Measures for Designated Delivery Warehouse Management of Dalian Commodity Exchange

Transcription

1 Measures for Designated Delivery Warehouse Management of Dalian Commodity Exchange Chapter 1 General Provisions 1. Subject to Contract Law of the People s Republic of China and Trading Rules of Dalian Commodity Exchange, these Measures are enacted for purpose of enhancing the management of Delivery Warehouses that are designated by Dalian Commodity Exchange (the Exchange ), regulating delivering activities and ensuring orderly delivering operations. 2. A Designated Delivery Warehouse is a designated delivery point approved by and registered with the Exchange for physical delivery of futures contracts. 3. The Exchange shall regulate Designated Delivery Warehouses in accordance with these Measures, the Designated Delivery Warehouse and its staff must comply with these Measures. Chapter 2 Application and Approval 4. The following requirements shall be meet for applying for Designated Delivery Warehouse: 4.1. to obtain a business license issued by the administration for industry and commerce; 4.2. to satisfy the requirements set forth by the Exchange for fix assets and registered capitals; 4.3. to be in good financial status and with strong anti-risk ability; 4.4. to enjoy a well-received business reputation and well-established systems of storage administration; to have no record of serious violation of laws or being expelled by the Exchange in past three years; 4.5. to acknowledge the Exchange s rules and regulations such as the Trading Rules, Delivery Rules, and etc; 4.6. to have main administrative staff who have experience of warehouse management for more than 5 years; 4.7. to be possessed of such storage yard and storehouse that are of certain scale, qualified to store the Exchange s listed product, equipped with sound and adequate facilities and standardized measuring systems as well as sound transporting

2 conditions; 4.8. to have rigorous and well-established inspection and laboratory testing system, receiving and dispatching system, and storage management system; 4.9. other requirements set forth by the Exchange. 5. The applicant must submit the following materials: 5.1. an application form; 5.2. a copy of the business license issued by the administration for industry and commerce;; 5.3. An auditing reports for past two years issued by a registered accounting firm, or copies of reports endorsed by the accounting firm with its official seal; 5.4. A copy of land use certification and other relevant documents of applicant organization; 5.5. a Letter of Approval for applying for being designated warehouse issued by the applicant s parent organization or by its Board of Directors, and a Letter of Guarantee issued by a relevant organization; 5.6. a description of and a short introduction to the warehouse s managing system; 5.7. other documents required by the Exchange. 6. Approval procedures for appointing a Designated Delivery Warehouse: 6.1. the Exchange shall pre-exam the application based on the materials as required in Article 5; 6.2. the Exchange shall send staff to the applicant organization to make field inspection and evaluation in accordance with the result of the pre-examination; 6.3. prior to starting physical delivery business related to the relevant futures contract, the Designated Delivery Warehouse shall draw up corresponding operating rules and regulations in accordance with these Measures and have them approved by the Exchange; 6.4. based on the results of field inspections and evaluations, the Exchange shall select the best among the applicants as the Designated Delivery Warehouse, and sign the Designated Delivery Warehouse Agreement with the selected warehouse. 7. Upon receipt of the Exchange s approval, the Designated Delivery Warehouse shall attend to the following matters: 7.1. to file all seals needed for issuing Standard Warrants with the Exchange to put them on record; 7.2. to file the Letter of Authorization that designates a special staff as the person in

