Chapter I General Provisions

Article 1 These Measures are formulated in accordance with the Trading Rules of Zhengzhou Commodity Exchange in order to strengthen the risk management of futures trading, safeguard the legitimate rights and interests of futures trading parties, and ensure the normal progress of futures trading of Zhengzhou Commodity Exchange (hereinafter referred to as the Exchange).

Article 2 The risk management of futures trading shall implement the margin system, the price limit system, the position limit system, the large account reporting system, the compulsory position closing system and the risk warning system.

Article 3 The Exchange, members and clients must abide by these Measures.

Chapter II Margin System

Article 4 The margin system shall be applied to futures trading.

See the following table for the minimum trading margin standards of various types of futures contracts:

Variety	Minimum transaction margin standard
Steam coal	5%

Article 5 The trading margin standard of the futures contract shall be managed in accordance with the three periods of the "normal month" (the month before the delivery month), "the month before the delivery month" and "the delivery month" of the listed trading of the futures contract.  

Article 6 The trading margin standards of various types of futures contracts during the three periods are shown in the following table:

Variety	Normal month	One month before the delivery month			Delivery month
		Early ten days	Mid day	Late ten days
Steam coal	5%	5%	5%	10%	20%

Article 7 In the course of trading, the trading margin of the corresponding standard shall be collected according to the settlement price of the futures contract on the previous trading day when opening positions on the same day. At the time of settlement on the current day, all positions of the futures contract shall receive the trading margin of the corresponding standard according to the settlement price on the current day.

Article 8 If the period in which a futures contract is located meets the requirements for adjusting the trading margin, all positions of the futures contract shall receive the corresponding trading margin according to the new trading margin standard from the close of the market on the trading day before the first day of the period.

Article 9 The cumulative increase (decrease) (N) of the price change of a futures contract calculated by the settlement price for four consecutive trading days (i.e. D1, D2, D3, D4 trading days) reaches three times the increase (decrease) specified in the futures contract or five consecutive trading days (i.e. D1 D2, D3, D4 and D5 trading days), if the cumulative increase (decrease) (N) reaches 3.5 times of the increase (decrease) specified in the futures contract, the trading ownership will increase the trading margin standard; The increase in the trading margin standard shall not be more than three times the trading margin standard applicable to futures contracts at that time.

The calculation formula of N is as follows:

　　N＝(Pt—P0)／P0×100%   t=4，5

P0 is the settlement price of the trading day before D1 trading day

Pt is the settlement price on transaction day t, t=4,5

Article 10 In case the market is closed for a long time on statutory holidays, the Exchange may adjust the margin standard and the limit range of rise and fall of futures contracts before the market is closed.

Article 11 When the market risk is significantly increased due to the special trading situation of a futures contract, the Exchange may take the following measures according to the market risk situation of a futures contract:

（1） Limit deposit and withdrawal;

（2） Restrict opening and closing positions;

（3） Adjust the trading margin standard of the futures contract;

（4） Adjust the limit range of the futures contract.

When the market situation of a futures contract tends to be flat, the Exchange can restore the above measures to the normal level.

If the exchange adjusts the trading margin standard or the range of limit, it shall make an announcement and report to the CSRC for the record.

Article 12 For futures contracts that simultaneously apply to two or more of the provisions of these Measures with respect to the adjustment of trading margin standards, the trading margin standards shall be charged at the highest value.

Article 13 If a member fails to pay the trading margin in full and on time, the Exchange has the right to forcibly close the position of its relevant futures contracts until the margin can maintain its position level.

Chapter III Price Limit System

Article 14 The futures trading shall adopt the price limit system, and the Exchange shall stipulate the maximum daily price fluctuation range of each listed futures contract.

Article 15 The daily limit for the rise and fall of each variety of futures contract shall be ± 4% of the settlement price of the previous trading day.

Article 16 On the day when a new futures contract is listed, the range of the price limit is twice the range of the price limit actually executed by the futures contract.

