Dalian Commodity Exchange (DCE) officially releases and implements the new “Bylaws of Dalian Commodity Exchange” (the “Bylaws” for short) and the new “Trading Rules of Dalian Commodity Exchange” (the “Trading Rules” for short) on August 1, 2019.
With the listing of options products, the introduction of overseas traders into iron ore futures, and the over-the-counter market construction, DCE has preliminarily transformed from a single and closed commodity futures exchange to a diversified, open and comprehensive derivatives exchange and marched towards the new journey of building a first-class derivatives exchange in the world.
In this new journey, to adapt to the new situation, new development and new requirements, DCE has amended the “Bylaws” and the “Trading Rules” with an aim of consolidating the achievements of strategic transformation, enriching the connotation of the diversified and open development, strengthening the depth of international development, expanding the width of the over-the-counter market building, and increasing the self-regulation level.
The amendments to the “Bylaws” and the “Trading Rules” have maintained on the whole the original structures, with 11 articles revised in the “Bylaws”, and 17 articles revised, 6 newly added and 1 deleted in the “Trading Rules”. The revision includes the following aspects:
The first is adapting to the international development. DCE has obtained the QCCP status from the China Securities Regulatory Commission (CSRC), and this identity has been made clear to be in line with international conventions and standards. Besides, to meet the PFMI (Principles for Financial Market Infrastructures) evaluation requirement, DCE has set up the Risk Management Special Committee under the Board of Governors and adjusted the rules for overseas institutions to open an account according to the conventions of overseas trading, thus improving the enforceability of relevant rules.
The second is offering institutional space for the over-the-counter market building. The amendments have made clear that the exchange and its members can engage in futures trading and relevant activities, thus offering institutional support for its over-the-counter business.
The third is improving the self-regulation of the exchange. The amended “By laws” and “Trading Rules” have made clear the key systems of trading limit, risk alert and others, added mitigation measures of the exchange, and standardized behaviors including the exchange reporting violation clues to the CSRC.
In addition, the legitimate authorities of the Board of Governors and its Chairman, the method of convening an important meeting, the honest system of the exchange and others have been supplemented or adjusted in the “Bylaws” and the “Trading Rules”. And the literal expressions of some articles in the “Trading Rules” have been optimized.
According to the established development strategy, DCE will continue to optimize rules, meet the actual need of the internationalization and over-the-counter business development, offer more complete institutional guarantee for enhancing the opening-up and accelerating the over-the-counter market building, boost domestic and overseas traders’ confidence in the DCE market, and build an international first-class, diversified and open derivatives exchange.
