Measures of Management of Warehouse Receipts on Par of Dalian Commodity Exchange

Measures of Management of Warehouse Receipts On Par of Dalian Commodity Exchange

Chapter I General Provisions

Article 1 These Measures are formulated pursuant to the Trading Rules of Dalian Commodity Exchange for the purposes of ensuring the normally carrying-out of the futures delivery business of Dalian Commodity Exchange (the "Exchange") and strengthening the management of the warehouse receipts on par.

Article 2 The generation, circulation and deregistration and other business with respect to the warehouse receipts on par of the commodity futures contracts listed in the Exchange shall comply with these “Measures”.

Article 3 The Exchange shall set up an electronic warehouse receipt system to manage any and all business related to the warehouse receipts on par herein. The Exchange, Members, oversea brokers, designated delivery warehouses, designated quality testing agencies, relevant banks and other warehouse receipt business participants shall handle any and all business related to the warehouse receipts on par through the electronic warehouse receipt system.

Article 4 The Exchange, Members, overseas brokers, clients, designated delivery warehouses, designated quality testing agencies, relevant banks and other warehouse receipt business participants shall follow these Measures to handle any and all business related to the warehouse receipts on par.

Chapter II General Rules

Article 5 The warehouse receipt on par shall refer to the physicals pick-up document which is registered by the Exchange after an application for registration is submitted by the Exchange’s designated delivery warehouse subject to the procedures prescribed by the Exchange and which satisfies the quality standards prescribed by the futures contract.

The warehouse receipts on par shall be divided into the warehouse receipts on par of the warehouse and the warehouse receipts on par of the factory warehouse on the basis of the storage site. The warehouse receipts on par shall be divided into the bonded warehouse receipts on par and the duty-paid warehouse receipts on par on the basis of the duty-paid status. With respect to the delivery in which any bonded warehouse receipt on par participates, the applicable provisions of the Detailed Rules for Implementation of Bonded Delivery of Dalian Commodity Exchange shall apply.

Article 6 A warehouse receipt on par shall take effect as of its registration date at the Exchange. After being registered at the Exchange, a warehouse receipt on par may be used for delivery, trading, transfer, pick-up and offset. No transfer or offset shall be made with respect to the warehouse receipt on par of the egg. With respect to the product of No. 2 soybean, the warehouse receipt on par shall not be offset. When the warehouse receipt on par is used for delivery, transaction or transfer, if the goods corresponding to it are imported soybean, the corresponding inspection and quarantine certificate or inspection and quarantine treatment notice (hereinafter collectively referred to as “inspection and quarantine certification material”) of the inbound goods shall also be provided.

Article 7 A registered warehouse receipt on par shall exist in the electronic form in the electronic warehouse receipt system.

The Exchange may print the certificate of holding the warehouse receipts on par as requested by a Member. The certificate of holding the warehouse receipts on par shall represent the quantity of the negotiable warehouse receipts on par at the printing time. After the printing of the certificate of holding the warehouse receipts on par, the corresponding warehouse receipts on par in the electronic warehouse receipt system shall be frozen. The certificates of holding the warehouse receipts on par as held by a Member shall be custodies by a specially-assigned person and shall not be obliterated or falsified. In case of any damage or loss, the Member shall timely handle the loss-report or re-handling formalities at the Exchange.

A Member shall return to the Exchange the original certificate of holding the warehouse receipts on par when it handles such warehouse receipt business as the delivery, trading, transfer, margin or deregistration of the warehouse receipts on par corresponding to the certificate of holding the warehouse receipts on par or applies for printing a new certificate of holding the warehouse receipts on par.

Article 8 The use of the warehouse receipts on par as margin shall be subject to the applicable provisions of the Detailed Settlement Rules of Dalian Commodity Exchange.

Article 9 The name of the sub-warehouse shall be marked on the warehouse receipt on par of the group delivery warehouse. The sub-warehouse shall handle such delivery businesses as delivery forecast, delivery of goods into the warehouse, quality testing, registration and deregistration of warehouse receipts on par, and delivery of goods out of the warehouse, and the group delivery warehouse shall make a check.

Chapter III Generation of Warehouse Receipts on Par

Section I Warehouse’s Warehouse Receipts on Par

Article 10 All commodity futures contracts listed in the Exchange may be registered as the warehouse receipts on par of the warehouse.

Article 11The vendor must handle the delivery forecast at the Exchange through a Member prior to the consignment by the vendor of the goods to the designated delivery warehouse. The Exchange shall make reply within three (3) trading days and arrange for the designated delivery warehouse under the principle of “distribution by choosing the best under the overall arrangement”. The vendor must consign the goods to the designated delivery warehouse arranged for by the Exchange. No commodities of which the delivery forecast has not been handled can be used for delivery, except otherwise prescribed by the Exchange.

