DISCLAIMER: This English translation is being provided for informational purposes only and represents a desire by NCCE to promote better understanding of the NCCE by non-resident participants. While care has been taken to ensure that the translation is accurate and complete, NCCE accepts no liability or responsibility for any loss or damages, including trading losses, that may be incurred from any inaccuracy or omission in the English translation. In the event of discrepancies between the English version and the original Chinese version, the Chinese version shall prevail. Any dispute that may arise within or without a court of law with regard to the meaning of the words, provisions and stipulations of the rules, regulations and agreements shall be resolved in accordance with the Chinese texts.
中文版
Chapter 1 General Provision Chapter 2 The Establishment of an Operation Center (Offshore Center) Chapter 3 Rights and Obligation of an Operation Center (Offshore Center) Chapter 4 The Termination of an Operation Center (Offshore Center) Chapter 5 Supervision and Management of an Operation Center (Offshore Center) Chapter 6 Supplementary Regulations Chapter 1 General Provision Article 1 In accordance with laws and regulations of People’s Republic of China (PRC) and rules of Nanning (China-ASEAN) Commodity Exchange (hereinafter referred to as NCCE), the Administrative Regulations for Nanning (China-ASEAN) Commodity Exchange Cross-border Trading Operation Center (Offshore Center) (hereinafter referred to as Regulation) is hereby made for standardized management and fair competition in the market, and the protection of legitimate rights of all parties. Article 2 A Trading Operation Center (Offshore Center) in this Regulation means a business entity or an economic organization which is approved by NCCE in accordance with laws and regulations of People’s Republic of China and rules of NCCE to provide services such as broker service for members and traders. Article 3 A Trading Operation Center (Offshore Center) is under the supervision of NCCE while a management system shall also be made for self-management reinforcement and risk prevention. Article 4 This Regulation shall be applied to the Trading Operation Center (Offshore Center), their branches and staff.
Chapter 2 The Establishment of a Trading Operation Center (Offshore Center)
Article 5 Trading Operation Centers (Offshore Centers) can be categorized into domestic operation centers which run cross-border trading business and offshore centers which run the same business. The cross-border trading business of the entities mentioned above includes broker services for members and traders, additional services and their own operations where other regulations and rules of NCCE can be applied. 1) An Operation Center is a business entity or an economic organization which is established in accordance with laws and regulation of PRC, qualified by NCCE with the title “Operation Center”, and directly under the supervision of NCCE. 2) An Offshore Center is a business entity or an economic organization which is established in accordance with local laws and regulations, granted with a foreign exchange transaction account and taxation qualification, approved and filed by NCCE with offshore center qualification, supervised by and under collaboration with NCCE. 3) Operation Center (Offshore Center) are directly under the management of NCCE, granted with a plaque and certificate for operation. Article 6 The precondition and requirement to operate as an Operation Center (Offshore Center) is the qualification for operation Article 7 Any other conditions or regulations put forward by NCCE for operating an Operation Center (Offshore Center) shall be followed. Article 8 The requirements to operate as an Operation Center are as follow: 1) Being a business entity or other organization which is duly organized, validly existing within the territory of PRC, under the laws of the place of its establishment. 2) Having a registered capital or business fund meeting the requirement of NCCE. 3) Having a management team with 3 years and above of experience of bulk commodity online trading, futures, security, finance, commodity trading, investment or business management, with at least 5 members. 4) Agreeing to and operate under the rules and regulations of NCCE. 5) Having a fixed site of operation which is no smaller than 800 square meters with all necessary facility. 6) Having a well-established organization with financial, administrative and risk control management system. 7) Subscribe to the fees of NCCE. 8) Meeting other conditions put forward by NCCE. The requirements to operate as an Offshore Center are as follow: 1) Being a business entity or other organization which is duly organized, validly existing outside PRC under the laws of the place of its establishment, with an independent foreign exchange transaction account and tax registration certificate. 2) Having a registered capital or business fund meeting the requirement of NCCE. 3) Providing a valid copy of financial account with at least 3 years of records for verification. 4) Having a management team with 3 years and above of experience of bulk commodity online trading, futures, security, finance, commodity trading, investment or business management, with at least 5 members. 