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Dear Market Participants,
In order to support implementation of Shenzhen-Hong Kong Stock Connect Program, Shenzhen Stock Exchange (hereinafter referred to as the Exchange) hereby amends articles regarding trading participants in the Trading Rules of Shenzhen Stock Exchange (2016). Detailed revisions are as follows:
First, adjustment of definition of trading participants.
2.2.1 Members and institutions recognized by the Exchange to trade securities through the Exchange shall apply with the Exchange for trading authorization and become trading participant of the Exchange.
Trading participants shall conduct securities trading through the trading units established upon their application with the Exchange. Trading participants shall observe these trading rules and the Exchange’s other business rules regarding securities trading.
Second, supplementing provisions on trading participants’ order submissions.
Paragraph 3.1.2 has been amended as follows:
3.1.2 Trading participants shall submit buy or sell orders to the Exchange trading system through the order routing system. Orders shall be executed in accordance with these Rules. Trading records are sent to trading participants by the Exchange.
Paragraph 3.1.3 has been amended as follows:
3.1.3 Trading participants shall keep under safe custody the records of the investors’ instructions and submission of orders pursuant to relevant regulations.
Paragraph 3.3.1 has been amended as follows:
3.3.1 The Exchange’s trading system accepts auction orders routed by trading participants between 9:15-9:25, 9:30-11:30 and13:00-15:00on each trading day.
The Exchange’s trading system will not accept cancellation of any auction orders between 9:20-9:25 and 14:57-15:00 on each trading day. During other trading hours, unexecuted orders can be cancelled. The Exchange may adjust time frames for accepting orders.
Paragraph 3.3.3 has been amended as:
3.3.3 The Exchange accepts limit orders and market orders from trading participants.
Paragraph 3.5.6 has been amended as
3.5.6 Clearing and settlement of securities trades shall be conducted pursuant to the regulations of the registration and clearing institution designated by the Exchange.
Paragraph 5.2.4 has been amended as:
5.2.4 The real-time quotations are transmitted via the communication system licensed by the Exchange. Trading participants shall use the real-time quotations within the scope of license granted by the Exchange.
Third, supplementing provisions over regulatory matters regarding trading participants.
Paragraph 6.6 has been amended as:
6.6 The Exchange may conduct on-site or off-site investigations of the matters that occur in the trading of securities and need to be put under intense monitoring. Members, their brokerage branches, other trading participants and investors shall coordinate with the Exchange in the latter’s investigations.
Paragraph 6.7 has been amended as:
6.7 During on-site or off-site investigations, the Exchange may require the relevant members, their brokerage branches, other trading participants and investors to provide the following documents and information timely, accurately and completely as it deems necessary:
(1) Investors’ account opening information, letter of authorization, capital account information, as well as the transaction information with respect of the relevant securities accounts;
(2) Information on the de facto controller or operator of the relevant securities accounts or capital accounts, source of funds and an explanation on whether the relevant accounts are associated;
(3) Explanations on the matters that are put under intense monitoring during securities trading; and
(4) Other information related to the matters under intense monitoring of the Exchange.
Paragraph 8.1 has been amended as:
8.1 In case that trading disputes arise between trading participants, between members and their clients, relevant members and other trading participants shall record particulars of the disputes for the Exchange’s inspection. In case that the trading disputes affect normal trading, the members shall report to the Exchange in a timely manner.
Paragraph 8.2 has been amended as:
8.2 When disputes arise between trading participants, between members or between members and their clients, the Exchange may provide necessary trading data pursuant to relevant regulations.
Paragraph 9.2 has been amended as:
9.2 Trading participants shall pay handling fees and other relevant charges pursuant to applicable regulations. In addition, members shall pay membership management fees to the Exchange pursuant to applicable regulations.
Paragraph 10.1 has been amended as:
10.1 Where a member violates these Rules, the Exchange will impose disciplinary sanctions on the trading participant in accordance with the Membership Management Rules of Shenzhen Stock Exchange.
These rules take effect on day of promulgation. Trading Rules of Shenzhen Stock Exchange revised 2016 shall be amended according this notice and re-released.
