Legal Analysis: According to the Regulations on the Administration of Futures Trading, the examination and approval authority for the establishment of a futures exchange is the the State Council Futures Regulatory Authority. The establishment of a futures exchange must be examined and approved by the the State Council Futures Regulatory Authority. Without the approval of the futures regulatory authority of the State Council or the State Council, no unit or individual may set up a futures trading place or organize futures trading and related activities in any form.

Legal basis: Regulations on the Administration of Futures Trading

Article 6 The establishment of a futures exchange shall be subject to examination and approval by the futures regulatory authority of the State Council. Without the approval of the futures regulatory authority of the State Council or the State Council, no unit or individual may set up a futures trading place or organize futures trading and related activities in any form.

Article 7 A futures exchange shall not aim at making profits, and shall implement self-discipline management in accordance with the provisions of its articles of association. A futures exchange shall bear civil liability for all its property. The person in charge of the futures exchange shall be appointed and removed by the the State Council futures regulatory agency. Measures for the administration of futures exchanges shall be formulated by the the State Council futures regulatory agency.

Article 8 The members of a futures exchange shall be enterprise legal persons or other economic organizations registered in People's Republic of China (PRC). The futures exchange may implement the member grading settlement system. The members of the futures exchange that implement the member grading settlement system are composed of settlement members and non-settlement members.