If there is a deal on that day, the next trading day will return to the specified limit range.

If there is no transaction on that day, the next trading day will continue to implement the limit range of the previous trading day.

Article 17 Where a futures contract is concluded at the limit price, the principle of transaction matching shall be the priority of closing position and time.

Article 18 Within 5 minutes before the closing of a certain trading day, a futures contract has only a buying (selling) order at the closing price, but no selling (buying) order at the closing price, or it is closed as soon as there is a selling (buying) order, but the closing price is not opened, which is referred to as the unilateral no quotation for rising (falling) the closing price (hereinafter referred to as the unilateral market).

Article 19 If a futures contract has unilateral market on a certain trading day (the trading day is called D1 trading day, and the following trading days are called D2, D3, and D4 trading days respectively), the trading margin standard of the futures contract shall be increased by 50% on the basis of the original trading margin standard at the settlement of D1 trading day and D2 trading day; The price limit of the futures contract on D2 trading day is increased by 50% on the basis of the original price limit.

D2 If there is no unilateral market in the same direction for the futures contract on the trading day, the trading margin standard at the settlement of the day will return to the level before adjustment; On the D3 trading day, the range of price limit recovered to the level before adjustment. In case of unilateral market in the same direction on D2 trading day, the increased trading margin standard will remain unchanged at the time of settlement on that day and on D3 trading day, and the increased limit range will remain unchanged on D3 trading day.

D3 If there is no unilateral market in the same direction for the futures contract on the trading day, the trading margin standard at the settlement of the day will return to the level before adjustment; On D4 trading day, the range of price limit recovered to the level before adjustment. On D3 trading day, if the futures contract still has unilateral market in the same direction (that is, unilateral market in the same direction occurs for three consecutive trading days), the futures contract will be suspended for one day on D4 trading day.

Article 20 According to the market conditions, the Exchange decides to take corresponding measures for the selection of the futures contract on D4 trading day or D5 trading day.

Compulsory position reduction on D4 trading day.

The following measures shall be taken on D5 trading day:

（1） Improve the trading margin standard;

（2） Adjust the limit range;

（3） Suspend opening and closing positions;

（4） Limit disbursement;

（5） Closing positions within a time limit;

（6） Other risk control measures.

Article 21 Compulsory position reduction refers to all positions of the client (including non members of the futures company, the same below) whose position loss is greater than or equal to a certain proportion of the settlement price on the D4 trading day (the minimum trading margin standard specified in the futures contract) when the Exchange reports the unsettled position closing statement at the closing price on the D3 trading day at the closing price on the D4 trading day, Automatically match the profit position of the futures contract with the up and down limit price on D3 trading day in the prescribed way and method.

Before compulsory position reduction, the two-way position of the same customer in the futures contract is automatically hedged first. After compulsory position reduction, the trading margin standard and limit range of the futures contract on the next trading day shall be subject to the level before adjustment. The economic losses caused by compulsory position reduction shall be borne by the members and their customers.

Article 22 Methods and procedures for compulsory position reduction:

（1） Determination of declared quantity

After the closing of the D3 trading day, if the client has declared in the computer system at the up (down) limit price but has not concluded the transaction, and the unit position loss of the futures contract is greater than or equal to the sum of all declared closing positions at a certain proportion of the settlement price on the D3 trading day (the minimum trading margin standard specified in the futures contract). When the customer's position is less than the quantity reported in the closing order due to automatic hedging of the customer's two-way position, the system will automatically adjust the closing quantity. If the customer is unwilling to close the position according to the above method, the order can be withdrawn before the closing of the market and will not be used as the declared closing entry.

Calculation method of position profit and loss of customer unit:

The profit and loss of the customer's position of the futures contract unit=the sum of the profit and loss of the customer's position of the futures contract (yuan)/the customer's position of the futures contract (hand)

The total profit and loss of the customer's position in the futures contract refers to the total profit and loss of the customer's position in the futures contract calculated according to the difference between the actual transaction price and the settlement price of the day.

