Notice on Revision of the Trading Rules of Shanghai Stock Exchange
Notice on Revision of the Trading Rules of Shanghai Stock Exchange
Notice on Revision of the Trading Rules of Shanghai Stock Exchange
Shang Zheng Fa [2020] No.17
March 13, 2020
All Market Participants,
With the approval of the China Securities Regulatory Commission, the Shanghai Stock Exchange has revised the Trading Rules of Shanghai Stock Exchange (the “Trading Rules”) to be in line with the applicable provisions and requirements set forth in the new Securities Law with respect to securities trading rules, and hereby issue the revised Trading Rules and announce the related matters as follows:
1. The provisions revised include Section 2.3, Section 5.1.1, Section 7.1, Section 7.4, Section 7.6, Section 7.8 of the Trading Rules, and mainly involve the addition of depositary receipts as a trading instrument, improvement of the provisions relating to the handling of extraordinary events and seriously unusual movements in the market, clarification that real-time quotations are published in real time, among others.
2. The revised Trading Rules are published in full text (see the attachment hereto) and will come into force as of March 13, 2020, and the Notice on Revision of the Trading Rules of the Shanghai Stock Exchange (Shang Zheng Fa [2018] No. 59) and the Notice on Amending Section 3.1.5 of the Shanghai Stock Exchange (Shang Zheng Fa [2020] No. 1) issued by the SSE on respectively on August 6, 2018 and January 7, 2020 shall be repealed at the same time.
3. Considering the business and technical preparations that may be needed by the market and members, the part of the Trading Rules that has been suspended from entry into force before this Notice will continue to be suspected from entry into force and be subject to separate notice by the SSE for the specific time for it to enter into force.
The Notice is hereby given as above.
Attachment 1: Trading Rules of Shanghai Stock Exchange (2020 Second Revision)
Chapter I General Provisions
1.1 The Trading Rules have been formulated in accordance with the Securities Law of the People’s Republic of China and other laws, administrative regulations, rules of State departments and the Constitution of Shanghai Stock Exchange in order to regulate securities trading activities, safeguard the order in the securities market and protect the legitimate rights and interests of investors.
1.2 The Trading Rules are applicable to the trading of securities and derivatives (hereinafter collectively referred to as “securities”) listed on Shanghai Stock Exchange (hereinafter referred to as the “SSE”). Any matter not specified in the Trading Rules shall be governed by other applicable rules of the SSE.
1.3 The trading of securities shall be conducted on an open, fair, and equitable basis.
1.4 The trading of securities shall comply with laws, administrative regulations, rules of State departments and applicable market rules of the SSE and shall abide by the principles of free will, compensation, honesty and good faith.
1.5 Securities shall be traded on a paperless and centralized basis or by such other means as China Securities Regulatory Commission (hereinafter referred to as “CSRC”) may approve.
Chapter II Trading Market
Section 1 Marketplace
2.1.1 The SSE provides the marketplace and facilities for securities trading. The marketplace and facilities comprise the SSE trading system, trading floor, Participant Business Unit, order routing system and relevant communication systems.
2.1.2 The SSE has a trading floor. Members of the SSE (hereinafter referred to as “members”) shall submit orders through their traders stationed at the trading floor.
Unless specially permitted by the SSE, only the following persons are admitted to the trading floor:
(1) registered traders; and
(2) in-floor supervisors.
Section 2 Trading Participants and Trading Rights
2.2.1 To trade securities on the SSE, members and the institutions approved by the SSE shall apply to the SSE for the right to trade to become trading participants of the SSE.
Trading participants shall trade securities through the Participant Business Unit established by the SSE and in compliance with the Trading Rules and applicable provisions of other market rules of the SSE with respect to securities trading.
2.2.2 Participant Business Unit refers to a basic unit that allows a trading participant to trade securities on the SSE, to hold and exercise relevant trading rights and to be subject to the administration of the SSE in respect of relevant trading activities.
2.2.3 Detailed rules on the administration of Participant Business Unit and relevant trading rights will be separately formulated by the SSE and shall come into effect upon the approval of the CSRC.
Section 3 Trading Instruments
2.3 The following securities can be listed and traded on the SSE:
(1) stocks;
(2) funds;
(3) bonds;
(4) bond repos;
(5) warrants;
(6) depositary receipts; and
(6) other instruments as approved by the CSRC.
Section 4 Trading Hours
2.4.1 The SSE is open for trading from Monday to Friday.
The market is closed on public holidays and other days as announced by the SSE.
2.4.2 Except as otherwise specified herein, with respect to auction trading, the opening call auction runs from 9:15 to 9:25 on each trading day, the continuous auction from 9:30 to 11:30 and from 13:00 to 14:57 on each trading day, and the closing auction from 14:57 to 15:00 on each trading day.
