深圳经济特区金属材料交易市场管理规定 Administrative Rules of Shenzhen Special Economic Zone on the Trading Market of Metallic Materials
（adopted at the 82nd meeting of the Executive Committee of Shenzhen Municipal People‘s Government on June 4， 1994， revised in accordance with the Decision on Adjusting Eighteen Rules， such as the Provisional Administrative Rules of Shenzhen Special Economic Zone on the Market of Gold and Silver， which is adopted at the 122nd meeting of the Executive Committee of the Second Shenzhen Municipal People’s Government on December 3，1998.）
颁布日期：19940825 实施日期：19940825 颁布单位：深圳市人民政府
Chapter Ⅰ General Provisions
Article 1 In order to standardize the business transaction in trading market of metallic materials， maintain the order in trading market of metallic materials and promote the circulation of commodities， these rules are formulated according to the provisions of relevant law and regulations， in combination with the accrual circumstances of Shenzhen trading market of metallic materials.
Article 2 The Shenzhen trading market of metallic materials （hereinafter referred to as the trading market） is a centralized trading market， which is promoted by promoters and formed by member units with joint investment according to these rules， and engages in bulk commodity transactions of black metallic materials （hereinafter referred to as metallic materials）。
Article 3 The trading market shall be operated and managed by nonprofit corporation， which is setup according to these rules.
Article 4 These rules shall be applicable to the spot trading of bulk commodities of metallic materials in the trading market， and the trading of bulk commodities of metallic materials in the form of medium-term or long-term purchase-and-sale contract.
Chapter Ⅱ Administrative Committee of Shenzhen Trading Market of Metallic Materials
Article 5 The administrative committee of Shenzhen trading market of metallic materials （hereinafter referred to as the committee） shall be established to coordinate， administer and supervise transactions in the name of the municipal government. The committee shall be composed of relevant departments of the municipal government.
The working office of committee shall be set up in the municipal bureau of trade and development， and shall take charge of the daily supervision on the trading market.
Article 6 The committee has the following main functions：
1、 examining and finalizing the Business Rules of Shenzhen on the Trading Market of Metallic Materials and other rules and regulations， and organizing the implementation according to these rules；
2、 coordinating the relations among relevant policies， departments or areas involved in the operation of trading market；
3、 administering and supervising the trading market， taking reasonable measures and procedures to stop and punish the illegal activities in transactions， and maintaining the normal order in the trading market；
4、 directing the business activities in the trading market；
5、 hearing the working reports of the trading market‘s board of directors and supervisory board regularly， and directing their work；
6、 examining the trading market‘s application of shutting down the market， suspending the market， or opening the market again under special circumstances.
Chapter Ⅲ Trading Market
Article 7 The promoters of trading market shall drawing up the constitution of trading market.
The constitution of trading market shall comply with the following aims and purposes：
1、contributing to the fair conduction of business， and the protection of members and clients‘ interests；
2、contributing to prevent the activities of fraud， playing the market， collecting unreasonable handling fees and other illicit activities to gain profits；
3、the trading market being entitled to refuse the member， which is ordered to stop transaction， to transact in the trading market， or refuse the unit， which is imposed removal penalty， to enter the trading market and become a member；
4、safeguarding the members‘ voting rights on the amendment of constitution， business rules or other rules and regulations， the selection and appointment of senior staff members and other important matters.
Article 8 The business of trading market shall be restricted to providing centralized trading market of metallic materials and relevant services.
The trading varieties in the trading market shall be restricted to metallic materials.
Article 9 The business rules of trading market shall be drafted according to these rules， and be submitted to the committee for examination and finalization. The business rules of trading market shall stipulate the following items：
1、the categories of trading；
2、the specific varieties and specifications of metallic materials and the minimum unit of per trading；
3、the time to open and close market；
4、the closure of market；
5、the means of concluding contracts；
6、the means of delivery and settlement.
Article 10 Anyone， who wants to engage in metallic materials transaction in the trading market， shall conclude a dealing contract. The content and form of dealing contract shall comply with relevant provisions of the Law of People‘s Republic of China on Economic Contracts.
Article 11 The transaction report of the trading market shall be made regularly and be submitted to the municipal bureau of trade and development.
Article 12 In order to maintain the order of trading market and prevent abnormal factors from interfering dealing prices， the committee may take administrative measures to prevent prices from rising or falling. In order to protect public interests， the committee may order the trading market to be closed down temporarily under natural disaster， war or other events of force majeur.
Article 13 The settling institute shall be set up in the trading market， and shall conduct uniform settlement to transactions in the trading market.
Article 14 The membership system shall be implemented in the settling institute. The member of settling institute shall meet the following requirements：
1、being a business corporation registered in China；
2、having a registered capital of no less than 20 million yuan；
3、being a member of the trading market， or being a financial or insurance institution；
4、paying capital reserve of trade loss to the settling institute， or providing corresponding guarantee.
Article 15 Anyone， who deals without the membership of settling institute， shall settle account via a member of the settling institute， and pay the settling service fees at certain ratio.