（2） Determination of closing range of profitable customers

The speculative positions (including intertemporal arbitrage positions) of the position profits of the client unit calculated according to the above method and the hedging positions of the client unit whose position profits are greater than or equal to twice the price range specified in the futures contract are included in the closing range.

（3） Distribution principles and methods of closing positions

1. Distribution principle of closing position quantity

(1) Within the range of closing positions, according to the size of profits and the difference between speculation and hedging, it is divided into four levels and distributed level by level.

First of all, it shall be allocated to the speculative positions (hereinafter referred to as the speculative positions with the profit of 2 times of the profit) of the unit positions within the range of closing positions that are greater than or equal to the price range specified in the futures contract (calculated at the settlement price on D3 trading day, the same below).

Secondly, it is allocated to speculative positions whose unit position profit is greater than or equal to one time of the price range specified in the futures contract (hereinafter referred to as speculative positions whose profit is one time).

Redistribution to speculative positions with unit position profits greater than or equal to less than one time of the price specified in the futures contract (hereinafter referred to as speculative positions with profits less than one time).

Finally, it is allocated to the hedging position whose unit position profit is greater than or equal to 2 times the price range specified in the contract (hereinafter referred to as the hedging position whose profit is 2 times).

(2) The distribution proportion at all levels above shall be based on the ratio of the declared closing positions (the remaining declared closing positions) to the number of profitable positions that can be closed at all levels.

2. Distribution method and steps of closing position quantity

If the number of speculative positions twice the profit is greater than or equal to the number of positions declared to be closed, the actual number of positions declared to be closed will be allocated to speculative customers twice the profit in proportion to the number of positions declared to be closed.

If the number of speculative positions with twice the profit is less than the number of positions declared to be closed, the number of speculative positions with twice the profit will be allocated to the number of positions declared to be closed according to the ratio between the number of speculative positions with twice the profit and the number of positions declared to be closed; Then distribute the remaining declared closing positions to speculative positions with profits of one time according to the above distribution method; The surplus will be distributed to speculative positions with profits less than one time; If there is any surplus, it will be distributed to the hedging position twice the profit; If there is still any surplus, it will not be distributed. See the annex to the Measures for specific methods and steps.

The allocated closing quantity shall be calculated in "hand", and if it is less than one hand, it shall be calculated as follows. First, the integer part of the closing quantity allocated to each transaction code is allocated, and then the decimal part is "rounded" from the largest to the smallest.

Article 23 If the risk of the futures contract has not been released after the above measures have been taken, the Exchange shall announce that it has entered into an abnormal situation and take risk control measures in accordance with relevant regulations.

Article 24 If a unilateral market appears in a futures contract on the first day of the transaction of a new futures contract, the range of the limit for the rise and fall of the futures contract and the trading margin standard are not subject to the above provisions of this chapter.

If the futures contract appears unilateral market since the middle of the month before the delivery month, the trading margin standard of the futures contract is not subject to the above provisions of this chapter.

If a futures contract has a third consecutive one-way market in the same direction on the last trading day of the delivery month, after the market is closed on that day, the Exchange will, according to the market situation, decide to carry out mandatory position reduction for the futures contract first, and then make paired delivery or direct paired delivery.

Chapter IV Warehouse Limit System

Article 25 The futures trading shall be subject to the position limitation system.

The term "position limitation" refers to the maximum number of speculative positions that members or clients can hold in a certain futures contract calculated unilaterally according to the provisions of the Exchange.

Article 26 The limited position quantity of the futures contract shall be subject to different standards according to the difference of the three periods of the "ordinary month", "the month before the delivery month" and "the delivery month" of the futures contract listed for trading.

