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In order to promote the effective functioning of the oils and soybean meal futures market and provide the clients with more convenient delivery services, based on the experience in the previous pilots for the switch of warehouse receipts on oils and soybean meal futures, DCE will join hands with the major groups to launch the new round of pilot program for the switch of warehouse receipts on Soybean Meal, Soybean Oil and RBD Palm Olein, in a bid to further reduce the warehouse receipt switch costs and increase opportunities for switch application in delivery months, with the newly added application time on the seventh trading day of the delivery month. Meanwhile, the move will increase the number of the pilot groups and improve the quotation system. The new round of warehouse receipts switch business will be operated on the “OTC market comprehensive service platform” (http://otc.dce.com.cn/portal/swap/index). The related matters are hereby notified as follows:
1. Pilot Groups for the Switch
The pilot enterprises for the switch of soybean meal warehouse receipts are 10 large-size groups (pilot groups for short), including China Agri-Industries Holdings Limited, Cargill Investment (China) Ltd., Chinatex Grains and Oils Imp. & Exp. Co., Ltd., Bunge (Shanghai) Management Co., Ltd., Jiusan Oils & Grains Industries Group Co., Ltd., Yihai Kerry Investment Co., Ltd., Sinograin Oils Co., Ltd., Golden Agri-Resources (China) Investment Co., Ltd., Noble Agri-Trade (Shanghai) Co., Ltd. and Louis Dreyfus (China) Trade Co., Ltd.
The pilot enterprises for the switch of soybean oil warehouse receipts are 5 large-size groups (pilot groups for short), including China Agri-Industries Holdings Limited, Cargill Investment (China) Ltd., Chinatex Grains and Oils Imp. & Exp. Co., Ltd., Sinograin Oils Co., Ltd. and Yihai Kerry Investment Co., Ltd.
The pilot enterprises for the switch of palm olein warehouse receipts are 4 large-size groups (pilot groups for short), including China Agri-Industries Holdings Limited, Cargill Investment (China) Ltd., Sinograin Oils Co., Ltd. and Yihai Kerry Investment Co., Ltd.
The pilot groups have made the commitment to providing the warehouse receipts switch service on soybean meal, soybean oil and palm olein during the pilot period according to the requirements in this notice.
2. Requirements for the Switch
For the standard warehouse receipts of the delivery warehouses under the pilot groups for soybean meal, soybean oil and palm olein that have been bought through current month delivery (excluding exchange for physicals), the clients can apply for picking up the goods at the relevant switch warehouses of the pilot group announced in this notice (“warehouse receipt for physicals” for short) or switching to the futures standard warehouse receipts of the relevant delivery warehouses in the pilot group (“warehouse receipt for warehouse receipt” for short).
3. Switch Charges and Process
The related requirements, limits, charges, and process for the switch of the warehouse receipts shall be handled in accordance with the requirements of the attachments to this notice.
The warehouse receipts switch business requires the futures brokerage company members to submit to DCE the “OTC Market Comprehensive Service Platform Futures Brokerage Companies Member Account Application Form” (See Attachment 9) before submitting switch application, in order to register as the user of the “OTC Market Comprehensive Service Platform” (http://otc.dce.com.cn/portal/swap/index), which will be used in the approval of the application of the member’s clients’ registration. The members who have the demand for switch or may participate in the warehouse receipts switch in the future are requested to submit the users’ application form to DCE as soon as possible.
The specific business operation process for the “OTC Market Comprehensive Service Platform” can be found in Attachment 10.
4. Time for the Switch Pilot
This pilot of warehouse receipts switch starts from the date of the issuance of this notice, and ends on July 31, 2016. If other enterprises join in the switch pilot during the pilot period, the pilot enterprises and their limits for switch will be announced separately, and other matters switch limits and charges, formula for calculating price differentials in switch and switch process shall be handled in accordance with the requirements in the attachments to this notice. If the pilot groups have new factory warehouses added or original factory warehouses removed during the pilot period, whether the adjusted factory warehouse joins in or quits the pilot shall be announced by DCE for the group during the adjustment of the factory warehouse.
