These Regulations are promulgated pursuant to Article 82, paragraph 3 of the Futures Trading Act ("the Act").

A managed futures enterprise may engage in the following business:
1. Accepting mandates from specified persons to conduct discretionary futures trading business.
2. Other related business as approved by the Competent Authority.

The term "discretionary futures trading business" as used in these Regulations refers to business in which a managed futures enterprise accepts a mandate from a specific person to perform analyses and make judgments, with respect to assets handed over by that principal for management, relating to futures trading, trading or investment of futures-related spot commodities, or other items approved by the Competent Authority, and to execute trades or investment on the principal's behalf based on those analyses and judgments.
"Futures-related spot commodities" in the preceding paragraph means domestic and foreign spot commodities related to futures trading contracts and approved for trading by the Competent Authority.

The term "custodian institution" as used in these Regulations refers to the institution entrusted by the principal for the opening of accounts for futures trading or futures-related spot commodity investment, deposit of margins and premiums, custody of funds and securities, clearing and settlement, account servicing, and other related matters.

The term "responsible person" as used in these Regulations refers to a person who shall bear responsibility under Article 8 of the Company Act or the provisions of other acts.

The term "managerial officers" as used in these Regulations shall accord with its meaning under the Company Act, and includes those registered as managerial officers with the Ministry of Economic Affairs or those who, under a company's articles of incorporation or contractual provisions, are authorized to manage company affairs or to sign on behalf of a company.

The term "associated persons" as used in these Regulations refers to those personnel carrying out the following operations on behalf of a managed futures enterprise:
1. Research and analysis, making trading decisions, or executing trades in discretionary futures trading.
2. Promotion or solicitation in regard to discretionary futures trading operations.
3. Internal audits.
4. In-charge accountant.
5. Conducting of other approved operations.

Managed futures enterprises shall establish internal control systems pursuant to the Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets set by the Competent Authority and the Rules Establishing Standards for the Internal Control Systems of Managed Futures Enterprises prescribed by the Chinese National Futures Association ("CNFA").
The operation of managed futures enterprises shall be carried out in accordance with acts and regulations, the enterprise's articles of incorporation, and the internal control system prescribed in the preceding paragraph.
For a discretionary futures trading case of a specific dollar amount or higher, or in which there is any suspicion of money laundering, the managed futures enterprise shall keep trading vouchers and records of the verification of customer identity and quotations sufficient for a full understanding of the transaction, and shall comply with the Money Laundering Control Act and internal control system rules.
The adoption of the internal control system of paragraph 1, and amendments thereto, shall be reported to the board of directors for their approval, and documentation on the system retained for reference. Amendments to the internal control system shall be adopted within the prescribed time limit pursuant to notice by the Competent Authority or other futures-related agencies.
The "specific dollar amount" referred to in paragraph 3 is as provided in the Money Laundering Control Act.

Managed futures enterprises shall establish departments exclusively responsible for research and analysis, making trading decisions, executing trades, and undertaking promotion or solicitation in connection with discretionary futures trading business.
The exclusive departments specified in the preceding paragraph shall be respectively established as required according to the scope of business, operational conditions, and internal control system of the enterprise; managerial officers whose qualifications conform to the provisions of Article 51 of these Regulations shall be appointed to head the departments.

Managed futures enterprises shall establish internal auditing systems to audit the enterprise's finances and operations on a regular or an irregular basis; audit reports shall be compiled and retained for reference.
The audit report referred to in the preceding paragraph shall note whether the enterprise's finances and operations are in compliance with applicable acts and regulations and the enterprise's internal control system.

In any of the following events, the managed futures enterprise shall first report to the Competent Authority for prior approval:
1. A change in the enterprise's name.
2. A change in the amount of capitalization.
3. A change in the place of business.
4. A change in the business items.
5. Receiving assignment of all or the principal part of the operations or assets of another managed futures enterprise, or assignment of all or the principal part of it own operations or assets.
6. Merger, consolidation, or dissolution.
7. Other matters requiring prior reporting and approval as provided by the Competent Authority.
For matters to be reported to the Competent Authority for prior approval pursuant to the preceding paragraph, reports shall be forwarded to the Competent Authority through the CNFA.

If any of the following circumstances exists at a managed futures enterprise, it shall report to the Competent Authority:
1. Commencement, suspension, resumption, or termination of operations.
2. Change of the responsible person.
3. Where, due to circumstances arising out of operations at the managed futures enterprise, the responsible person or any of the associated persons or other personnel is involved in litigation or arbitration, or is subject to compulsory execution as an obligor, or the managed futures enterprise is a bankrupt, or is refused services or has a negotiable instrument dishonored by a bank.
4. Where any circumstance in Article 5 of the Standards for the Establishment of Managed Futures Enterprises applies to the responsible person or an associated person.
5. Where an act of the responsible person, an associated person, or other personnel violates the Act or any order of the Competent Authority issued pursuant to the Act.
6. When there is a change in the shareholding of the responsible person or any shareholder holding five percent or more of the enterprise's shares.
7. Other matters required to be reported pursuant to regulations of the Competent Authority.
For events under subparagraph 1 of the preceding paragraph, the enterprise shall make a report prior to the fact; for events under subparagraphs 2-5, the enterprise shall make a report within five business days from the day on which the event occurred or the enterprise learned of its occurrence; for events circumstances under subparagraph 6, the responsible person or any shareholder holding five percent or more of the enterprise's shares shall report to the enterprise prior to the fifth day of the following month, and the enterprise shall compile the information in a report prior to the 15th of the same month.
Reports of circumstances under paragraph 1 shall be forwarded to the Competent Authority through the CNFA.
The term "business day" in these Regulations means days on which trading takes place in the domestic futures market.

A managed futures enterprise may not use the business permission granted by the Competent Authority as either a promotion or a guarantee of its business ability or financial soundness.

A managed futures enterprise shall display its certificate of license prominently in its place of business.

The business of a managed futures enterprise shall be carried out by registered, qualified associated persons.

Acts performed by associated persons of a managed futures enterprise pursuant to the subparagraphs of Article 7 shall be deemed acts performed within the authorized scope of the given managed futures enterprise.