Notice on Investigation and Penalties for Violations of Relevant Rules and Regulations in January and February 2020

Updated on Mar 17,2020

Notice on Investigation and Penalties for Violations of Relevant Rules and Regulations in January and February 2020

Shanghai International Energy Exchange (hereinafter referred to as “INE”) has been on continuous efforts in investigating and penalizing violations of relevant rules and regulations, so as to strengthen the risk management of the futures market, regulate the futures trading activities and protect the legitimate rights and interests of futures market participants. The enforcement against such violations in January and February 2020 are listed as follows:

In the aspect of administration of abnormal trading behaviors, in January, INE has dealt with a total of 11 cases, among which 3 cases were self-trades and 8 cases were frequent order cancellations. INE has separately notified the relevant clients by phone through the members and placed 3 clients on INE’s watch list, notified 3 abnormal trading behaviors to all the members. In February, INE has dealt with 2 cases, both of which were self-trades. INE has separately notified the relevant clients by phone through the members.

In the aspect of identification and cooperative investigation of accounts with actual control relationship, in January, INE has identified 15 groups of 34 clients that exist the actual control relationship. In February, INE has identified 5 groups of 12 clients that exist the actual control relationship.

In the aspect of inspecting cases violating trading rules, in January, INE has dealt with 2 cases suspected of violation trading rules, among which one was wrong order and another case was price fluctuation caused by market price order. In February, INE has dealt with 1 case suspected of violation trading rules, which was price fluctuation caused by market price order. INE reminds investors to be in compliance with its rules in the trading activities and cooperate with the reporting of actual control relationship accounts.

INE hereby notifies as the above.

Shanghai International Energy Exchange

Mar. 17, 2020