3 charge of futures delivery business and the signature of said person with the Exchange to put them on record; 7.3. to submit Risk Performance Bond; 7.4. to assign futures commodity managing staff to attend the Exchange s delivery business training program ; 7.5. other matters prescribed by the Exchange. 8. Any Designated Delivery Warehouse that applies to surrender its privilege of being a Delivery Warehouse shall submit the Application for Surrendering the Privilege of Being a Delivery Warehouse to the Exchange for evaluation and approval. 9. A Designated Delivery Warehouse that surrenders its privilege or is expelled shall attend to the following matters: 9.1. all commodities for futures contract delivery shall be dispatched out of the warehouse or converted to spot commodities; 9.2. all liabilities and debts with the Exchange shall be settled; 9.3. Risk Performance Bond shall be returned in accordance with the Exchange s rules. 10. The Exchange shall promptly notify its members and Designated Delivery Warehouses of any affirmation, surrender or cancellation of the qualification of a Designated Delivery Warehouse and report it to the China Securities Regulatory Commission to file on record. Chapter 3 Rights and Obligations 11. Rights of a Designated Delivery Warehouse are: to issue Standard Warrants in accordance with the Exchange s rules; to collect relevant fees in accordance with the charge items, standards and schedules approved by the Exchange; to make recommendations to the Exchange concerning rules related to physical delivery; to have other privileges and rights prescribed by the Detailed Delivery Rules and the Designated Delivery Warehouse Agreement. 12. Obligations of a Designated Delivery Warehouse are: to comply with the Detailed Delivery Rules and other rules, submit to the Exchange s supervision and regulation, and furnish the Exchange with relevant information promptly; to inspect the commodities for futures contract delivery in accordance with the

4 standards prescribed futures contracts by the Exchange and put them in storage ; to take care of commodities in storage as required by regulations, and ensure the safety of the commodities; to supply commodities as prescribed in Standard Warrants, actively assist owners of commodities in arranging transportation for delivered commodities; to keep the business confidentiality related to futures trading; to participate in annual reviews organized by the Exchange; to submit Risk Performance Bond ; to promptly report to the Exchange whenever there is change to the legal representative, registered capital, shareholders or structure of shares, or storage area etc.; to furnish the Exchange with the audited annual financial report of the previous year at the beginning of each year; to report to the Exchange within three business days if being involved in any legal dispute; to report to the Exchange three days prior to the issuing date if issuing a Certificate Letter to certify the ownership of a certain commodity to a certain party; to fulfill other obligations prescribed by the Detailed Delivery Rules and the Designated Delivery Warehouse Agreement. Chapter 4 Daily Operations 13. Daily operations of a Designated Delivery Warehouse constitute in three phases: entry, preservation and departure of commodities. 14. The Designated Delivery Warehouse shall give priority to commodities for futures contract delivery while receiving and dispatching goods. 15. While receiving a pre-reported commodity, a Designated Delivery Warehouse shall timely take a sample of the commodity, inspect and test it, and enter the quantity of the received commodity and the result of inspection and testing into computer system. 16. The Designated Delivery Warehouse shall manage its futures delivery business through a computerized system, use uniform formats prescribed by the Exchange for its accounting book of commodities for futures contract deliveries and relevant invoices, vouchers and bills, and send said documents to the Exchange on a regular basis. 17. The Designated Delivery Warehouse shall assign a special place to store the

5 samples used for inspection and testing for purpose of further examination and testing. 18. Commodities of futures contracts shall be stored and piled properly. 19. The Designated Delivery Warehouse shall test the commodities of futures contracts in storage on a regular basis and record testing results for further examination. The items for testing shall include moisture, temperature, the scale of insect occurrences and the scale of rat occurrences. 20. If the moisture of a commodity of futures contract is higher than normal or not evenly distributed, the Designated Delivery Warehouse shall take proper steps promptly to ensure the quality of the commodity. 21. During the hot season (from May 1 st to October 31 st ), the Designated Delivery Warehouse must put additional reed mats on the top and at the bottom of the commodities that are stored in open space. 22. During the hot season, the Designated Delivery Warehouse shall treat commodities of futures contracts with fuming and steaming promptly. 23. The Designated Delivery Warehouse shall take proper steps to exterminate rats on a regular basis to reduce the damage to commodities for futures contract deliveries. 24. Designated delivery warehouse which is used to store linear low density polyethylene (LLDPE) and polyvinyl chloride(pvc) should be kept away from heat or flames and avoid direct sun exposure. It is prohibited to pile up in the open. 25. Trays should be provided for the Designated Delivery Warehouse which is used to store LLDPE and PVC. Humidity of the bottom of the stack position should be avoided. 26. LLDPE and PVC should be stored separately from oxidizing agent, acid and alkaline in the Designated Delivery Warehouse. 27. LLDPE and PVC from different manufacturers or of various brands should be stored separately in the Designated Delivery Warehouse. 28. Designated Delivery Warehouse which is used to store LLDPE and PVC is required to be ventilative, dry and clean, with fire safety equipment in good condition. 29. The Designated Delivery Warehouse shall actively assist owners of commodities to dispatch their goods, and must not intentionally delay the dispatching process. 30. The Designated Delivery Warehouse shall promptly report the progress of dispatching process, the stack position of dispatched goods and the direction of

