2017)
Chapter I General Provisions
Article 1 With a view to strengthening the supervision and administration of futures exchanges, clarifying the functions and responsibilities of futures exchanges, maintaining the order of the futures market and promoting the vigorous and stable development of the futures market, these Measures have been formulated in accordance with the Administrative Regulations on Futures Trading.
Article 2 These Measures shall apply to futures exchanges established within the territory of the People's Republic of China.
Article 3 The term "futures exchange" as used in these Measures refers to legal persons established in accordance with the Administrative Regulations on Futures Trading and these Measures who, on a non-profit making basis, perform the functions and responsibilities specified in the Administrative Regulations on Futures Trading and these Measures, and are administered on a self-disciplinary basis in accordance with their articles of association and trading rules.
Article 4 Subject to the approval of the China Securities Regulatory Commission (hereinafter referred to as the CSRC), a futures exchange may adopt the organizational form of a membership system or a company system.
The registered capital of any futures exchange operated on the basis of a membership system shall be divided into equal shares to be subscribed for by its members.
Any futures exchange operated on the basis of a company system shall adopt the organizational form of a joint stock limited company.
Article 5 The CSRC shall supervise and administer futures exchanges in a centralized manner.
Chapter II Establishment, Modification and Winding Up
Article 6 The establishment of a futures exchange shall be subject to the examination and approval of the CSRC. Without approval of the State Council or the CSRC, no entity or individual may establish a futures exchange or organize futures trading or any other related activity in any form.
Article 7 The name of any futures exchange established following the approval of the CSRC shall include the words "commodity exchange" or "futures exchange". No other entity or individual may use the words "futures exchange" or similar words in its name.
Article 8 In addition to those responsibilities prescribed in the Administrative Regulations on Futures Trading, a futures exchange shall have the following responsibilities:
1. Formulating and implementing futures exchange trading rules and detailed implementation rules;
2. Releasing market information;
3. Supervising futures business conducted by members and their clients, designated delivery warehouses, custodian banks for futures margins and other participants in the futures market; and
4. Investigating and punishing rule breaches.
Article 9 To apply to establish a futures exchange, the applicant shall submit the following documents and materials to the CSRC:
1. An application;
2. Its articles of association and draft trading rules;
3. The business plan of the futures exchange;
4. The names of prospective members or shareholders;
5. The names and resumes of the proposed members of its council, or of its board of directors and board of supervisors;
6. The names and resumes of senior management personnel to be employed;
7. Documentation on and descriptions of its premises, equipment and funds; and
8. Any other documents or materials required by the CSRC.
Article 10 The articles of association of a futures exchange shall specify:
1. The purpose of its establishment and its functions;
2. Its name, address and place of business;
3. Its registered capital and the composition thereof;
4. Its business operating period;
5. Its organizational structure and committees, etc., along with the functions and responsibilities, tenures, and procedural rules of its committees, etc.;
6. The selection, appointment and removal of management personnel and their responsibilities;
7. Its basic business system;
8. Its risk reserve management system;
9. Its financial accounting system and internal control system;
10. The conditions and procedures for modification and winding up, as well as liquidation measures;
11. Procedures for modifying the articles of association; and
12. Any other matter required to be prescribed in the articles of association.
Article 11 In addition to the items listed in Article 10 of these Measures, the articles of association of any futures exchange operated on the basis of a membership system shall specify:
1. The membership criteria and measures for the administration thereof;
2. The rights and interests of members; and
3. Disciplinary sanctions for members.
Article 12 The trading rules of any futures exchange shall specify:
1. Its rules on futures trading, settlement and delivery;
2. Its risk management system and procedures for the settlement of abnormal trading situations;
3. Its rules on the management and use of margins;
4. Its methods for the release of futures trading information;
5. Violations, breaches of contract and measures for dealing with them;
6. Methods for resolving trading disputes; and
7. Any other matter required to be clearly specified in trading rules.
In addition to the matters listed in the preceding paragraph, the trading rules of any futures exchange operated on the basis of a company system shall cover the matters prescribed in Article 11 of these Measures.
Article 13 Any change of name or change in registered capital of a futures exchange shall be reported to the CSRC in advance.
Article 14 Any merger, division or change of organizational form involving a futures exchange shall be reported to the CSRC in advance.
A merger of two or more futures exchanges may be effected either by way of takeover or by way of consolidation, and the credits and debts of all parties prior to the merger shall be assumed by the surviving futures exchange or by the newly established exchange.
The credits and debts of any futures exchange to be broken up shall be assumed by the surviving futures exchange(s).
Article 15 Any futures exchange that seeks to provide online trading services shall notify the CSRC within 10 days of making such decision.
Article 16 No futures exchange may establish any branch or any other futures trading venue without CSRC approval.