With respect to the trading of funds, bonds or bond repos, the opening auction runs from 9:15 to 9:25 on each trading day, and the continuous auction from 9:30 to 11:30 and from 13:00 to 15:00 on each trading day.
Securities whose trading is suspended and resumed during trading hours are excluded from those auctions.
With the approval of the CSRC, the SSE may adjust trading hours based on market development.
2.4.3 Trading hours will not be extended in the event of a temporary market closure for reasons.
Chapter III Securities Trading
Section 1 General Rules
3.1.1 Upon accepting an investor’s instruction, the member shall place an order with the SSE in accordance with the instruction and assume the corresponding trading and settlement obligations.
After the buy or sell order submitted by the member on behalf of the investor is executed, the investor shall deliver the purchase payment or the securities sold to the member, and the member shall deliver the securities purchased or the sale payment to the investor.
3.1.2 Trading participants shall send trading orders to the SSE trading system through relevant order routing system, Participant Business Units and order submission channels and effect trades according to the Trading Rules. Trading results and other records are sent to trading participants by the SSE.
3.1.3 Trading participants shall properly store the records on client instructions and order submissions according to relevant provisions.
3.1.4 Except for turn-around trades, securities purchased by investors shall not be resold before settlement.
A turn-around trade of securities refers to a complete or partial resale of any securities purchased by investors after confirmation of execution but before settlement.
3.1.5 Intraday turn-around trading is applicable to the following instruments:
(1) bonds;
(2) bond exchange-traded funds;
(3) money market exchange-traded funds;
(4) gold exchange-traded funds;
(5) commodity futures exchange-traded funds
(6) cross-border exchange-traded funds;
(7) cross-border listed open-ended funds;
(8) warrants; and
(9) other instruments as approved by the CSRC.
The abovementioned cross-border exchange-traded funds and cross-border listed open-ended funds shall be limited to the open-ended funds that track index constituents or underlying investments to which intraday turn-around trades are applicable.
Turn-around trades of B-shares are available on the next trading day.
3.1.6 The SSE may adopt a market maker system in view of market conditions. The specific rules for the system will be separately formulated by the SSE and shall come into effect upon the approval of the CSRC.
Section 2 Designation
3.2.1 The SSE implements a designated trading system for all the securities traded on the SSE market, except B-shares traded by overseas investors.
3.2.2 Under the designated trading system, an investor who trades securities on the SSE must designate one member in advance as its agent and trade through its designated member.
3.2.3 An investor shall enter into an agreement with its designated member and specify therein the rights, obligations and responsibilities of both parties. After the agreement is executed, the member can complete the designation process through the SSE trading system based on the request of the investor.
3.2.4 The SSE accepts designation instructions during trading hours. Such instructions become valid immediately after being accepted by the SSE trading system.
3.2.5 An investor who intends to change its designation shall submit a cancellation request with its current designated member, who shall enter the request into the SSE trading system accordingly. The designated member may not restrict, obstruct or delay any cancellation request from an investor who meets applicable requirements.
3.2.6 Once a designation is cancelled, the investor may reapply to designate another member.
3.2.7 Other matters in respect of designated trading shall be governed by the relevant provisions of the SSE.
Section 3 Client Instruction
3.3.1 To trade securities, an investor shall open a securities account and a cash account and sign a broker-client agreement with a member. Once the agreement comes into effect, the investor will become a brokerage client (hereinafter referred to as “client”) of the member.
Investors shall open securities accounts according to the relevant provisions of the registration and clearing institution designated by the SSE.
3.3.2 Clients may instruct a member to buy or sell securities on their behalf either in writing or through self-service channels such as telephone, self-service terminal or the Internet. Clients shall follow the relevant operational procedures when placing an order through self-service channels.
3.3.3 A member shall enter into a self-service trading agreement with any of its clients who intends to trade securities through self-service channels.
3.3.4 Unless otherwise specified by the SSE, an order placed by a client shall include the following:
(1) securities account number of the client;
(2) code of the security;
(3) trading direction;
(4) instructed quantity;
(5) instructed price; and
(6) other information as required by the SSE and the designated member.
3.3.5 Clients may trade securities through their members by placing limit orders or market orders.
A limit order is an instruction given by a client to a member to buy a particular security at a specified price or lower, or to sell at a specified price or higher.
A market order is an instruction given by a client to a member to buy or sell a particular security at the current best market price.
3.3.6 Clients may cancel the unfilled portion of their client instructions.
3.3.7 Member shall return to its client the cash or securities corresponding to a cancelled or expired client instruction upon confirmation of the cancellation or expiry.
3.3.8 Margin trading and short selling services as may be provided by members to clients in securities trading shall be governed by relevant provisions.
