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To All Members, Overseas Special Participants, and Overseas Intermediaries,

To enhance supervisory efficiency and ensure market stability, and as provided under Article 33 of the Clearing Rules of the Shanghai International Energy Exchange, Shanghai International Energy Exchange (INE) plans to collect order fees on futures and options contracts, based on the extra amount of client messages over the benchmark, starting from November 26th, 2021 (i.e., during continuous trading on the evening of November 25th).

I. Scope of Application

1. INE will begin collecting order fees, per the corresponding formula, from clients who have placed or canceled more orders than the benchmark orders in futures and options contracts or (for options only) requested for quotes on the current day.

2. This fees collection plan and formula apply similarly to Non-Futures Firm Members and Overseas Special Non-Brokerage Participants.

3. INE-approved market makers are exempt from the order fees with respect to the products for which they make a market.

II. Fees Formula

1. Order fees for any particular futures or option contract = Σ The client’s total message amount for that contract at different levels × the corresponding fees rate. The fees rates are as follows:

In particular, message amount = total number of trading orders such as order placement, order cancellation, and RFQ; OTR= (message amount / number of executed orders) – 1. If the actual number of executed orders is 0, it would be treated as 1 for calculating OTR. The message amount mentioned above includes order placement and cancellation resulting from fill-or-kill (FOK) orders and fill-and-kill (FAK) orders.

2. For a contract that supports trade at settlement (TAS) orders, the message amount from TAS orders and that from other orders for the contract are aggregated.

III. Fees Calculation

1. For any client that maintains trading codes with multiple account-opening institutions, order fees are calculated by the formula above based on the aggregated message amount and number of executed orders of the client under all trading codes. The order fees payable through each account-opening institution are proportional to the percentage of that client’s message amount through that institution.

2. Clients linked by actual control relationship are treated as a single client for the calculation and collection of order fees. For any client that is involved in more than one group of accounts linked by actual control relationship, INE will first calculate the order fees payable by each group, and then that by the client within each group (the latter, “group-specific payment”). The largest of the group-specific payments will be the order fees actually payable by the client.

IV. Fees Collection

INE will deduct order fees from the clearing deposits of relevant Members and Overseas Special Participants during daily clearing. If the fees cannot be collected at daily clearing due to special circumstances, INE may do so at time of clearing on the next trading day, and the details for which will be announced separately.

V. Other Matters

1. Members, Overseas Special Participants, and Overseas Intermediaries are expected to upgrade their IT systems before November 25th, 2021. Please contact your IT vendors for the specifics.

2. The revision of relevant rules including the Administration of Abnormal Trading Behaviors Rules of Shanghai International Energy Exchange will be released soon.

 

Shanghai International Energy Exchange
November 12, 2021
 

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