Article 17 A futures exchange shall be dissolved in any of the following circumstances:
1. When the business operating period specified in its articles of association expires;
2. When a general meeting of its members or a general meeting of shareholders resolves to dissolve the exchange; or
3. Where the CSRC decides to close it down.
The dissolution of a futures exchange due to either of the circumstances described in items 1 and 2 of the preceding paragraph shall be reported to the CSRC in advance.
Article 18 The CSRC shall make an announcement on the winding up of any futures exchange due to a merger, breakup or dissolution. Where a futures exchange is to be wound up, a liquidation committee shall be convened to be responsible for the liquidation.
The liquidation plan formulated by any liquidation committee shall be reported to the CSRC in advance.
Chapter III Organizational Structure
Section 1 Futures Exchanges Operated on the Basis of a Membership System
Article 19 Any futures exchange operated on the basis of a membership system shall establish a general meeting of members, which shall be the decision-making body for the futures exchange and be composed of all members.
Article 20 The general meeting of members shall exercise the following powers:
1. Examining and approving the articles of association and the trading rules of the futures exchange, as well as draft modifications thereof;
2. Electing and replacing member directors;
3. Reviewing and approving the work reports of the council and the general manager;
4. Reviewing and approving the financial budget and the final report and accounts of the futures exchange;
5. Reviewing the futures exchange's use of its risk reserves;
6. Deciding to increase or reduce the registered capital of the futures exchange;
7. Deciding on matters relating to any proposed merger or breakup involving the futures exchange, or to the dissolution or liquidation of the futures exchange;
8. Deciding on other significant matters submitted by the council of the futures exchange;
9. Any other power prescribed in the articles of association of the futures exchange.
Article 21 The general meeting of members shall be convened by the council once a year. Under any of the following circumstances, an interim general meeting of members shall be convened:
1. Where the number of member directors falls below two-thirds of the number prescribed in the articles of association of the futures exchange;
2. Where one-third or more of the members jointly propose an interim meeting; or
3. Where the council deems it necessary.
Article 22 The general meeting of members shall be presided over by the chairman of the council. Members shall be notified of the items to be reviewed at the general meeting 10 days before the meeting is convened.
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Order of the China Securities Regulatory Commission No.137
December 7, 2017
(Adopted by Order of the China Securities Regulatory Commission No.42 on April 9, 2007, and revised according to the Decision of the China Securities Regulatory Commission on Revising Seven Rules Including the Administrative Measures on the Registration and Settlement of Securities on December 7, 2017)
Chapter I General Provisions
Article 1 With a view to strengthening the supervision and administration of futures exchanges, clarifying the functions and responsibilities of futures exchanges, maintaining the order of the futures market and promoting the vigorous and stable development of the futures market, these Measures have been formulated in accordance with the Administrative Regulations on Futures Trading.
Article 2 These Measures shall apply to futures exchanges established within the territory of the People's Republic of China.
Article 3 The term "futures exchange" as used in these Measures refers to legal persons established in accordance with the Administrative Regulations on Futures Trading and these Measures who, on a non-profit making basis, perform the functions and responsibilities specified in the Administrative Regulations on Futures Trading and these Measures, and are administered on a self-disciplinary basis in accordance with their articles of association and trading rules.
Article 4 Subject to the approval of the China Securities Regulatory Commission (hereinafter referred to as the CSRC), a futures exchange may adopt the organizational form of a membership system or a company system.
The registered capital of any futures exchange operated on the basis of a membership system shall be divided into equal shares to be subscribed for by its members.
Any futures exchange operated on the basis of a company system shall adopt the organizational form of a joint stock limited company.
Article 5 The CSRC shall supervise and administer futures exchanges in a centralized manner.
Chapter II Establishment, Modification and Winding Up
Article 6 The establishment of a futures exchange shall be subject to the examination and approval of the CSRC. Without approval of the State Council or the CSRC, no entity or individual may establish a futures exchange or organize futures trading or any other related activity in any form.
Article 7 The name of any futures exchange established following the approval of the CSRC shall include the words "commodity exchange" or "futures exchange". No other entity or individual may use the words "futures exchange" or similar words in its name.
