Notice of Amending Certain Clauses of the Trading Rules of the Shenzhen Stock Exchange involving Trading Participants
· Document Number：No. 291  of the Shenzhen Stock Exchange
· Area of Law： Securities
· Level of Authority： Industry Regulations
· Date issued：09-30-2016
· Effective Date：01-01-2016
· Status： Effective
· Issuing Authority： Shenzhen Stock Exchange
Notice of the Shenzhen Stock Exchange on Amending Certain Clauses of the Trading Rules of the Shenzhen Stock Exchange involving Trading Participants
(No. 291  of the Shenzhen Stock Exchange)
All market participants:
To assist the implementation of Shenzhen-Hong Kong Stock Connect, with the approval of the China Securities Regulatory Commission, the Shenzhen Stock Exchange (hereinafter referred to as the “SZSE”) has amended certain clauses of the Trading Rules of the Shenzhen Stock Exchange (2016 Revision) involving trading participants as follows:
I. Amending the provisions on the scope of trading participants
Article 2.2.1 is amended to read: “To trade in securities on the SZSE, members and institutions recognized by the SZSE shall apply to the SZSE for trading privilege, and become trading participants of the SZSE.
Trading participants shall trade in securities through the business units opened with the SZSE upon application, and comply with these Rules and relevant provisions of other business rules of the SZSE on trading in securities.”
II. Additions on trading orders sent by trading participants
1. Article 3.1.2 is amended to read: “Trading participants shall send buy or sell orders to the SZSE's trading mainframe through their order routing systems, and execute trades according to these Rules; and the trading records shall be sent by the SZSE to trading participants.”
2. Article 3.1.3 is amended to read: “Trading participants shall, according to the relevant provisions, properly keep the records of instructions from clients and order routing activities.”
3. Article 3.3.1 is amended to read: “The SZSE accepts auction orders routed by trading participants from 9:15 to 9:25, 9:30 to 11:30, and 13:00 to 15:00 on each trading day.
The SZSE's trading mainframe will not accept cancellation of any order during the call auction from 9:20 to 9:25 and from 14:57 to 15:00 on each trading day. During other trading time, unexecuted orders may be cancelled.
The SZSE may adjust the time of accepting orders routed by members.”
4. Article 3.3.3 is amended to read: “Except as otherwise specified, the SZSE accepts limit orders and market orders routed by trading participants.”
5. Article 3.5.6 is amended to read: “The clearing and settlement of trading in securities shall be conducted according to the provisions issued by the depository and clearing institution designated by the SZSE.”
6. Article 5.2.4 is amended to read: “The real-time quotations shall be transmitted through the communication system as permitted by the SZSE, and trading participants shall use the real-time quotations within the extent as permitted by the SZSE.”
III. Additions on the oversight of trading participants
1. Article 6.6 is amended to read: “The SZSE may conduct on-site or off-site investigation of the matters under priority monitoring in securities trading, and members and their securities brokerage branches, other trading participants, and investors shall cooperate.”
2. Article 6.7 is amended to read: “When conducting on-site or off-site investigation, the SZSE may, as needed, require relevant members and their securities brokerage branches, other trading participants, and investors to provide the following documents and materials in a timely, accurate, and complete manner:
(1) Investors' account opening information, power of attorney, cash account information, and trading information on relevant securities accounts, among others.
(2) A statement on the actual controllers and operators of the relevant securities accounts or fund accounts, the fund sources, and whether there are any affiliations among the relevant accounts, among others.
(3) An explanation on the matters under priority monitoring in securities trading.
(4) Other materials relating to the matters under priority monitoring of the SZSE.”
3. Article 8.1 is amended to read: “Where any trading disputes arise between members or between members and their clients, the members involved and other trading participants shall record the relevant information for inspection by the SZSE. If the trading disputes affect the normal trading activities, the members and other trading participants shall report to the SZSE in a timely manner.”
4. Article 8.2 is amended to read: “Where any disputes arise between trading participants or between members and their clients, the SZSE may provide necessary trading data according to the relevant provisions.”
5. Article 9.2 is amended to read: “Trading participants shall, according to the relevant provisions, pay trading fees and other relevant charges to the SZSE; and members shall also, according to the relevant provisions, pay membership fees to the SZSE.”
6. Article 10.1 is amended to read: “Disciplinary action shall be taken by the SZSE in accordance with the Member Management Rules of the Shenzhen Stock Exchange and other relevant provisions against trading participants that violate these Rules.”
This Notice shall come into force on the date of issuance. The Trading Rules of the Shenzhen Stock Exchange (2016 Revision), as amended according to this Notice, shall be reissued.
Annex: Trading Rules of the Shenzhen Stock Exchange (Amended in September 2016)
Shenzhen Stock Exchange
September 30, 2016