Article 21 Under any of the following circumstances, the Exchange will forcibly close its position:
(1) The balance of the settlement reserve of the settlement member is less than zero, and it has not been replenished before the end of the first section.
(2) Customers and trading members engaged in proprietary business have held positions exceeding the position limit standard and failed to close their positions before the end of the first section;
(3) Forced liquidation by the Exchange due to violation of regulations or breach of contract.
(four) according to the emergency measures of the exchange, it should be forced to close the position;
(5) Other circumstances in which the Exchange requires compulsory liquidation.
Article 22 positions that need to be closed by force shall be executed by members before the end of Section 1, unless otherwise stipulated by the Exchange. If the member fails to complete the execution within the prescribed time limit, it shall be enforced by the exchange.
(1) member implementation
Where the liquidation is forced due to the circumstances in Items (1) and (2) of Article 21 of these Measures, the members shall determine the liquidation principle by themselves, and the liquidation result shall conform to the provisions of the Exchange.
(2) Execution by the Exchange
1. Forced liquidation due to Item (1) of Article 21 of these Measures:
For the positions that need to be closed by force, the Exchange will give priority to the contracts with large positions as the contracts with forced positions according to the total positions of the contracts settled on the previous trading day, and then distribute them according to the positions of all customers of the member contracts.
Where the exchange forcibly closes the positions of multiple clearing members, it shall select the clearing members who forcibly close the positions in the order of the amount of additional margin.
2. Forced liquidation due to the reasons in Item (2) of Article 21 of these Measures:
Where the Exchange forcibly closes its positions and exceeds its positions, when a customer holds positions with multiple members, he shall select the members to forcibly close the positions according to the order of the number of positions from large to small.
3. In case of compulsory liquidation in Items (3), (4) and (5) of Article 21 of these Measures, the Exchange shall determine the compulsory liquidation position according to the specific conditions of the members or customers involved.
When a member meets the circumstances specified in Items (1) and (2) of Article 21 of these Measures, the Exchange shall first determine the forced liquidation position according to the circumstances in Item (2), and then determine the forced liquidation position according to the circumstances in Item (1).
Article 23 Execution procedures for compulsory liquidation
(1) notification
The Exchange shall issue a compulsory liquidation request to the relevant clearing members in the form of the Notice of Compulsory Liquidation (hereinafter referred to as the Notice). The notice is sent together with the settlement data of the day, and the relevant settlement members can obtain it through the exchange system unless the exchange specially delivers it.
(2) Implementation and confirmation
1. After the opening of the market, the relevant members will close their positions on their own until they meet the requirements of the Exchange;
2. If the clearing member fails to complete the liquidation within the prescribed time limit, the Exchange will carry out compulsory liquidation on the remaining part;
3. The results of forced liquidation are sent with the trading records of the day, and relevant information can be obtained through the exchange system.
Article 24 The forced liquidation price is formed through market transactions.
Article 25 If all the positions cannot be closed by force within the prescribed time limit due to price limit or other market reasons, the remaining forced positions can be postponed to the next trading day and continue to be closed by force, in accordance with the principle of Article 22 of these Measures, until it meets the requirements of the Exchange.
Article 26 If the forced liquidation cannot be completed on the same day due to the price limit or other market reasons, the Exchange will deal with the members accordingly according to the settlement results of the day.
Twenty-seventh due to price restrictions or other market reasons, forced liquidation can only be postponed, and the losses arising therefrom shall be borne by the directly responsible person; If the liquidation is not completed, the holder shall continue to bear the responsibility of holding positions or the obligation of delivery.
Article 28 The profits generated by members' forced liquidation shall be owned by the person directly responsible; The balance of profit and loss arising from the compulsory liquidation of the exchange shall be implemented in accordance with the relevant provisions of the state; The losses caused by forced liquidation shall be borne by the person directly responsible.
The person directly responsible is the customer, and the losses caused by forced liquidation shall be borne by the customer's members first, and then recovered from the customer.