Article 8 In addition to those responsibilities prescribed in the Administrative Regulations on Futures Trading, a futures exchange shall have the following responsibilities:
1. Formulating and implementing futures exchange trading rules and detailed implementation rules;
2. Releasing market information;
3. Supervising futures business conducted by members and their clients, designated delivery warehouses, custodian banks for futures margins and other participants in the futures market; and
4. Investigating and punishing rule breaches.
Article 9 To apply to establish a futures exchange, the applicant shall submit the following documents and materials to the CSRC:
1. An application;
2. Its articles of association and draft trading rules;
3. The business plan of the futures exchange;
4. The names of prospective members or shareholders;
5. The names and resumes of the proposed members of its council, or of its board of directors and board of supervisors;
6. The names and resumes of senior management personnel to be employed;
7. Documentation on and descriptions of its premises, equipment and funds; and
8. Any other documents or materials required by the CSRC.
Article 10 The articles of association of a futures exchange shall specify:
1. The purpose of its establishment and its functions;
2. Its name, address and place of business;
3. Its registered capital and the composition thereof;
4. Its business operating period;
5. Its organizational structure and committees, etc., along with the functions and responsibilities, tenures, and procedural rules of its committees, etc.;
6. The selection, appointment and removal of management personnel and their responsibilities;
7. Its basic business system;
8. Its risk reserve management system;
9. Its financial accounting system and internal control system;
10. The conditions and procedures for modification and winding up, as well as liquidation measures;
11. Procedures for modifying the articles of association; and
12. Any other matter required to be prescribed in the articles of association.
Article 11 In addition to the items listed in Article 10 of these Measures, the articles of association of any futures exchange operated on the basis of a membership system shall specify:
1. The membership criteria and measures for the administration thereof;
2. The rights and interests of members; and
3. Disciplinary sanctions for members.
Article 12 The trading rules of any futures exchange shall specify:
1. Its rules on futures trading, settlement and delivery;
2. Its risk management system and procedures for the settlement of abnormal trading situations;
3. Its rules on the management and use of margins;
4. Its methods for the release of futures trading information;
5. Violations, breaches of contract and measures for dealing with them;
6. Methods for resolving trading disputes; and
7. Any other matter required to be clearly specified in trading rules.
In addition to the matters listed in the preceding paragraph, the trading rules of any futures exchange operated on the basis of a company system shall cover the matters prescribed in Article 11 of these Measures.
Article 13 Any change of name or change in registered capital of a futures exchange shall be reported to the CSRC in advance.
Article 14 Any merger, division or change of organizational form involving a futures exchange shall be reported to the CSRC in advance.
A merger of two or more futures exchanges may be effected either by way of takeover or by way of consolidation, and the credits and debts of all parties prior to the merger shall be assumed by the surviving futures exchange or by the newly established exchange.
The credits and debts of any futures exchange to be broken up shall be assumed by the surviving futures exchange(s).
Article 15 Any futures exchange that seeks to provide online trading services shall notify the CSRC within 10 days of making such decision.
Article 16 No futures exchange may establish any branch or any other futures trading venue without CSRC approval.
Article 17 A futures exchange shall be dissolved in any of the following circumstances:
1. When the business operating period specified in its articles of association expires;
2. When a general meeting of its members or a general meeting of shareholders resolves to dissolve the exchange; or
3. Where the CSRC decides to close it down.
The dissolution of a futures exchange due to either of the circumstances described in items 1 and 2 of the preceding paragraph shall be reported to the CSRC in advance.
Article 18 The CSRC shall make an announcement on the winding up of any futures exchange due to a merger, breakup or dissolution. Where a futures exchange is to be wound up, a liquidation committee shall be convened to be responsible for the liquidation.
The liquidation plan formulated by any liquidation committee shall be reported to the CSRC in advance.
Chapter III Organizational Structure
Section 1 Futures Exchanges Operated on the Basis of a Membership System
Article 19 Any futures exchange operated on the basis of a membership system shall establish a general meeting of members, which shall be the decision-making body for the futures exchange and be composed of all members.
Article 20 The general meeting of members shall exercise the following powers:
1. Examining and approving the articles of association and the trading rules of the futures exchange, as well as draft modifications thereof;
2. Electing and replacing member directors;
3. Reviewing and approving the work reports of the council and the general manager;
4. Reviewing and approving the financial budget and the final report and accounts of the futures exchange;
5. Reviewing the futures exchange's use of its risk reserves;
6. Deciding to increase or reduce the registered capital of the futures exchange;
7. Deciding on matters relating to any proposed merger or breakup involving the futures exchange, or to the dissolution or liquidation of the futures exchange;
8. Deciding on other significant matters submitted by the council of the futures exchange;
9. Any other power prescribed in the articles of association of the futures exchange.
Article 21 The general meeting of members shall be convened by the council once a year. Under any of the following circumstances, an interim general meeting of members shall be convened:
1. Where the number of member directors falls below two-thirds of the number prescribed in the articles of association of the futures exchange;
2. Where one-third or more of the members jointly propose an interim meeting; or
3. Where the council deems it necessary.
Article 22 The general meeting of members shall be presided over by the chairman of the council. Members shall be notified of the items to be reviewed at the general meeting 10 days before the meeting is convened.
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