Anyone who engages in futures trading, derivatives trading and related activities inside and outside People's Republic of China (PRC), which disturbs the market order in People's Republic of China (PRC) and damages the legitimate rights and interests of domestic traders, shall be dealt with in accordance with the relevant provisions of this Law and shall be investigated for legal responsibility. Article 3 The term "futures trading" as mentioned in this Law refers to trading activities with futures contracts or standardized option contracts as the trading targets.
Derivatives trading as mentioned in this Law refers to trading activities with swap contracts, forward contracts, non-standardized option contracts and their combinations as the trading targets, except futures trading.
The term "futures contract" as mentioned in this Law refers to a standardized contract that is uniformly formulated by futures trading places and stipulates to deliver a certain amount of subject matter at a specific time and place in the future.
Option contracts mentioned in this Law refer to standardized or non-standardized contracts that stipulate that the buyer has the right to buy or sell the agreed subject matter (including futures contracts) at a certain price in the future.
The term "swap contract" as mentioned in this Law refers to a financial contract that stipulates to exchange specific subject matter with each other at a specific time in the future.
Forward contracts referred to in this Law refer to financial contracts other than futures contracts that stipulate to deliver a certain amount of subject matter at a specific time and place in the future. Article 4 The State supports the healthy development of the futures market and gives full play to its functions of price discovery, risk management and resource allocation.
The state encourages the use of futures markets and derivatives markets to engage in risk management activities such as hedging.
The state shall take measures to promote the development of agricultural futures market and derivatives market, and guide the production and management of domestic agricultural products.
Hedging as mentioned in this Law refers to futures trading and derivatives trading activities that are basically consistent with the above assets and liabilities in order to manage the risks arising from the changes in the value of the above assets and liabilities. Article 5 The futures market and derivatives market shall establish and improve systems and mechanisms for risk monitoring and resolution, limit excessive speculation according to law, and guard against market systemic risks. Article 6 Futures trading and derivatives trading activities shall abide by laws, administrative regulations and relevant provisions of the state, and follow the principles of openness, fairness and impartiality, and fraud, market manipulation and insider trading are prohibited. Article 7 The parties to futures trading and derivatives trading have equal legal status and should follow the principles of voluntariness, compensation, honesty and credibility. Article 8 The futures regulatory authority of the State Council shall exercise centralized and unified supervision and management over the national futures market according to law. If the State Council has other provisions on the supervision and management of interest rate and exchange rate futures, those provisions shall prevail.
The derivatives market shall be supervised and managed by the futures regulatory agency of the State Council or the department authorized by the State Council in accordance with the division of responsibilities. Article 9 Futures and derivatives industry associations shall exercise self-discipline management according to law. Article 10 State audit institutions shall supervise futures trading institutions, futures trading places, futures settlement institutions and the State Council futures supervision and administration institutions through auditing according to law. Chapter II Futures Trading and Derivatives Trading Section 1 General Provisions Article 11 Futures trading shall be conducted at a futures exchange established according to law or other futures trading places approved by the the State Council futures regulatory agency according to law (hereinafter referred to as futures trading places), and shall be conducted in an open and centralized manner or by other means approved by the the State Council futures regulatory agency.
It is forbidden to conduct futures trading outside the futures trading place.
Derivatives trading can be conducted through agreement trading or other trading methods stipulated by the State Council. Article 12 No unit or individual may manipulate the futures market and derivatives market.
It is forbidden to manipulate the futures market by the following means, which affects or intends to affect the futures trading price or futures trading volume:
(a) alone or in collusion, concentrate the advantages of capital, position or use the advantages of information to jointly or continuously buy and sell contracts;
(2) colluding with others to conduct futures trading with each other at the time, price and method agreed in advance;
(3) conducting futures trading between accounts under its actual control;
(4) Using false or uncertain important information to induce traders to conduct futures trading.
(five) not for the purpose of closing a deal, frequently or in large quantities to declare and cancel the declaration;
(six) to make public comments, forecasts or investment suggestions on related futures trading or contract subject matter trading, and to conduct reverse operations or related operations;
(seven) hoarding spot, affecting the futures market;
(eight) in the delivery month or near the delivery month, using improper means to avoid the position limit, forming a position advantage;
(9) Manipulating the futures market through relevant market activities.
(10) Other means of manipulating the futures market. Article 13 Insider of inside information about futures trading and derivatives trading and those who illegally obtain inside information shall not engage in related futures trading and derivatives trading, shall not express or imply others to engage in futures trading and derivatives trading related to inside information, and shall not disclose inside information.