CHINA: Shenzhen Stock Exchange Amends Trading Participants Rules

Monday October 10 2016

In order to support implementation of the Shenzhen-Hong Kong Stock Connect Program, Shenzhen Stock Exchange has amended articles regarding trading participants in the Trading Rules of Shenzhen Stock Exchange (2016). Detailed revisions include:

Adjustment of Definition of Trading Participants

In order for participants to be recognised by the Exchange, they shall be required to apply for trade authorisation and be recognised as trading participants of the Exchange. Participants will be required to observe the rules of the Exchange.

Supplementing Provisions on Trading Participants’ Order Submissions

Paragraph 3.1.2 has been amended as follows:

• Trading participants shall submit buy or sell orders to the Exchange trading system through the order routing system. Orders shall be executed in accordance with these Rules. Trading records are sent to trading participants by the Exchange.

Paragraph 3.3.1 has been amended as follows:

• The Exchange’s trading system accepts auction orders routed by trading participants from 09:15 – 09:25, 09:30 – 11:30 and 13:00 – 15:00 on each trading day.
• The Exchange’s trading system will not accept cancellation of any auction orders from 09:20 – 09:25 and 14:57 – 15:00 on each trading day. During other trading hours, unexecuted orders can be cancelled. The Exchange may adjust time frames for accepting orders.

Paragraph 3.3.3 has been amended as:

• The Exchange accepts limit orders and market orders from trading participants.

Supplementing Provisions on Regulatory Matters Regarding Trading Participants

Paragraph 6.6 has been amended as:

• The Exchange may conduct on-site or off-site investigations of the matters that occur in the trading of securities and need to be put under intense monitoring.  Members, their brokerage branches, other trading participants and investors shall coordinate with the Exchange in the latter’s investigations.

Paragraph 8.2 has been amended as:

• When disputes arise between trading participants, between members or between members and their clients, the Exchange may provide necessary trading data pursuant to relevant regulations.

Paragraph 10.1 has been amended as:

• Where a member violates these Rules, the Exchange will impose disciplinary sanctions on the trading participant in accordance with the Membership Management Rules of Shenzhen Stock Exchange.

These rules take effect on day of promulgation, being 10^th October 2016.

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