The charging standard of settling service fees stipulated in the preceding paragraph shall be examined and decided by the municipal department of price.
Article 16 The settling institute is liable to urge and supervise both parties to fulfill the dealing contract upon its conclusion， and is liable to fulfill the contract substituting the delinquent party. The settling institute has the right to deduct the sum of loses， resulted from breaching of contract， from the guaranty bond of the delinquent party. If the guaranty bond of the delinquent party is not enough to pay for actual losses， the settling institute has the right of recourse.
Chapter Ⅳ Members of the Trading Market
Article 17 The member system shall be implemented in the trading market. The member of trading market shall satisfy the following requirements：
1、being a business corporation registered in China；
2、having a registered capital of no less than 5 million yuan （RMB， the same below）；
3、having an annual sales amount of no less than 100 million yuan；
4、having good commercial credit.
Article 18 Anyone， who satisfies the requirements stipulated in the preceding article， recognizes the constitution of trading market， and fills in the Membership Application Form for the Shenzhen Trading Market of Metallic Materials， will be granted a membership card by the committee and become a member of the trading market after the trading market submitting the application with its comment to the committee for examination and approval.
Article 19 Members shall pay capital subscription to the trading market according to the provisions of constitution.
Article 20 Members shall pay the dealing guarantee bond and delivery settlement fund to the trading market according to the provisions of constitution， and shall pay the dealing service fees according to the trading amount.
The charging standard of dealing service fees stipulated in the preceding paragraph shall be examined and decided by the municipal department of price.
Article 21 A member may transfer his share of rights according to the provisions of constitution， but shall report to the trading market for approval. When a member transfers his share of rights to a nonmember， the transferee shall satisfy the requirements stipulated in Article 17 of these rules and conduct the admission formalities of the trading market according to the provisions of Article 18 of these rules.
Article 22 The member of trading market may delegate one or two trading representatives to conduct transaction in the trading market.
Article 23 The trading representative shall satisfy the following requirements：
1、having full capacity for civil conduct；
2、having the knowledge on finance and market， and certain working experience corresponding with the business he undertakes；
3、having never been imposed of criminal responsibility；
4、having passed the examination and acquired the Qualification Certificate of Trading Representative issued by the trading market.
No one may conduct transaction in the trading market without the Qualification Certificate of Trading Representative.
Article 24 The trading representative shall conduct transaction in the trading market according to the authorization of member unit‘s legal representative， and the instruction of member unit.
The contract， which is concluded by a trading representative in the trading market within the scope of authority referred to in the preceding paragraph， shall have legal binding force after it is verified by the trading market.
Chapter Ⅴ Organizational Structure of the Trading Market
Article 25 The general meeting of trading market is the highest organ of power. It has the following main functions and powers：
1、adopting and amending the constitution of trading market；
2、discussing the working report of board of directors；
3、discussing the financial report of trading market；
4、electing the board of directors and supervisory board of trading market；
5、other important matters that shall be decided by the general meeting of members.
Article 26 The convening procedures and debate rules of the general meeting of members shall be stipulated in the constitution of trading market.
Article 27 The board of directors is the policy-making organ of the operation and management of trading market. It has the following main functions and powers：
1、implementing the decisions of general meeting of members；
2、putting forward proposals of amending the constitution or the trading rules of trading market；
3、examining the qualification of the unit， which applies for membership of the trading market；
4、appointing senior officers of the trading market， such as the president， vice president， and chief accountant；
5、deciding important internal affairs of the trading market；
6、other functions and powers authorized by the constitution or the general meeting of members.
Article 28 The board of directors shall be composed of 15 members， 12 of whom shall be member directors and the rest 3 shall be nonmember directors. The member directors shall be selected from members by the general meeting of members. The nonmember directors （including the president of trading market） shall be nominated by the committee from the representatives of relevant organizations and professional staff， and adopted by the general meeting of members.
Article 29 The board of directors shall have one chairman， and one to three vice chairmen， who shall be elected by and from all directors. The election result shall be submitted to the municipal bureau of trade and development for record.
Article 30 The president of trading market shall be appointed by the committee from the nonmember directors.
Article 31 The president of trading market shall represent the trading market externally， and take charge of the daily work and management of trading market internally. He has the following main functions and powers：
1、organizing the implementation of decisions of the general meeting of members or the board of directors， and reporting work to them；
2、taking charge of daily transactions and executive management of the trading market；
3、nominating senior officers， such as the vice president and chief accountant， deciding the appointment and dismissal of the person in charge and staff of trading market‘s internal organ；
4、handling relevant affairs in the name of the trading market externally.
Article 32 The Trading market shall have a supervisory board. The supervisory board shall be composed of 7 members， 3 of whom shall be member supervisors elected from members by the general meeting of members， 4 of whom shall be nonmember supervisors elected from the representatives of relevant organizations and professional staff by the general meeting of members.
A supervisor may not be served by a director or serve as a director concurrently.