Article 27 The unified provisions on the position limitation of futures contracts of various varieties during the three periods of members of futures companies are shown in the following table:

Variety	Unilateral position in a futures contract market (N)	Total unilateral position ratio of futures company members in this contract (M)
Steam coal	N ≥ 1 million hands	M≤25%
	N<1 million hands	Unlimited warehouse

Article 28 The provisions on the position limits of various types of futures contracts of members of non futures companies are shown in the following table:

Variety	Maximum unilateral position of non futures company members (hand)
	Normal month	One month before the delivery month			Delivery month
		Early ten days	Mid day	Late ten days
Steam coal	sixty thousand	sixty thousand	thirty thousand	ten thousand	two thousand

Article 29 The customer's provisions on the position limitation of futures contracts of various varieties are shown in the table below:

Variety	Maximum unilateral position of customer (hand)
	Normal month	One month before the delivery month			Delivery month
					(The warehouse limit for natural person customers is 0)
		Early ten days	Mid day	Late ten days
Steam coal	sixty thousand	sixty thousand	thirty thousand	ten thousand	two thousand

Article 30 Before the closing of the last trading day of the month before the delivery month, members and clients shall adjust their futures contract positions to integral multiples of the minimum delivery unit; From the beginning of the delivery month, the positions of members and customers shall be integral multiples of the minimum delivery unit.

Article 31 The Exchange may adjust the position limit of members of futures companies according to their net assets and business conditions.

Position limit=base × (1+credit coefficient+business coefficient)

Base: refers to the minimum level of the position limit of members of futures companies, which is stipulated by the Exchange.

Credit coefficient: based on the net assets of the members of the futures company of 100 million yuan (at this time, the credit coefficient is 0), on this basis, for every 10 million yuan of net assets increase, the credit coefficient will increase by 0.1, and the maximum value of the credit coefficient should not exceed 0.5;

Business coefficient: The business coefficient of members of futures companies is based on the annual transaction amount of 80 billion yuan and the number of customers of 1000 (the business coefficient is 0 at this time). On this basis, if the annual transaction amount and the number of customers of members of futures companies reach the specified level, their business coefficient will be increased accordingly. The maximum value of business coefficient shall not exceed 0.5. See the following table for details:

grade	Conditions for limited warehouse and increased amount (must be met at the same time)		Increase of limited warehouse coefficient
	Annual transaction amount (C1, 100 million yuan)	Total number of investors (C2)
1	C1≤800	C2≤1000	zero
two	800<C1≤1000	1000<C2≤1200	zero point one zero
three	1000<C1≤1200	1200<C2≤1400	zero point two zero
four	1200<C1≤1400	1400<C2≤1600	zero point three zero
five	1400<C1≤1600	1600<C2≤1800	zero point four zero
six	C1>1600	C2>1800	zero point five zero

Article 32 The position limits of members of futures companies shall be verified by the Exchange once a year.

The members of the futures company must provide the certificate of the amount of net assets at the end of the previous year (the audit report of the accounting firm) to the Exchange before April 15 of the current year. The Exchange shall make statistics on the trading volume of members of futures companies from January 1 to December 31 of the previous year, notify the members of futures companies before April 20 of the current year after verifying the position limit, and publish it; The position limit is applicable to the trading of all kinds of futures contracts from April 21 of the current year to April 20 of the next year (inclusive).

Article 33 If the supporting documents and statistical materials are not provided or the supporting documents and statistical materials provided are invalid at the expiration of the time limit, they shall all be based on the base level.

Article 34 The Exchange shall adjust the position limit after reporting it to the CSRC for filing.

Article 35 The total positions of all clients under the name of a member of a futures company (long positions and short positions are calculated separately, the same below) shall not exceed the position limit of the member.

Article 36 The same customer has opened multiple trading codes at different futures company members, and the total amount of all positions on each trading code shall not exceed the position limit of one customer.

Article 37 The number of positions held by members or clients shall not exceed the position limit prescribed by the Exchange.

If the members or clients of non futures companies exceed the position limit, the Exchange shall implement compulsory position closing in accordance with relevant regulations. Members of futures companies who reach or exceed the position limit shall not open new positions in the same direction.

