Administrative Measures for Futures Exchanges
Administrative Measures for Futures Exchanges
Administrative Measures for Futures Exchanges
Order of the China Securities Regulatory Commission No. 219
March 29, 2023
The Administrative Measures for Futures Exchanges adopted upon deliberation at the Third Executive Meeting of the China Securities Regulatory Commission in 2023 on March 8, 2023 are hereby issued and shall come into force as of May 1, 2023.
Yi Huiman, Chairman of the China Securities Regulatory Commission
Appendix I: Administrative Measures for Futures Exchanges
Chapter I General Provisions
Article 1 The Measures are formulated in accordance with the Civil Code of the People's Republic of China, the Futures and Derivatives Law of the People's Republic of China (the "Futures and Derivatives Law"), the Company Law of the People's Republic of China, and the Administrative Regulations on Futures Trading, in order to strengthen the supervision and administration of futures exchanges, clarify the functions and responsibilities of futures exchanges, maintain the order of the futures market and promote the vigorous and stable development of the futures market.
Article 2 The Measures shall apply to futures exchanges established within the territory of the People's Republic of China.
Article 3 For the purpose of the Measures, futures exchanges refer to legal persons established in accordance with the Futures and Derivatives Law, the Administrative Regulations on Futures Trading and the Measures who perform the functions and responsibilities specified in the Futures and Derivatives Law, the Administrative Regulations on Futures Trading and the Measures, and are administered on a self-disciplinary basis in accordance with their articles of association and business rules.
For the purpose of the Measures, a futures exchange shall set up a settlement department, which shall perform the functions and responsibilities as a futures settlement institution in accordance with the law and meet the requirements for a futures settlement institution.
Article 4 A futures exchange shall establish a party organization in accordance with the Constitution of the Communist Party of China that shall play a leading role, set the direction, manage the overall situation, ensure the implementation, discuss and decide on major matters of the exchange in accordance with provisions, and guarantee and supervise the full implementation of principles and policies of the Party and the State in the exchange.
Article 5 In organizing futures trading and related activities, a futures exchange shall follow the principle of giving priority to public interests and maintain market fairness, order and transparency.
Article 6 The China Securities Regulatory Commission (the "CSRC") shall exercise centralized and unified supervision and administration of futures exchanges in accordance with the law.
Chapter II Establishment, Modification and Winding Up
Article 7 The establishment of a futures exchange shall be subject to the approval of the CSRC. Without the approval of the CSRC, no entity or individual may establish a futures exchange or organize futures trading or any other related activity in any form.
Article 8 A futures exchange may adopt the organizational form of a membership system or a company system.
The registered capital or initial fund 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 9 The name of a futures exchange shall include the words "commodity exchange" or "futures exchange". No other entity or individual may use the words "futures exchange" in its/his/her name or any other name that may confuse or mislead people.
Article 10 A futures exchange shall have the following responsibilities:
1. providing places, facilities and services for trading;
2. organizing the settlement and delivery of futures trading;
3. formulating and implementing the business rules of the futures exchange;
4. designing varieties of futures contracts and standardized option contracts, and arranging the launch of varieties of futures contracts and standardized option contracts;
5. conducting the real-time monitoring and risk monitoring of futures trading;
6. releasing market information;
7. handling information inquiry business related to settlement and delivery of futures trading;
8. conducting the self-discipline management of members, traders and futures service institutions in accordance with the articles of association and business rules;
9. carrying out the trader education and market cultivation;
10. ensuring the security and stability of the information technology system;
11. investigating and punishing rule breaches; and
12. other responsibilities prescribed by the CSRC.
Article 11 To apply for the establishment of a futures exchange, the applicant shall submit the following documents and materials to the CSRC:
1. an application;
2. articles of association and draft trading rules and settlement 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 the council, or of the board of directors;
6. the names and resumes of senior officers to be employed;
7. documentation on and descriptions of the premises, equipment and funds; and
8. any other documents or materials required by the CSRC.
Article 12 The articles of association of a futures exchange shall specify:
1. the purpose of its establishment and its functions and responsibilities;
2. its name, address and place of business;
3. its registered capital or initial fund and the composition thereof;
4. its business term;
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 functions and 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 13 In addition to the matters listed in Article 12 of the 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 14 The trading rules and settlement 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 of rules, 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 and settlement rules.
In addition to the matters listed in the preceding paragraph, the trading rules and settlement rules of any futures exchange operated on the basis of a company system shall cover the matters prescribed in Article 13 of the Measures.
Article 15 Any change of name or change in registered capital or initial fund, organizational form or equity structure of a futures exchange shall be subject to the approval of the CSRC.