5) Agreeing to and operate under the rules and regulations of NCCE. 6) Having a fixed site of operation which is no smaller than 800 square meters with all necessary facility. 7) Having a well-established organization with financial, administrative and risk control management system. 8) Subscribe to the fees of NCCE. 9) Meeting other conditions put forward by NCCE. Article 9 The location and quantity of Operation Center (Offshore Center) shall be decided by NCCE according to the requirement of business. Article 10 The Operation Center (Offshore Center) will be authorized by NCCE with a right to recruit spot membership, broker membership, traders and conduct their own operations according to the requirement of business. When planning the location and scale of spot membership and broker membership, NCCE follows the principal of “control the total quantity, keep a rational distribution and a strict approval procedure”. Article 11 Generally, an Operation Center shall be established in a provincial capital city, and there shall not be two Operation Centers in the same city; while there shall not be two Offshore Centers in the same foreign country. Article 12 The naming of an Operation Center follows the pattern of “city + Operation Center + of Nanning (China-ASEAN) Commodity Exchange”, for example, “Shanghai Operation Center of Nanning (China-ASEAN) Commodity Exchange”; the naming of an Offshore Center follows the pattern of “country + Offshore Center + of Nanning (China-ASEAN) Commodity Exchange”, for example, “Japan Offshore Center of Nanning (China-ASEAN) Commodity Exchange. Article 13 The design of the website and office of an Operation Center (Offshore Center) shall clearly show the title of “Operation Center (Offshore Center)” without intention to hide or omit. The plaque with the title “Operation Center (Offshore Center)” shall also be displayed at an obvious place. Article 14 An Operation Center (Offshore Center) shall be fully responsible for the supervision and management of the business operation of its own branches and members, and the consequence of them.
Chapter 3 Rights and Obligations of Operation Center (Offshore Center)
Article 15 An Operation Center (Offshore Center) has the following rights: 1) to operate under the rules and regulations of NCCE; 2) to access the trading information and other services provided by NCCE (the range of compensable services and their fees will be demonstrated by NCCE); 3) to have the priority to participate the new business on the platform of NCCE; 4) to have business advice from NCCE; 5) to charge fees according to the rules and regulations of NCCE; 6) to give suggestion about the operation of NCCE; 7) other rights granted by rules and regulations of NCCE. Article 16 An Operation Center (Offshore Center) has the following obligations: 1) to be subject to the laws and regulations of the country where it is established; 2) to follow the rules and regulations of NCCE; 3) to participate in the operation under the rules and regulations of NCCE; 4) to protect the lawful right of all parties in the trade, handle emergencies and incidents following rules and regulations of NCCE; 5) to fully perform the member recruitment and maintenance including providing business training, advice, member services and establishing a management system; 6) to keep confidentiality; 7) to raise fund for the related major project or new business and make payment to the risk fund; 8) to make payments according to the rules and regulations of NCCE; 9) to perform other obligations made by NCCE.
Chapter 4 The Termination of an Operation Center (Offshore Center)
Article 17 Shall any of the following circumstances happen, NCCE may disqualify the business entity or organization to operate as an Operation Center (Offshore Center): 1) Transferring the qualification to run as an Operation Center (Offshore Center), entrusting or contracting the management to other persons or organization without approval from NCCE; 2) Suffering from chaos in management and insufficiency of fund, staff and facility, and no improvement is made after taking advice from NCCE; 3) Refusing to perform the decision of NCCE; 4) Running illegal business with the qualification of Operation Center (Offshore Center); 5) Failing to pass the annual inspection for Operation Center (Offshore Center), and failing to modify within the timeframe given by NCCE; 6) Other violation against laws and regulations of the country or rules of NCCE. Article 18 If the Operation Center (Offshore Center) is disqualified by NCCE, the clearing and aftermath shall be done in accordance with related regulations. Article 19 When applying for the termination of qualification to run as an Operation Center (Offshore Center), the business entity or economic organization shall provide documents as required by NCCE. With the initial approval, clearing and aftermath shall be in procedure. When the procedure is done, the Agreement of Termination of Qualification of Operation Center (Offshore Center) (hereinafter referred to as the Agreement) is signed by the entity or organization and NCCE. The signing of the Agreement marks the official termination of