Section 4 Order Placement
3.4.1 The SSE trading system accepts trading participants’ auction orders between 9:15-9:25, 9:30-11:30 and 13:00-15:00 on each trading day.
......
Shang Zheng Fa [2020] No.17
March 13, 2020
All Market Participants,
With the approval of the China Securities Regulatory Commission, the Shanghai Stock Exchange has revised the Trading Rules of Shanghai Stock Exchange (the “Trading Rules”) to be in line with the applicable provisions and requirements set forth in the new Securities Law with respect to securities trading rules, and hereby issue the revised Trading Rules and announce the related matters as follows:
1. The provisions revised include Section 2.3, Section 5.1.1, Section 7.1, Section 7.4, Section 7.6, Section 7.8 of the Trading Rules, and mainly involve the addition of depositary receipts as a trading instrument, improvement of the provisions relating to the handling of extraordinary events and seriously unusual movements in the market, clarification that real-time quotations are published in real time, among others.
2. The revised Trading Rules are published in full text (see the attachment hereto) and will come into force as of March 13, 2020, and the Notice on Revision of the Trading Rules of the Shanghai Stock Exchange (Shang Zheng Fa [2018] No. 59) and the Notice on Amending Section 3.1.5 of the Shanghai Stock Exchange (Shang Zheng Fa [2020] No. 1) issued by the SSE on respectively on August 6, 2018 and January 7, 2020 shall be repealed at the same time.
3. Considering the business and technical preparations that may be needed by the market and members, the part of the Trading Rules that has been suspended from entry into force before this Notice will continue to be suspected from entry into force and be subject to separate notice by the SSE for the specific time for it to enter into force.
The Notice is hereby given as above.
Attachment 1: Trading Rules of Shanghai Stock Exchange (2020 Second Revision)
Chapter I General Provisions
1.1 The Trading Rules have been formulated in accordance with the Securities Law of the People’s Republic of China and other laws, administrative regulations, rules of State departments and the Constitution of Shanghai Stock Exchange in order to regulate securities trading activities, safeguard the order in the securities market and protect the legitimate rights and interests of investors.
1.2 The Trading Rules are applicable to the trading of securities and derivatives (hereinafter collectively referred to as “securities”) listed on Shanghai Stock Exchange (hereinafter referred to as the “SSE”). Any matter not specified in the Trading Rules shall be governed by other applicable rules of the SSE.
1.3 The trading of securities shall be conducted on an open, fair, and equitable basis.
1.4 The trading of securities shall comply with laws, administrative regulations, rules of State departments and applicable market rules of the SSE and shall abide by the principles of free will, compensation, honesty and good faith.
1.5 Securities shall be traded on a paperless and centralized basis or by such other means as China Securities Regulatory Commission (hereinafter referred to as “CSRC”) may approve.
Chapter II Trading Market
Section 1 Marketplace
2.1.1 The SSE provides the marketplace and facilities for securities trading. The marketplace and facilities comprise the SSE trading system, trading floor, Participant Business Unit, order routing system and relevant communication systems.
2.1.2 The SSE has a trading floor. Members of the SSE (hereinafter referred to as “members”) shall submit orders through their traders stationed at the trading floor.
Unless specially permitted by the SSE, only the following persons are admitted to the trading floor:
(1) registered traders; and
(2) in-floor supervisors.
Section 2 Trading Participants and Trading Rights
2.2.1 To trade securities on the SSE, members and the institutions approved by the SSE shall apply to the SSE for the right to trade to become trading participants of the SSE.
Trading participants shall trade securities through the Participant Business Unit established by the SSE and in compliance with the Trading Rules and applicable provisions of other market rules of the SSE with respect to securities trading.
2.2.2 Participant Business Unit refers to a basic unit that allows a trading participant to trade securities on the SSE, to hold and exercise relevant trading rights and to be subject to the administration of the SSE in respect of relevant trading activities.
2.2.3 Detailed rules on the administration of Participant Business Unit and relevant trading rights will be separately formulated by the SSE and shall come into effect upon the approval of the CSRC.
Section 3 Trading Instruments
2.3 The following securities can be listed and traded on the SSE:
(1) stocks;
(2) funds;
(3) bonds;
(4) bond repos;
(5) warrants;
(6) depositary receipts; and
(6) other instruments as approved by the CSRC.
Section 4 Trading Hours
2.4.1 The SSE is open for trading from Monday to Friday.
The market is closed on public holidays and other days as announced by the SSE.
2.4.2 Except as otherwise specified herein, with respect to auction trading, the opening call auction runs from 9:15 to 9:25 on each trading day, the continuous auction from 9:30 to 11:30 and from 13:00 to 14:57 on each trading day, and the closing auction from 14:57 to 15:00 on each trading day.
