Recently, the Shanghai Futures Exchange (the "SHFE" or "Exchange") has released the Market-Making Management Rules of the Shanghai Futures Exchange (Revised) (the "Rules") and the Guide of the Shanghai Futures Exchange for Market Maker Business (the "Guide"). The Rules take effect on April 18, 2024.
The Rules amend the original Article 19 to read, subject to the provisions of the Agreement and the performance of market-making business, the Exchange may provide Market Makers with reductions on transaction fees, incentives, etc. The Exchange sets fee reduction and incentive standards based on the operation of market making products and other conditions, and stipulates them in the Agreement with the Market Maker. The Guide states that the net assets of market makers shall not be less than CNY50 million. Market makers shall use their own funds for market-making and shall not conduct market-making business with funds raised in violation of laws and regulations such as fund issuance, wealth management, trusts, and asset management products.