the qualification. Article 20 A report in writing shall be submitted to NCCE within 10 days when the following circumstances happen: 1) change of the legal representative; 2) change of register capital, investor, shareholder or equity ratio; 3) change of company name, address, office site, business scope or contact; 4) the establishment, merger or termination of branches; 5) change of office site, person in charge or business scope of branches; 6) change of person in key position; 7) major damage happens to the operation, contract performance or capacity to take risk; 8) a lawsuit or economic dispute involving RMB 500,000 or above happens; 9) being placed on file for investigation or punished by the authority or other exchanges; 10) other circumstances in which a report is required by NCCE. Chapter 5 Supervision and Management of an Operation Center (Offshore Center)
Article 21 The Operation Center (Offshore Center) and its staff shall follow the laws, regulations, policies of the country it located, as well as rules, supervision and management of NCCE. Article 22 Agreements and contracts, which are related to business operation of NCCE signed between an Operation Center (Offshore Center) and other parties shall be examine and approved by NCCE before the signing. The Operation Center (Offshore Center) shall report to the NCCE for filing and confirmation within 5 working days from the signing. Without the filing and confirmation by NCCE, the agreement or contract is considered invalid, and NCCE shall not be liable to any consequential legal dispute or responsibility. Article 23 The advertising and promotion of an Operation Center (Offshore Center) shall follow the “Regulation on Advertising for Operation Center (Offshore Center) of Nanning (China-ASEAN) Commodity Exchange”. Article 24 Annual inspection is conducted to assess the performance of Operations Centers (Offshore Centers), details will be seen in other regulations. Article 25 Annual inspection is conducted to assess the performance of Operations Centers (Offshore Centers), the period is from 1st July to 31st August each year. Application for the annual inspection procedure shall be submitted within the timeframe set by NCCE. The act of overdue applications or failure to pass the annual inspection will face penalty from NCCE according to “Resolutions to Breaching and Default in Cross-border Trading of Nanning (China-ASEAN) Commodity Exchange”. NCCE reserves the right to disqualify an Operation Center (Offshore Center) in grave circumstances. Article 26 NCCE reserves the right to require modification with a deadline if following circumstances happen to an Operation Center (Offshore Center): 1) incompetence in financial management, poor performance or steep decline is seen in operation competence; 2) failing the annual inspection because there are major problem(s); 3) lacking of mid and high level executives; 4) frequent complaints are filed by the clients; 5) violating rules and regulations of NCCE; 6) other circumstances determined by NCCE. Article 27 If the Operation Center (Offshore Center) cannot meet the requirements before the deadline, NCCE has the right to apply restrictions or intervention on its transactions according to “Resolutions to Breaching and Default in Cross-border Trading of Nanning (China-ASEAN) Commodity Exchange”. NCCE reserves the right to disqualify an Operation Center (Offshore Center) in grave circumstances. Article 28 A complain resolution system and a customer service center shall be established and improved by the Operation Center (Offshore Center). Generally, the complaints are handled by the Operation Center (Offshore Center). A report in writing shall be submitted to NCCE if the complaint is filed by 3 or more complainants or a single complaint involves lawsuit or a dispute of over RMB 500,000. NCCE has the right to directly handle a complaint which the Operation Center (Offshore Center) cannot cope with. Article 29 An Operation Center (Offshore Center) shall maintain NCCE’s reputation and cooperation with NCCE in emergencies or incidents. If the Operation Center (Offshore Center) failed to provide sufficient customer service in an emergency or incident, NCCE has the right to apply restrictions or intervention on its transactions. Article 30 Staff handling the cross-border trading business or related business on the platform of NCCE shall undergo professional training by NCCE or authorized institutes and gain qualification. Article 31 The Operation Center (Offshore Center) is responsible for the business operation conducted by its own staff. In the case of disqualification of an Operation Center (Offshore Center), the authority granted to its staff by the Operation Center (Offshore Center) becomes invalid.
Chapter 6 Supplementary Provision Article 32 Shall breaching to this regulation happen, NCCE will take necessary measure according to “Resolutions to Breaching and Default in Cross-border Trading of Nanning (China-ASEAN) Commodity Exchange” Article 33 NCCE reserves the rights for final interpretation and amendments to the Regulation. Article 34 The Regulation is put in to practice since the date of implementation. Nanning(China-ASEAN) Commodity Exchange Limited August 1st 2016 |