6 dispatching to the Exchange. Chapter 5 Supervision and Management 31. The Designated Delivery Warehouse must purchase property insurance for each commodity for futures delivery in storage. 32. The Designated Delivery Warehouse must set up a separate account to manage commodities for futures contract deliveries. 33. The Designated Delivery Warehouse must appoint a officer in charge of futures delivery business, and appoint a special staff to be responsible for managing commodities for futures contract deliveries and handling operations related to Standard Warrants. 34. In order to ensure and promote the service quality which the Delivery Warehouses designated by the Exchange offer to members and customers, the Exchange has adopted the systems that each Designated Delivery Warehouse shall perform self inspection, selective inspection by the Exchange and regular annual review. The self inspect. In accordance with the Measures, the Detailed Delivery Rules, Measures of Standard Warrant Management and actual conditions of the warehouse, the Designated Delivery Warehouse shall choose one or several operational items to review, and report the results of the review to the Exchange. The Exchange s selective inspect. According to information the Exchange knows of or reports from members and customers, the Exchange may selectively choose the Designated Delivery Warehouse to inspect one or several operational items and make detailed records, to examine the conditions of the warehouse s daily operations in terms of its compliance with the Exchange s rules. The annual review. The Exchange will review and appraise each Designated Delivery Warehouse s operational performance every year. The Exchange will adjust the allocation of commodities and the limit of deliveries in accordance with the results of evaluation and appraisal. The Exchange shall expel the qualification of Designated Delivery Warehouse if the warehouse is unable to meet the requirements for a Designated Delivery Warehouse and fails to improve to the standard. The items for the Exchange to review include storage facilities, the capacity and appearance of the warehouse, business capabilities, business performance, accounting and booking management, the satisfaction level of members, and other items the Exchange deems as necessary to review. 35. It is within the Exchange s discretion to adjust the delivery limit for a Designated

7 Delivery Warehouse in accordance with market conditions. 36. The Designated Delivery Warehouse shall submit Risk Securities to the Exchange as a warranty to fulfill the warehouse s obligations. In case that there is no occurrence of financial compensation, the Exchange shall give the interest on the securities back to the warehouse, and the interests shall be calculated with the interest rate for bank saving account promulgated by the China People s Bank for the same time period; in case that there is an occurrence of financial compensation, the Exchange shall first use the Risk Securities to compensate, and may in its discretion to press the Designated Delivery Warehouse for further payment if the Risk Securities is short of the compensation. The amount of Risk Securities and the method of payment shall be specified in the Designated Delivery Warehouse Agreement. Chapter 6 Supplementary Provisions 37. Article 19, 21, 22, and 23 are not applicable to Designated Delivery Warehouse which is used to store metallurgical coke (Coke). 38. Any violation to these Measures shall be dealt with in accordance with pertinent regulations prescribed in the Measures for handling of Violations of Dalian Commodity Exchange. 39. The interpretative right of these Measures belongs to Dalian Commodity Exchange. 40. These Measures shall be in effect as of the date when it is announced.