With respect to the product of No. 2 soybean, the imported soybean in the warehouse shall be delivered with the change from the purpose of raw material for processing to the purpose of futures delivery, with no need to handle the delivery forecast.

No handling of delivery forecast may be required with respect to the successive delivery of the already delivered commodities at the same designated delivery warehouse.

Article 12 A Member shall pay the delivery forecast margins when it handles the delivery forecast. The delivery forecast margins for any and all products shall be prescribed in the applicable provisions of the Detailed Delivery Rules of Dalian Commodity Exchange.

Article 13 The delivery forecast shall be effective for a period of thirty (30) calendar days as of the handling date. Within the effective period, the delivery forecast margins will be refunded after the commodities are delivered into the warehouse in case the delivery forecast is implemented; or will be refunded as per the actual arrival quantity in case part thereof is implemented; or will not be refunded in case no delivery forecast is implemented within the effective period, and the delivery forecast margins not refunded shall be confiscated to the corresponding designated delivery warehouse.

Article 14 After the delivery commodities are delivered into the warehouse, the Member shall handle the refunding of the delivery forecast margins through the electronic warehouse receipt system.

Article 15 In case the vendor fails to consign goods to the designated delivery warehouse arranged for by the Exchange, it must re-handle the delivery forecast at the Exchange, and such goods must be re-consigned to the designated delivery warehouse for delivery as newly arranged for by the Exchange; and any and all costs and consequences shall be solely borne by the vendor.

Article 16 The commodities delivered into the warehouse shall go through the testing, measurement and/or checking in quality, quantity and/or weight, to be specifically provided in the applicable provisions of the Detailed Delivery Rules of Dalian Commodity Exchange. During the delivery-into-warehouse course, in case the packaging fails to satisfy the applicable provisions of the Detailed Delivery Rules of Dalian Commodity Exchange, the designated delivery warehouse shall refuse receipt thereof and shall timely notify the vendor.

In case the commodities delivered into the warehouse are tested or inspected to be conforming in quality, quantity or weighting, the designated delivery warehouse may submit the application for registration of the warehouse receipt on par through the electronic warehouse receipt on par after its full settlement of the relevant costs with the Member and/or clients.

After the application for a warehouse receipt on par confirmed by the Member, the Exchange shall register the warehouse receipt on par.

Article 17 In case the vendor requests and authorizes the disposal of the commodities which fail to satisfy the futures standards, the designated delivery warehouse may carry out the disposal thereof on the basis of its own adjustment capacity and the actual situation of such commodities, with the disposal costs being borne by the vendor.

Section II Factory Warehouse Receipts on Par

Article 18 The No.2 soybean, soybean meal, the soybean oil, the RBD palm olein, the coke, the coking coal, the iron ore, the egg, the blockboard and the corn starch may be registered as the warehouse receipt on par of the factory warehouse.

Article 19 After the full settlement of the payments and other costs by the Member or client with the factory warehouse, the factory warehouse receipt may submit the application for registration of the warehouse receipt on par through the electronic warehouse receipt system.

The Exchange’s registration shall be subject to the bank’s performance guarantee approved by the Exchange or other payment security method approved by the Exchange in addition to the Warehouse Receipt on Par Registration Application Form issued by the factory warehouse.

After the application for a warehouse receipt on par confirmed by the Member, and after the factory warehouse has submitted the relevant security to the Exchange, the Exchange shall register the warehouse receipt on par.

Article 20 In the event of any wider fluctuation in the market value of the commodities, the Exchange may require, on the basis of the market changes, the factory warehouse to adjust the amount of the bank’s performance guarantee or other payment security method.

Article 21 The maximum quantity of the warehouse receipts on par of a single factory warehouse shall refer to the maximum quantity of the warehouse receipts on par which are currently registered but have not been deregistered.

The determination and adjustment of the maximum quantity of the warehouse receipts on par of the factory warehouse shall be approved and published by the Exchange.

Chapter IV Circulation of Warehouse Receipts on Par

Article 22 The circulation of the warehouse receipt on par shall refer to the physical delivery with respect to the contractual performance at the Exchange through the warehouse receipt on par, trading of the warehouse receipt on par, and the transfer of the warehouse receipt on par outside the Exchange. The trading or transfer of the warehouse receipts on par of the egg shall be prohibited. With respect to the product of No. 2 soybean, when the warehouse receipt on par is used for delivery, transaction or transfer, if the goods corresponding to it are imported soybean, the corresponding inspection and quarantine certification material shall also be provided.

Article 23 The physical delivery of the warehouse receipts on par shall be subject to the Detailed Delivery Rules of Dalian Commodity Exchange and the Detailed Rules for Implementation of Bonded Delivery of Dalian Commodity Exchange.

