Futures and Derivatives Law of the People's Republic of China

chapter I general provisions article 1 this law is formulated for the purpose of regulating futures trading and derivatives trading, safeguarding the legitimate rights and interests of all parties, maintaining market order and social public interests, promoting the futures market and derivatives market to serve the national economy, preventing and defusing financial risks, and safeguarding national economic security. Article 2 This Law shall apply to futures trading, derivatives trading and related activities within the territory of the People's Republic of China.

futures trading and derivatives trading and related activities outside the People's Republic of China and China, which disturb the market order in the People's Republic of China and damage the legitimate rights and interests of domestic traders, shall be dealt with in accordance with the relevant provisions of this Law and 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 other than futures trading, which take swap contracts, forward contracts, non-standardized option contracts and their combinations as trading targets.

the term "futures contract" as mentioned in this law refers to a standardized contract uniformly formulated by futures trading places and agreed to deliver a certain amount of subject matter at a specific time and place in the future.

the option contract mentioned in this law refers to a standardized or non-standardized contract that stipulates that the buyer has the right to buy or sell the agreed subject matter (including futures contracts) at a specific price at a certain time 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 in a specific time in the future.

the term "forward contract" as mentioned in this law refers to a financial contract other than a futures contract, which stipulates to deliver a certain amount of the 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 the functions of finding prices, managing risks and allocating resources.

the state encourages the futures market and derivatives market to engage in risk management activities such as hedging.

the state takes measures to promote the development of agricultural products futures market and derivatives market, and guide the production and operation of domestic agricultural products.

the term hedging as mentioned in this law refers to the activities of traders in futures trading and derivatives trading that are basically consistent with the above assets and liabilities in order to manage the risks arising from the changes in their values. Article 5 The futures market and derivatives market shall establish and improve the system and mechanism of 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 prohibit fraud, market manipulation and insider trading. Article 7 All parties involved in futures trading and derivatives trading have equal legal status and shall abide by 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, such provisions shall apply.

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 according to the division of responsibilities. Article 9 Futures and derivatives industry associations shall exercise self-discipline management according to law. Article 1 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 in a legally established futures exchange or other futures trading places (hereinafter referred to as futures trading places) approved by the the State Council Futures Regulatory Authority according to law, by means of open centralized trading or other means approved by the the State Council Futures Regulatory Authority.

it is forbidden to conduct futures trading outside the futures trading place.

derivatives trading can be conducted by agreement trading or other trading methods stipulated by the State Council. Article 12 No unit or individual may manipulate the futures market or derivatives market.

It is forbidden to manipulate the futures market to influence or intend to influence the futures trading price or the futures trading volume by the following means:

(1) buying and selling contracts jointly or continuously, either alone or in collusion, by concentrating the advantages of funds and positions or by taking advantage of information;

(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 their actual control;

(4) using false or uncertain material information to induce traders to conduct futures trading;

(5) making frequent or large-scale declarations and canceling the declarations without closing the transaction;

(6) make public comments, forecasts or investment suggestions on related futures transactions or transactions of contract subject matter, and conduct reverse operations or related operations;

(7) hoarding spot to influence the futures market;

(8) 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 activities in relevant markets;

(1) other means to manipulate the futures market. Article 13 An insider of insider information of futures trading and derivatives trading and a person who illegally obtains insider information shall not engage in related futures trading or derivatives trading, express or imply that others engage in futures trading or derivatives trading related to insider information, or disclose insider information.