In order to adapt to the market development and further increase the running quality of the market, on August 16, Dalian Commodity Exchange released a notice and announced the amendaments to the implementation rules of related businesses including the trading, clearing, delivery and risk management.
Previously, according to the market demand and the practical business operations, DCE already sorted out the business regulations that were not inconsistent with the market development in a full scope. On baisis of that, DCE made adjustements to the rules of related businesses including seat administration, trading representative administratin, price and trasacton code system and clearing etc. In total, the amendaments involved fifteen items of content.
The content of the amendaments to the rules this time is mainly as follows:
First, in order to adapt to the electronization of the seat management and trading representative management, it is clearly regulated that the members should conduct businesses related with seat management and trading representative management through the member service system. And requirements of the written materials are reduced. The regulations of the seats of pit trading and remote trading are unified and simplified. And the efficiency of seat management is further increased.
Second, constraint regulations are added regarding the trading behaviors of the trading representatives. It is regulated that the trading representatives shall not accept the trading orders of other member units and individuals, shall not provide consultation for other member units and individuals in order to conduct futures transaction for themselves.
Third, in order to facilitiate the members and clients to understand the trading rules in a more detailed way, and make them to form reasonable expecation on the trading results, clear regulations are formulated regarding the types of trading orders that the exchange computer matching system shall accept, the application status, and the principles for opening positions and liquidating positions.
Fourth, regualtions on the trading code management for members or clients are added. It is clearly regulated that the members or clients shall abide by the principle of being honest and creditable, manage well their own trading codes, and bear corresponnding responsibilities for the illegal behaviors under the trading codes. If there are cases where the members or clients do not manage well their own trading codes, and illegal behaviors are resulted due to use of the trading codes by others, the exchange shall have the right to issue corresponding proceeding measures to them.
Additionally, regarding the clearing rules, in order to facilitate the members to understand the clearing business of profit and loss, the calculation formula for the profit and loss of the same day is presented in a more detailed way. In order to increase the transparency of the interest rate information, it is regulated that the exchange shall disclose the interest rate for the calculation of the interests of the members’ clearing margin. According to related regulations and the market practice, the conditions for trasferring positions are amended. Particularly, in order to increase the position-transfering efficiency and protect the clients’ rights and interests, the regulation that the “application letter for the position-transferring agreed by the client” shall be submitted under the cases of consolidated position transferring is canceled. According to the practical business operation, the working content for the exchange during the circulation process of the added value invoice of the delivery business is presented in a more detailed way, and the description fo the clearing rules for the transfer from the futures to the actuals is also made more detailed. Regulations on the proceeding of the offsetting business thorugh the electronic mode by the members are added. In order to enhance the funds supervision and management, the liabilities for the depository banks are added.
Related people of DCE said that the amendaments of the trading and clearing rules etc adapted to the market deveopment, made improvement and added details to the original rules, facilitated the members and clients to understand and apply well the market rules, and was also favorable for the exchange to further do well the market service, and increase the working efficiency of the personnel. Meanwhile, the regulations on the liabilities of trading code management are just timely improvements to the rules in light of the problems discovered during the discipline punishment currently issued by the exchange. Adding these rules are favorable for inceasing the market supervision level of the exchange and enhance the frontline supervision capability.
Since the year of 2011, on basis of soliciting opinions from a wide scope, DCE sorted out all the existing business rules, actively promoted the implementation of the rules and fulfilled the market commitments. After the sorting out of the rules in 2011, in 2012, DCE further initiatively followed the working thought of getting closer to the market and improving the business rules, made further improvement to the rules, enhanced the combination with the market demand, actively promoted the reform and innovation of varioius businessess of the exchange. The amendaments to related rules including the trading and clearing rules are just the continusing improvements to the rules of the exchange after the revisions of related business rules in May this year, and the system foundation for the fairness, standardization and sound running of the market is further solidified.
Market insiders all said that the amendaments to the rules this time increased the working efficiency of the members and the service level of the exchange, and they were also very favorable for the members and clients to understand and apply the related rules, which would further increase the running quality of the futures market.
According to the notice, the ammendament of the Article 46 of the “Clearing Rules of Dalian Commodity Exchange” that the margin-exit time was changed from before the market closing to after the market closing will be implemented as of August 20, 2012, and all other amendaments will take effect as of August 17, 2012.