Article 33 The supervisory board shall take charge of supervising the business and financial situation of the trading market. The supervisory board shall have the following main functions and duties：
1、supervising and inspecting transactions in the trading market according to the provisions of national law， regulations and government rules；
2、examining the implementation of the rules and regulations of the trading market；
3、examining the business and financial situation of the trading market；
4、accepting members‘ complaints and maintaining members’ legal rights and interests；
5、mediating and handling the disputes aroused from members when trading in the trading market；
6、other functions and powers stipulated by the constitution of trading market.
Article 34 The convening procedure and debate rules of the supervisory board shall be stipulated by the constitution of trading market.
Chapter Ⅵ Self-operated Businesses and Transactions on Commission in the Trading Market
Article 35 The self-operated business in the trading market （hereinafter referred to as the self-operated business） refers to the activity that a member buys or sells metallic materials in the trading market by himself.
The transaction on commission in the trading market （hereinafter referred to as the transaction on commission） refers to the activity that a member buys or sells metallic materials in the trading market for his client.
Article 36 Only members of the trading market may engage in self-operated businesses or transactions on commission of metallic materials in the trading market.
Article 37 Any member， who plans to engage in transactions on commission， shall apply to the trading market. The application shall be submitted to the committee for approval with the comment of trading market.
Article 38 The member， who engages in self-operated businesses and transactions on commission concurrently， shall separate the two businesses apart.
Article 39 When trading for a client， the member shall open a separate account for the client， and regularly report to the client about the income and expenses of cash or other properties.
Article 40 When engaging in transactions on commission， the member shall transact according to the matters or conditions entrusted by the client. The member shall not accept a client‘s dealing commission of deciding the trading variety， amount， price or delivery time for him.
Article 41 When a transaction is concluded， the member engaging in transactions on commission shall make a written conclusion report immediately， and deliver it to the client.
Article 42 The client has the right to look up his account at any business hour.
Article 43 The member shall regularly deliver the written operation report of self-operated business or transaction on commission to the trading market. The trading market shall collect all reports and submit them to the municipal bureau of trade and development. The municipal bureau of trade and development has the right to look up members‘ business records and account books of self-operated business or transaction on commission at any business hour when necessary.
Article 44 Any one of the following activities may not be committed in the trading market， or by its manager， member or business personnel.
1、disclosing the client‘s entrusted matters or other relevant secrets；
2、promising the client to gain profits；
3、agreeing on sharing interests or bearing losses with the client；
4、transacting for himself by using the client‘s account or name；
5、accepting the entrustment of a client， who has not completed the formalities of opening account， and transacting，
6、making exaggerate advertisement or spreading untrue information to the client.
Article 45 No unit or individual is allowed to commit any one of the following activities in the trading market：
1、using inside information to transact；
2、continuously buying or selling the same kind of metallic material at raising price with the aim to play the market；
3、fabricating or spreading false or misleading information；
4、two or more units colluding with each other in private， simultaneously buying or selling the same kind of metallic material， and producing false supply and demand situation or price；
5、manipulating or disturbing the trading order by other direct or indirect means.
Chapter Ⅶ Settlement of Trading Disputes
Article 46 The settlement of dispute， which is aroused from transaction in the trading market and between members， clients， or a member and a client， shall be negotiated by the disputing parties in time. If the negotiation is failed， the disputing parties may apply to the supervisory board of trading market for mediation or settlement according to their agreement.
The supervisory board shall make a decision of mediation or settlement according to the constitution and business rules of the trading market.
Article 47 Any member， who refuses to carry out the decision of mediation or settlement made by the supervisory board， may be ordered by the committee to stop trading business for 3 to 6 months or forever.
Article 48 The disputing parties shall carry out the decision of mediation or settlement made by the supervisory board. If the party is not agreed with the decision or refuses to carry it out， the other party may apply for arbitration to the arbitration organ of economic contracts according to their agreement， or bring a lawsuit before the people‘s court according to law.
Article 49 The dispute， which is aroused from transaction and between a member and the trading market， shall be settled according to the provisions of the constitution and business rules of the trading market.
Chapter Ⅷ Penalty Provisions
Article 50 Any member， who violates the provisions of Article 38， Article 39， Article 40 or Article 41 of these rules， and causes losses to the client， shall bear the liability of compensation with the person directly liable. The member may be ordered to make correction by the committee， and shall be investigated and punished by the municipal administrative department of industry and commerce if the circumstance is serious.
Article 51 In case that the trading market or its manager， member unit， trading representative of member unit， or other business personnel violates the provisions of Article 44 of these rules and causes losses to the client， the person liable shall be investigated for legal liability. Besides， the unit， which is represented by the person liable， shall bear the joint liability of compensation.
Article 52 Any unit or individual， who violates the provisions of Article 45 of these rules， disturbs the order of trading market and damages the trading parties‘ interests or social public interests， shall bear the liability of compensation， and shall be imposed a fine of less than one time of the illegal operation income by the municipal administrative department of industry and commerce.
Chapter Ⅸ Supplementary Provisions
Article 53 The municipal bureau of trade and development may draw up concrete administrative measures according to these rules and implement them after they are examined and finalized by the committee.
Article 54 These rules shall go into effect as of the date of promulgation.