Chapter V Large Account Reporting System

Article 38 The large account reporting system shall be implemented for futures trading.

If the number of futures contracts held by members or clients reaches more than 80% of the position limit specified by the Exchange (including this number) or the Exchange requires to report, they shall report their funds, positions, etc. to the Exchange. The Exchange may adjust the position reporting level according to the market risk status.

Article 39 In the course of trading, if members or clients meet the conditions for large account reporting, they shall take the initiative to report to the Exchange on the next trading day. If a member or client needs to report again or make a supplementary report after performing the obligation of the first report, the Exchange shall notify the relevant members.

Article 40 Members of futures companies that meet the conditions for large account reporting shall provide the following materials to the Exchange:

（1） Report Form of Large Account of Zhengzhou Commodity Exchange;

（2） Account opening information and daily settlement documents of the top ten customers with positions;

（3） Other materials required by the Exchange.

Article 41 Members or clients of non futures companies that meet the conditions for large account reporting shall provide the Exchange with the following materials:

（1） Report Form of Large Account of Zhengzhou Commodity Exchange;

（2） Account opening information and settlement documents of the day;

（3） Other materials required by the Exchange.

Article 42 Customers who meet the conditions for large account reporting shall provide copies of business licenses (copies) or identity cards (copies) of natural persons according to the nature of units or natural persons.

The members of the futures company shall conduct a preliminary examination of the relevant materials provided by the clients and ensure the authenticity of the report materials.

Chapter VI Compulsory Closing Position System

Article 43 The futures trading shall be subject to the compulsory position closing system.

Compulsory position closing refers to the compulsory measures taken by the Exchange to close the positions of relevant futures contracts held by members and customers in violation of the relevant business regulations of the Exchange.

Article 44 The Exchange has the right to compulsorily close positions if any member or client has any of the following circumstances:

（1） The balance of the settlement reserve is less than zero and cannot be replenished within the specified time;

（2） The position exceeds the position limit (if the members of futures companies reach or exceed the position limit, the relevant provisions in Chapter IV of these Measures shall apply);

（3） Natural person positions entering the delivery month;

（4） Being punished by the Exchange for compulsory position closing due to violation of regulations;

（5） The position should be closed compulsorily according to the emergency measures of the Exchange;

（6） Other positions that should be closed by force.

Article 45 The principles and procedures for compulsory closing positions are as follows:

Before compulsory closing positions, members shall close positions by themselves. Except for the time limit specified by the Exchange, all positions shall be closed before 10:15 after the opening of the market. If a member fails to complete the position closing within the prescribed time limit, the Exchange shall enforce it.

If the position is closed by members themselves, if it falls under the circumstances of Items (1), (2) and (3) of the preceding article, it shall be determined by members themselves, and the results of closing positions can meet the requirements of the Exchange; The Exchange shall determine the case under the circumstances of Items (4), (5) and (6) of the preceding article.

The compulsory closing of positions by the Exchange shall be carried out according to the following procedures:

（1） The Exchange shall carry out compulsory closing positions according to the closing list provided by members.

（2） If a member does not provide a list of closing positions, which belongs to Item (1) of the preceding article, the total positions of futures contracts after the closing of the market on the previous trading day shall be ranked from large to small. First, the futures contracts with large positions shall be selected as the futures contracts for compulsory closing positions, and then the net position losses of the futures contracts of the member customers shall be ranked from large to small. If multiple members need to forcibly close their positions, the members who need to increase the margin shall be forced to close their positions first in the order of increasing the margin.

（3） In the case of Item (2) of the preceding article, the members or clients of non futures companies shall be forced to close their positions in accordance with the order of excess positions from large to small.

（4） If a member does not provide a closing list, which falls under Item (3) of the preceding article, the position of natural person futures contracts shall be closed by force in the descending order after the closing of the previous trading day.