With respect to the trading of funds, bonds or bond repos, the opening auction runs from 9:15 to 9:25 on each trading day, and the continuous auction from 9:30 to 11:30 and from 13:00 to 15:00 on each trading day.
Securities whose trading is suspended and resumed during trading hours are excluded from those auctions.
With the approval of the CSRC, the SSE may adjust trading hours based on market development.
2.4.3 Trading hours will not be extended in the event of a temporary market closure for reasons.
Chapter III Securities Trading
Section 1 General Rules
3.1.1 Upon accepting an investor’s instruction, the member shall place an order with the SSE in accordance with the instruction and assume the corresponding trading and settlement obligations.
After the buy or sell order submitted by the member on behalf of the investor is executed, the investor shall deliver the purchase payment or the securities sold to the member, and the member shall deliver the securities purchased or the sale payment to the investor.
3.1.2 Trading participants shall send trading orders to the SSE trading system through relevant order routing system, Participant Business Units and order submission channels and effect trades according to the Trading Rules. Trading results and other records are sent to trading participants by the SSE.
3.1.3 Trading participants shall properly store the records on client instructions and order submissions according to relevant provisions.
3.1.4 Except for turn-around trades, securities purchased by investors shall not be resold before settlement.
A turn-around trade of securities refers to a complete or partial resale of any securities purchased by investors after confirmation of execution but before settlement.
3.1.5 Intraday turn-around trading is applicable to the following instruments:
(1) bonds;
(2) bond exchange-traded funds;
(3) money market exchange-traded funds;
(4) gold exchange-traded funds;
(5) commodity futures exchange-traded funds
(6) cross-border exchange-traded funds;
(7) cross-border listed open-ended funds;
(8) warrants; and
(9) other instruments as approved by the CSRC.
The abovementioned cross-border exchange-traded funds and cross-border listed open-ended funds shall be limited to the open-ended funds that track index constituents or underlying investments to which intraday turn-around trades are applicable.
Turn-around trades of B-shares are available on the next trading day.
3.1.6 The SSE may adopt a market maker system in view of market conditions. The specific rules for the system will be separately formulated by the SSE and shall come into effect upon the approval of the CSRC.
Section 2 Designation
3.2.1 The SSE implements a designated trading system for all the securities traded on the SSE market, except B-shares traded by overseas investors.
3.2.2 Under the designated trading system, an investor who trades securities on the SSE must designate one member in advance as its agent and trade through its designated member.
3.2.3 An investor shall enter into an agreement with its designated member and specify therein the rights, obligations and responsibilities of both parties. After the agreement is executed, the member can complete the designation process through the SSE trading system based on the request of the investor.
3.2.4 The SSE accepts designation instructions during trading hours. Such instructions become valid immediately after being accepted by the SSE trading system.
3.2.5 An investor who intends to change its designation shall submit a cancellation request with its current designated member, who shall enter the request into the SSE trading system accordingly. The designated member may not restrict, obstruct or delay any cancellation request from an investor who meets applicable requirements.
3.2.6 Once a designation is cancelled, the investor may reapply to designate another member.
3.2.7 Other matters in respect of designated trading shall be governed by the relevant provisions of the SSE.
Section 3 Client Instruction
3.3.1 To trade securities, an investor shall open a securities account and a cash account and sign a broker-client agreement with a member. Once the agreement comes into effect, the investor will become a brokerage client (hereinafter referred to as “client”) of the member.
Investors shall open securities accounts according to the relevant provisions of the registration and clearing institution designated by the SSE.
3.3.2 Clients may instruct a member to buy or sell securities on their behalf either in writing or through self-service channels such as telephone, self-service terminal or the Internet. Clients shall follow the relevant operational procedures when placing an order through self-service channels.
3.3.3 A member shall enter into a self-service trading agreement with any of its clients who intends to trade securities through self-service channels.
3.3.4 Unless otherwise specified by the SSE, an order placed by a client shall include the following:
(1) securities account number of the client;
(2) code of the security;
(3) trading direction;
(4) instructed quantity;
(5) instructed price; and
(6) other information as required by the SSE and the designated member.
3.3.5 Clients may trade securities through their members by placing limit orders or market orders.
A limit order is an instruction given by a client to a member to buy a particular security at a specified price or lower, or to sell at a specified price or higher.
A market order is an instruction given by a client to a member to buy or sell a particular security at the current best market price.
3.3.6 Clients may cancel the unfilled portion of their client instructions.
3.3.7 Member shall return to its client the cash or securities corresponding to a cancelled or expired client instruction upon confirmation of the cancellation or expiry.
3.3.8 Margin trading and short selling services as may be provided by members to clients in securities trading shall be governed by relevant provisions.
Section 4 Order Placement
3.4.1 The SSE trading system accepts trading participants’ auction orders between 9:15-9:25, 9:30-11:30 and 13:00-15:00 on each trading day.
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