Article 16 Any merger or division of 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 divided shall be assumed by the surviving futures exchange(s), unless otherwise agreed between the futures exchange and the creditor or debtor.
Article 17 Any futures exchange that seeks to provide online trading services shall notify the CSRC within ten days as of the date of making such decision.
Article 18 No futures exchange may establish any branch or any other futures trading venue without the approval of the CSRC.
Article 19 A futures exchange shall be dissolved if:
1. the business term specified in its articles of association expires;
2. a general meeting of its members or a general meeting of shareholders resolves to dissolve the exchange; or
3. the CSRC decides to close the exchange down. The dissolution of a futures exchange shall be subject to the approval of the CSRC.
Article 20 The CSRC shall make an announcement on the winding up of any futures exchange due to a merger, division 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 21 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 22 The general meeting of members shall exercise the following powers:
1. to examine and approve the articles of association, trading rules and settlement rules of the futures exchange, as well as draft modifications thereto;
2. to elect and replace member directors;
3. to review and approve the work reports of the council and the general manager;
4. to review and approve the financial budget and the final account report of the futures exchange;
5. to review the futures exchange's use of its risk reserves;
6. to decide to increase or reduce the registered capital or initial funds of the futures exchange;
7. to decide on matters relating to any proposed merger or division involving the futures exchange, or to change the organizational form, dissolution or liquidation of the futures exchange;
8. to decide on other significant matters submitted by the council of the futures exchange; and
9. any other power prescribed in the articles of association of the futures exchange.
Article 23 The general meeting of members shall be convened by the council once a year and presided over by the chairman of the council. An interim general meeting of members shall be convened if:
1. the number of member directors falls below two-thirds of the number prescribed in the articles of association of the futures exchange;
2. one-third or more of members jointly propose an interim meeting;
3. the council deems it necessary; or
4. any of other circumstances stipulated in the articles of association of the futures exchange occur.
The general meeting of members may be held by on-site meeting, video meeting or other means of communication.
Article 24 When the general meeting of members is to be convened, members shall be notified of the matters to be reviewed at the meeting, and the manner, time and place of the meeting ten days before the meeting is convened. No resolution may be passed in the course of any interim general meeting of members in respect of any matters not listed on the notice.
Article 25 A general meeting of members shall have no effect unless two-thirds or more of members are present.
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Order of the China Securities Regulatory Commission No. 219
March 29, 2023
The Administrative Measures for Futures Exchanges adopted upon deliberation at the Third Executive Meeting of the China Securities Regulatory Commission in 2023 on March 8, 2023 are hereby issued and shall come into force as of May 1, 2023.
Yi Huiman, Chairman of the China Securities Regulatory Commission
Appendix I: Administrative Measures for Futures Exchanges
Chapter I General Provisions
Article 1 The Measures are formulated in accordance with the Civil Code of the People's Republic of China, the Futures and Derivatives Law of the People's Republic of China (the "Futures and Derivatives Law"), the Company Law of the People's Republic of China, and the Administrative Regulations on Futures Trading, in order to strengthen the supervision and administration of futures exchanges, clarify the functions and responsibilities of futures exchanges, maintain the order of the futures market and promote the vigorous and stable development of the futures market.
Article 2 The Measures shall apply to futures exchanges established within the territory of the People's Republic of China.
Article 3 For the purpose of the Measures, futures exchanges refer to legal persons established in accordance with the Futures and Derivatives Law, the Administrative Regulations on Futures Trading and the Measures who perform the functions and responsibilities specified in the Futures and Derivatives Law, the Administrative Regulations on Futures Trading and the Measures, and are administered on a self-disciplinary basis in accordance with their articles of association and business rules.
For the purpose of the Measures, a futures exchange shall set up a settlement department, which shall perform the functions and responsibilities as a futures settlement institution in accordance with the law and meet the requirements for a futures settlement institution.
Article 4 A futures exchange shall establish a party organization in accordance with the Constitution of the Communist Party of China that shall play a leading role, set the direction, manage the overall situation, ensure the implementation, discuss and decide on major matters of the exchange in accordance with provisions, and guarantee and supervise the full implementation of principles and policies of the Party and the State in the exchange.
Article 5 In organizing futures trading and related activities, a futures exchange shall follow the principle of giving priority to public interests and maintain market fairness, order and transparency.
Article 6 The China Securities Regulatory Commission (the "CSRC") shall exercise centralized and unified supervision and administration of futures exchanges in accordance with the law.