（5） If a member does not provide a list of closing positions, and the position of compulsory closing positions falls under items (4), (5) and (6) of the preceding article, the Exchange shall determine the position of compulsory closing positions according to the specific conditions of the members and customers involved.

（6） If members meet the conditions specified in Items (1), (2) and (3) of the preceding article at the same time, the Exchange shall first determine the position of compulsory closing positions according to Items (2) and (3), and then determine the position of compulsory closing positions according to Item (1).

If the above principles and procedures cannot be met due to market reasons, the Exchange has the right to choose an opportunity to forcibly close positions.

Article 46 The Exchange shall notify the members and the members shall notify the clients when implementing the compulsory position closing.

In the case of items (1) and (2) of Article 44, the notification shall be based on the settlement results provided by the Exchange; In case of the circumstances specified in Items (3), (4), (5) and (6) of Article 44, the Exchange shall issue the Notice of Compulsory Closing Positions to relevant members.

Article 47 If a member fails to close the position on his own within the prescribed time, the Exchange shall directly carry out compulsory closing of the remaining position against the member at the market price in accordance with the principles determined in Article 45.

After the completion of compulsory closing positions, the Exchange shall send the results of compulsory closing positions to members along with the trading records of the day, and archive the records of compulsory closing positions.

The price of forced closing positions is formed through market transactions.

Article 48 If it is impossible to complete all the compulsory closing positions on the same day due to the fluctuation limit or other market reasons, the remaining positions can be postponed to the next trading day to continue to implement the compulsory closing positions until the closing positions are completed.

Article 49 If the compulsory closing of positions can only be delayed due to the price limit or other market reasons, the losses incurred shall still be borne by the members or clients; If the closing position is not completed, the position holder shall continue to bear the position responsibility or delivery obligation.

Article 50 With the exception of Item (4) of Article 44, the profits or losses arising from the compulsory position closing shall belong to the holder. If the position holder is a customer, the member of the customer shall first bear the losses incurred from the forced closing position, and then recover the losses from the customer.

For the compulsory position closing implemented in Item (4) of Article 44 of these Measures, the losses shall be borne by the holder, and the profits shall be recorded in the non operating income of the Exchange.

Chapter VII Risk Warning System

Article 51 A risk warning system shall be implemented for futures trading.

When the Exchange deems it necessary, it may separately or simultaneously take measures such as requiring reports, reminding by conversation, and issuing risk reminder letters to warn and resolve risks.  

Article 52 Under any of the following circumstances, the Exchange may talk to the designated members' senior executives or clients to remind them of risks, or require members or clients to report the situation:

（1） Abnormal transactions of members or clients;  

（2） Abnormal positions of members or customers;  

（3） Abnormal member funds;  

（4） Members or customers are suspected of violating the rules or breaching the contract;  

（5） The Exchange receives complaints involving members or clients;  

（6） Members involved in law enforcement investigations;  

（7） Other circumstances recognized by the Exchange.  

If the exchange reminds by telephone, it shall keep the telephone recording; In case of face-to-face conversation, the interview record shall be kept.

If the Exchange requires members or clients to report the situation, the reporting method and content shall refer to the large account reporting system.  

Article 53 Where a member or client is suspected of violating the rules and the trading position is at great risk, the Exchange may issue a written risk reminder letter to the member or client.  

Article 54 In any of the following circumstances, the Exchange may issue a risk reminder letter to all or part of its members and clients:

（1） The futures price is abnormal;  

（2） There is a large gap between the futures price and the spot price;  

（3） There is a big gap between the domestic futures price and the international market price;  

（4） Other abnormalities recognized by the Exchange.

Supplementary Provisions

Article 55 In case of violation of the provisions of these Measures, the Exchange shall deal with it in accordance with the relevant provisions of the Measures for Handling Violations of Zhengzhou Commodity Exchange.

Article 56 Zhengzhou Commodity Exchange reserves the right to interpret these Measures.

Article 57 These Measures shall come into force as of September 16, 2013.