INE:Requesting Public Comments on the Designated Depository Banks Management Rules of the Shanghai International Energy Exchange

   According to the Regulation on the Administration of Futures Trading, Measures for the Administration of Futures Exchanges, Administrative Measures for Domestic Securities and Futures Investments by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors and other applicable rules and regulations, INE proposes to revise its Designated Depository Banks Management Rules and is requesting public comments on these rules.

Please send your opinions and advices on revising the above rules to INE in writing or through emails before February 1, 2021. Your feedback also indicates that you agree to use your contact information and materials for use by the INE and only for requesting comments described in this Notice.

 

Contact:

Email: ine.advice@ine.cn

Fax: +86-21-2076-7686

Tel.: +86-21-6840-0000 

Postal address: the Shanghai International Energy Exchange, 500 Pudian Road, Pudong New District, Shanghai,200122 P.R.C.

 

Appendix:

1. Revision Explanation

2. Comparative Table

3. Designated Depository Banks Management Rules of the Shanghai International Energy Exchange (for Public Consultation)

Disclaimer:

The rules of the Shanghai International Energy Exchange are made in Chinese. The English version of such rules is for reference only and shall have no legal effect.

Revision Explanation

 

To introduce the qualified foreign institutional investors ("QFII") and RMB qualified foreign institutional investors ("RQFII") involving in domestic commodity futures market, ensure the implementation of the open policy, INE plans to revise the “Designated Depository Banks Management Rules of the Shanghai International Energy Exchange”(hereinafter referred to as the" Designated Depository Bank Management Rules "), to optimize the design of the Designated Depository Bank system, satisfy the demands of QFII and RQFII involving in the commodity markets.

The main amendments are described as follows:

I. Contents to be revised

It is proposed to add the expression “A Qualified Foreign Institutional Investor (QFII) or RMB Qualified Foreign Institutional Investor (RQFII) custodian bank which applies to conduct futures margin depository business for the QFII or RQFII it provides custodian for shall meet items 2 to 10 of Article 5.” as the third paragraph of the article 4.

II. Reasons for revision

To introduce the QFII and RQFII involving in domestic commodity futures market, promote the open policy in the futures market and simultaneously realize the internationality of multiple products, INE plans to revise the Designated Depository Bank management rules, specifying that the application to be as the Designated Depository Bank of INE submitted by custodian banks of QFII, RQFII, will be exempted from requirement such as the registered capital, total assets, number of branches etc. But these banks can only conduct futures margin depository business for QFII and RQFII it provides custodian service for.

Mark-up Version	Revised Version
Designated Depository Banks Management Rules of the Shanghai International Energy Exchange
Article 4 The futures margin depository business with the Exchange is classified into margin depository business for domestic Clients and margin depository business for overseas Clients. Margin depository business for domestic Clients refers to the margin depository business related to Members and their domestic Clients, while margin depository business for overseas Clients refers to the margin depository business related to Overseas Special Participants (hereinafter referred to as “OSPs”), Overseas Intermediaries and overseas Clients. A Qualified Foreign Institutional Investor (QFII) or RMB Qualified Foreign Institutional Investor (RQFII) custodian bank which applies to conduct futures margin depository business for the QFII or RQFII it provides custodian for shall meet items 2 to 10 of Article 5.	Article 4 The futures margin depository business with the Exchange is classified into margin depository business for domestic Clients and margin depository business for overseas Clients. Margin depository business for domestic Clients refers to the margin depository business related to Members and their domestic Clients, while margin depository business for overseas Clients refers to the margin depository business related to Overseas Special Participants (hereinafter referred to as “OSPs”), Overseas Intermediaries and overseas Clients. A Qualified Foreign Institutional Investor (QFII) or RMB Qualified Foreign Institutional Investor (RQFII) custodian bank which applies to conduct futures margin depository business for the QFII or RQFII it provides custodian for shall meet items 2 to 10 of Article 5.
Article 57 These Rules shall be effective as of.MM DD, YYYY.	Article 57 These Rules shall be effective as of MM DD, YYYY.

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