The 9 Abnormal Trading Behaviors Of Stock Index Futures Are Defined By CICC.

In October 22, 2010,

Since the listing of stock index futures, CICC has strictly implemented the front-line regulatory duties in accordance with the requirements of the CSRC's "high standards, stable starting and strict supervision", and actively explored regulatory innovation.

On the whole, stock index futures market operates strictly, strictly regulated, investors participate rationally, and the market runs smoothly and healthily.

In order to further consolidate and improve the standard operation level of stock index futures market, CICC recently

Abnormal behavior in stock index futures trading is mainly reflected in the abnormal aspects such as paction entrustment, price and frequency, such as too frequent withdrawal of declaration and excessive deviation of declaration price.

Compared with irregularities and illegality in futures trading, abnormal trading behavior is relatively mild, and usually does not reach the level of violation of national laws and regulations.

Under normal circumstances, the abnormal trading behavior also does not violate the business rules of the exchange, such as the "handling method of violation of contract violation", or although it is suspected of violating the "handling method of violation and breach of contract" of the exchange, it belongs to a relatively minor case.

Nevertheless, considering that some abnormal pactions may be used as a means of breaking the law or breaking the law, if they are not guided and stopped in time, they may develop into serious violations and may even develop into illegal acts such as price manipulation and so on.

In accordance with the requirements of the China Securities Regulatory Commission on strengthening supervision, preventing risks and ensuring the standardized development of the stock index futures market, CICC tries to shift the regulatory gateway from the regulation of illegal behavior to the regulation of abnormal trading behavior, and further tighten the regulatory standards for futures trading activities, thus giving full play to the advantages of the exchange line supervision, reducing and avoiding the harm of illegal acts and illegal acts to the market.

In the case of abnormal pactions, the stock exchange takes timely regulatory measures to stifle the signs of irregularities. For the acts that constitute a violation of the rules governing the handling of violations and disagreements of the exchanges, the exchange shall seriously deal with it, take disciplinary measures, and investigate the responsibilities of the relevant agents and agents; if the act is suspected of violating the laws and regulations of the state, the exchange will submit the case to the CSRC for investigation.

At the same time, through the implementation of regulatory barriers to move forward, strengthen the management responsibilities of members to customer pactions, and form a joint effort to jointly build a self regulatory system of "early detection, early arrest and early treatment", to maintain normal market order and protect the legitimate rights and interests of investors.

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The fifth rule of futures abnormal trading monitoring (Trial Implementation) explicitly defines 9 situations as abnormal trading behavior of stock index futures.

The regulations are as follows:

(1) to buy or sell oneself on large or numerous occasions;

(two) a large number of clients who are entrusted or authorized to engage in pactions between the same organization or the same person will trade with each other for a large number or many times.

(three) a large number of declarations, continuous declarations, intensive declarations, or declaration prices deviating significantly from the latest paction prices at the time of declaration may affect futures trading prices.

(four) a large number or repeated declarations and revocation declarations may affect futures trading prices or mislead other clients to conduct futures trading.

(five) excessive number of withdrawals within a day;

(six) frequent turnover or intra day trading is larger.

(seven) two or more than two paction codes suspected of having actual control relations merge with positions exceeding the limit of stock positions.

(eight) a large number or many times of high buying and low selling pactions;

(nine) automatic ordering and placing orders through computer programs affect the system security or normal trading order.

The contents of the guidelines are mainly embodied in the following three aspects:

First, define the main form of abnormal trading behavior.

《指引》第五條列舉了九種較為典型的異常交易行為，其中第(一)至(五)項(xiàng)規(guī)定的異常交易行為，主要是防范異常交易行為發(fā)展為洗售操縱、約定交易操縱、連續(xù)交易操縱和虛假申報(bào)操縱等典型的市場操縱行為;第(六)項(xiàng)“日內(nèi)頻繁進(jìn)行回轉(zhuǎn)交易或者日內(nèi)開倉交易量較大”的異常交易行為，是為了防范過度投機(jī)這種非理性炒作行為;第(七)項(xiàng)“兩個或者兩個以上涉嫌存在實(shí)際控制關(guān)系的交易編碼合并持倉超過交易所持倉限額規(guī)定”的異常交易行為，是為了防范分倉等規(guī)避交易所監(jiān)管的行為;第(八)項(xiàng)“大量或者多次進(jìn)行高買低賣交易”的異常交易行為，是為了防范以高買低賣的方式進(jìn)行利益輸送;第(九)項(xiàng)“通過計(jì)算機(jī)程序自動批量下單、快速下單”中的異常交易行為，是為了防范以程序化交易等為手段影響交易所系統(tǒng)安全或者正常交易秩序。

Compared with the existing "breach of contract handling procedures", the guidelines tighten regulatory standards for futures trading.

The guideline focuses on the form of abnormal paction behavior from the perspective of objective behavior description, and simplifies the subjective elements and result elements of violations in the administrative measures for breach of contract, so as to facilitate the timely identification and management of abnormal pactions.

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Second, we should further clarify the legal compliance management responsibilities of members and the obligation to cooperate with the supervision and regulation of exchanges.

The front-line regulation of futures trading is the basic responsibility of the exchange. As an exchange member, Futures Company is an integral part of the self regulatory system of exchanges.

It is helpful for members to manage their customers' trading behavior and improve their self-management effect by managing their customers' trading behavior.

The guidelines put forward specific requirements for members to carry out lawful and compliance management of customer pactions and cooperate with the exchange market supervision, requiring members to guide clients to participate in stock index futures trading, pay close attention to customer pactions and actively prevent and timely issue abnormal pactions of customers. When customers have abnormal trading behavior, they should timely remind, dissuade and stop, report promptly to the exchange, actively and effectively cooperate with the market supervision of the exchange, timely and accurately convey the information and written decisions of the exchange, and jointly maintain the normal order of the futures market.

Third, we should further enrich the regulation measures of abnormal pactions and strengthen the supervision of abnormal pactions.

In order to improve the pertinence of regulatory measures and enhance the effectiveness of supervision, the guidelines strengthen the supervision measures of the exchange to customers and members.

The guidelines stipulate that if an abnormal paction occurs, the exchange may take telephone reminders, request reports, request for written commitment, list of regulatory concerns, interviews and other measures. If the circumstances are serious, the exchange may take corresponding regulatory measures or disciplinary measures according to the regulations of the China Financial Futures Exchange and the China Financial Futures Exchange's handling methods for violating the violation of rules and regulations, and the exchange shall submit the case to the CSRC for investigation on suspicion of violating laws, regulations and rules.

If a member fails to fulfill his duties and fulfil his client's management responsibilities and cooperative supervision obligations, the exchange may order him to rectify the matter and take corresponding supervisory measures or disciplinary measures according to the "handling method of violation of contract and breach of contract" and "member's management measures", and submit a self regulatory recommendation letter to the CSRC to reduce the rating of membership.

The director of CICC said that the guidelines are an integral part of the business rules system of the exchange. The issuance of the guidelines has refined the regulatory standards and improved the business rules system of the exchange, thus further improving the pparency and institutionalization of the exchange supervision.

Through the timely discovery, timely suppression and timely handling of abnormal pactions, by mobilizing the initiative of members in managing customer pactions, it will help to stifle illegal activities in the bud stage, maintain normal market order and protect the legitimate rights and interests of investors.

Next, CICC will strengthen training and guidance for members, strengthen supervision and regulation of abnormal trading behavior, firmly establish a strong regulatory posture, and strive to build a standardized, pparent and strict stock index futures market.