Introduction

The review and approval of application for hedging positions refers to the business in which a Non-Futures Firm Member (Non-FF Member), an Overseas Special Non-Brokerage Participant (OSNBP) or a Client submits, via an account opening institution, the application for hedging positions to the Shanghai International Energy Exchange (the Exchange) in the Exchange’s electronic hedging position management system in accordance with the Trading Rules of the Shanghai International Energy Exchange. The Exchange reviews and renders a decision on the application for hedging positions based on the application materials submitted by such Non-FF Member, OSNBP or Client.
An account opening institution refers to a Futures-Firm Member (FF Member), an OSNBP or an Overseas Intermediary, etc.

Procedures Involved

The review and approval of application for hedging positions involves one (1) procedure, i.e. reviewing and deciding on the application for hedging positions.

Description for the review and approval of application for hedging positions
（1）An FF Member, an OSNBP or an account opening institution submits the application for hedging positions to the Exchange’s electronic hedging position management system;
（2）The Exchange carries out the review and approval procedure according to relevant regulations; and
（3）The FF Member, the OSNBP or the account opening institution obtains the reviewing results via the Exchange’s electronic hedging position management system, and then prints and sends such results to its Client.