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Recently, a DCE official disclosed in an interview that the Exchange has been inspecting and cracking down on the violations of related regulations this year. It is revealed that since this year, 13 clients has been suspended opening a position, 212 persons have been warned via phone or put on the special supervision list. The detected clues on related violations has also been inspected and handed over.
According to the official, as of late April, DCE took measures to suspend opening a position against unusual transactions and violations 14 times. The violations included spoofing, breach of position limits by related accounts under common control and self-trading, etc.. 5 persons involving in spoofing trading in 9 contracts of Coking Coal, Iron Ore, Metallurgical Coke and Soybean Oil were refused to open a position for one month. 7 persons involving in self-trading in 7 contracts of PP, Corn, Metallurgical Coke, Coking Coal, No. 1 Soybeans and Iron Ore can not open a position for one month. One person violating the position limits on the eggs contracts by related accounts under common control was suspended opening a position for 6 months.
In addition, DCE took measures against other 200 violations. The measures included warning over phone to the chief risk officers of the members whose 83 clients/accounts involving actual control relationship had reached DCE’s penalty standards for self-trading for the first time and whose 97 clients had reached DCE’s penalty standards for spoofing for the first time; for the 18 clients/accounts involving actual control relationship who conducted self-trading and 18 clients who engaged in spoofing, when both of them had reached DCE’s penalty standards for the second time, DCE put them on the special supervision list and notified their futures companies; 4 accounts involving actual control relationship who violated position limits on aggregated positions for the first time appeared on the special supervision list,too. Meanwhile, the detected clues on related violations has also been inspected and handed over.
The official said that given a high price volatility of some products and active transactions this year, DCE enhanced the market supervision, and warned that the investors must stay aware of the current situation, stick to the concept of compliance trading, strengthen the awareness of compliance and consciously safeguard the good order of the market.
The “zero tolerance” attitude of DCE toward violations and its supervisory measures have been recognized by all market participants. Market participants said that as currently some products in futures market tended to be over speculated, the exchange appointed arduous task for risk control. And they added that this year DCE made efforts to safeguard the market principle of “fair, open and just” and protect the legitimate rights and interests of the investors by intensifying market monitoring and supervision, cracking down on all trading violations of regulations in a strict way, and all these work vigorously guaranteed the good order of the market and ensured the safety, stability and development of the market.