Article 24 The measures for organizing and implementing the trading of the warehouse receipts on par shall be separately formulated and promulgated by the Exchange.

Article 25 The transfer of the warehouse receipts on par shall require the submission of an application for transfer thereof and the handling through the Member of the transfer formalities at the Exchange; and the relevant costs shall be fully settled at the same time. Any and all consequences arising out of or in connection with the transfer of the warehouse receipts on par without the handling of the transfer formalities at the Exchange shall be solely borne by the holder of such warehouse receipts on par.

The parties of the transaction may handle on their own or entrust the Exchange to handle the receipt and payment of the payments of the transfer of warehouse receipts on par. If the Exchange is entrusted to handle the business, the parties of the transaction shall submit an entrustment application to the Exchange through a Member, and the payment of the payments and the circulation of the VAT special invoice shall be handled as per the relevant provisions of the Detailed Settlement Rules of Dalian Commodity Exchange. The transfer fee for the warehouse receipts on par shall be published separately by the Exchange. The transfer of bonded warehouse receipts on par of iron ore shall be implemented as per the relevant provisions of the Detailed Rules for Implementation of Bonded Delivery of Dalian Commodity Exchange and the Detailed Settlement Rules of Dalian Commodity Exchange.

Chapter V Deregistration of Warehouse’s Warehouse Receipts on Par

Section I Warehouse Receipts On Par of the Warehouse

Article 26 The deregistration of the warehouse receipts on par shall refer to the process that the lawful holder of the warehouse receipts on par handle the formalities at the Exchange of withdrawing from circulation of such warehouse receipts on par.

Article 27Any deregistration by the holder of the warehouse receipts on par of such warehouse receipts on par shall be carried out through the Member.

Article 28In case the Member applies for deregistration of the warehouse receipts on par, the Exchange shall deregister the applicable warehouse receipts on par, fully settle the relevant costs and issue the Delivery Advice.

In case the Member applies for deregistration of the warehouse receipts on par through the electronic warehouse receipt system, the Exchange shall deregister the applicable warehouse receipts on par, fully settle the relevant costs and issue the delivery password to the Member through the electronic warehouse receipt system and the delivery notice to the Member and the designated delivery warehouse.

With respect to the deregistration of the warehouse receipts on par, the applicable provisions of the Detailed Rules for Implementation of Bonded Delivery of Dalian Commodity Exchange shall apply.

Article 29 Upon pick-up thereof, the vendor must produce to the designated delivery warehouse the pick-up person’s identity card, the certification issued by his or her employer and the Delivery Advice or delivery password, and shall fully settle the relevant costs with the warehouse incurred from the day following the deregistration of such warehouse receipt on par to the pick-up date.

Article 30The vendor shall pick up the commodities within the period prescribed by the Exchange. In case the commodities fail to be picked up within the said period, the corresponding futures commodities under the warehouse receipts on par shall be correspondingly transformed to be the physicals, and the designated delivery warehouse does not warrant that the qualities of all commodities satisfy the futures standards.

After the relevant futures commodities under the warehouse receipts on par have been transformed to be physicals, the re-generation of the warehouse receipts on par shall require the retesting as per the futures contract standards and necessitate the handling prescribed in Section I of Chapter III. After the product of the eggs has been transformed to be physicals, the re-generation of the warehouse receipts on par shall be prohibited.

Article 31The warehouse receipts on par shall be deregistered within the periods prescribed by the Exchange, with the periods for deregistration of all types of the warehouse receipts on par to be specifically provided in the Detailed Delivery Rules of Dalian Commodity Exchange.

Section II Warehouse Receipts On Par of the Factory Warehouse

Article 32 The deregistration of the warehouse receipts on par shall refer to the process that the lawful holder of the warehouse receipts on par handle the formalities at the Exchange of withdrawing from circulation of such warehouse receipts on par.

Article 33 Any deregistration by the holder of the warehouse receipts on par of such warehouse receipts on par shall be carried out through the Member.

Article 34In case the Member applies for deregistration of the warehouse receipts on par at the Exchange, the Exchange shall deregister the applicable warehouse receipts on par, fully settle the relevant costs and issue the Delivery Advice.

In case the Member applies for deregistration of the warehouse receipts on par through the electronic warehouse receipt system, the Exchange shall deregister the corresponding warehouse receipts on par, fully settle the relevant costs and issue the delivery password to the Member through the electronic warehouse receipt system and the delivery notice to the Member and the factory warehouse.

Article 35 Upon pick-up thereof, the vendor must produce to the factory warehouse the pick-up person’s identity card, the certification issued by his or her employer, the Delivery Advice or delivery password, and shall fully settle the relevant costs with the factory warehouse incurred from the day following the deregistration of such warehouse receipt on par to the pick-up date.