Chapter II Establishment, Modification and Winding Up
Article 7 The establishment of a futures exchange shall be subject to the approval of the CSRC. Without the approval of the CSRC, no entity or individual may establish a futures exchange or organize futures trading or any other related activity in any form.
Article 8 A futures exchange may adopt the organizational form of a membership system or a company system.
The registered capital or initial fund 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 9 The name of a futures exchange shall include the words "commodity exchange" or "futures exchange". No other entity or individual may use the words "futures exchange" in its/his/her name or any other name that may confuse or mislead people.
Article 10 A futures exchange shall have the following responsibilities:
1. providing places, facilities and services for trading;
2. organizing the settlement and delivery of futures trading;
3. formulating and implementing the business rules of the futures exchange;
4. designing varieties of futures contracts and standardized option contracts, and arranging the launch of varieties of futures contracts and standardized option contracts;
5. conducting the real-time monitoring and risk monitoring of futures trading;
6. releasing market information;
7. handling information inquiry business related to settlement and delivery of futures trading;
8. conducting the self-discipline management of members, traders and futures service institutions in accordance with the articles of association and business rules;
9. carrying out the trader education and market cultivation;
10. ensuring the security and stability of the information technology system;
11. investigating and punishing rule breaches; and
12. other responsibilities prescribed by the CSRC.
Article 11 To apply for the establishment of a futures exchange, the applicant shall submit the following documents and materials to the CSRC:
1. an application;
2. articles of association and draft trading rules and settlement 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 the council, or of the board of directors;
6. the names and resumes of senior officers to be employed;
7. documentation on and descriptions of the premises, equipment and funds; and
8. any other documents or materials required by the CSRC.
Article 12 The articles of association of a futures exchange shall specify:
1. the purpose of its establishment and its functions and responsibilities;
2. its name, address and place of business;
3. its registered capital or initial fund and the composition thereof;
4. its business term;
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 functions and 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 13 In addition to the matters listed in Article 12 of the 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 14 The trading rules and settlement 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 of rules, 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 and settlement rules.
In addition to the matters listed in the preceding paragraph, the trading rules and settlement rules of any futures exchange operated on the basis of a company system shall cover the matters prescribed in Article 13 of the Measures.
Article 15 Any change of name or change in registered capital or initial fund, organizational form or equity structure of a futures exchange shall be subject to the approval of the CSRC.
Article 16 Any merger or division of 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 divided shall be assumed by the surviving futures exchange(s), unless otherwise agreed between the futures exchange and the creditor or debtor.
Article 17 Any futures exchange that seeks to provide online trading services shall notify the CSRC within ten days as of the date of making such decision.
Article 18 No futures exchange may establish any branch or any other futures trading venue without the approval of the CSRC.
Article 19 A futures exchange shall be dissolved if:
1. the business term specified in its articles of association expires;
2. a general meeting of its members or a general meeting of shareholders resolves to dissolve the exchange; or
3. the CSRC decides to close the exchange down. The dissolution of a futures exchange shall be subject to the approval of the CSRC.
Article 20 The CSRC shall make an announcement on the winding up of any futures exchange due to a merger, division 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 21 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 22 The general meeting of members shall exercise the following powers:
1. to examine and approve the articles of association, trading rules and settlement rules of the futures exchange, as well as draft modifications thereto;
2. to elect and replace member directors;
3. to review and approve the work reports of the council and the general manager;
4. to review and approve the financial budget and the final account report of the futures exchange;
5. to review the futures exchange's use of its risk reserves;
6. to decide to increase or reduce the registered capital or initial funds of the futures exchange;
7. to decide on matters relating to any proposed merger or division involving the futures exchange, or to change the organizational form, dissolution or liquidation of the futures exchange;
8. to decide on other significant matters submitted by the council of the futures exchange; and
9. any other power prescribed in the articles of association of the futures exchange.
Article 23 The general meeting of members shall be convened by the council once a year and presided over by the chairman of the council. An interim general meeting of members shall be convened if:
1. the number of member directors falls below two-thirds of the number prescribed in the articles of association of the futures exchange;
2. one-third or more of members jointly propose an interim meeting;
3. the council deems it necessary; or
4. any of other circumstances stipulated in the articles of association of the futures exchange occur.
The general meeting of members may be held by on-site meeting, video meeting or other means of communication.
Article 24 When the general meeting of members is to be convened, members shall be notified of the matters to be reviewed at the meeting, and the manner, time and place of the meeting ten days before the meeting is convened. No resolution may be passed in the course of any interim general meeting of members in respect of any matters not listed on the notice.
Article 25 A general meeting of members shall have no effect unless two-thirds or more of members are present.
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