Chapter I GENERAL PROVISIONS
1. In order to strengthen the risk management of Singapore Global Ginseng Exchange, safeguard the legitimate rights and interests of all parties to the trading, and ensure the normal conduct of trading of the Singapore Global Ginseng Exchange (hereinafter referred to as the Exchange), this method is formulated under the Singapore Global Ginseng Exchange Trading rules.
2. Singapore Global Ginseng Exchange risk management implements membership access system, third-party quality inspection system, third-party warehousing security system, full inventory insurance system, price rise (fall) limit system, purchase limit system, employee self-discipline system and risk warning system.
3. The Exchange’s commodity listing merchants, the marketing agencies, trading members and designated warehouses, designated quality inspection centre, designated settlement banks and the related participants must abide by these measures.
Chapter II MEMBERSHIP ADMITTANCE SYSTEM
4. The Exchange conducts a series of market admittance measures, such as the qualification assessment of commodity listed merchants, marketing agencies and trading members to control the risk.
5. The Exchange implements an annual inspection and verification system for commodity listing merchants and marketing agencies. The annual inspection period is July 1 to August 31 each year. If the annual inspection is not passed, the Exchange will suspend or terminate its membership and make an announcement.
Chapter III THIRD PARTY QUALITY INSPECTION SYSTEM
6. The Exchange designated the China Ginseng Product Quality Supervision and Inspection Center to to carry out quality inspection on the goods entering the designated delivery warehouse. The designated inspection agency shall be responsible for the inspection report issued by it, and shall not conduct the quality inspection of the listed commodity listed merchant or the markeing agency. The inspection results of the department are used as quality certification standards.
7. China National Ginseng Product Quality Supervision and Inspection Center carries out inspection and appraisal of traded goods according to the national standard of the People’s Republic of China, “Wild ginseng identification and classification quality” (GB/T 18765-2008). The inspection and identification certificate can be found in the National Ginseng Product Quality Supervision and Inspection Center official website (www.shenrong.org).
Chapter IV THIRD PARTY WAREHOUSING SECURITY SYSTEM
8. The third-party warehousing agency designated by the Exchange provides members with warehousing services that meet the storage requirements of wild ginseng to ensure cargo safety.
9. Third-party warehousing institutions must be in strict accordance with the requirements of the box marking the height, number of layers and direction stacking.The products are placed neatly and orderly for easy inventory and daily inspection, and is processed according to the trading member application for checkout settlement procedures.
Chapter V FULL INSURANCE SYSTEM FOR WAREHOUSING COMMODITIES
10. The Exchange selects the professional insurance institutions to cooperate, and the third-party warehousing institutions designated by the Exchange shall be fully insured for the members’ warehousing commodities.
11. After the expiry of the insurance period, the designated warehousing institution of the Exchange shall be responsible for renewal services. If the subject matter of the insurance is in danger, the warehousing institution designated by the Exchange will handle insurance claims and other related matters to the insurance institution.
Chapter VI PRICE INCREASE (FALL) LIMIT SYSTEM
12. The Exchange implements a price increase (fall) limit system for listed commodities, and the Exchange determines the daily price fluctuation range of each listed transaction.
13. The Exchange imposes a daily price increase and decrease limit on the trading quotes, with a 10% increase rate and a 10% decline rate, quotes outside the range are considered as invalid quotes.
The calculation formula for the daily price increase and decrease price is: price increase and decrease price = previous closing price × (1 ± increase or decrease ratio). The calculation results are taken to the smallest unit of price change according to the rounding principle. The absolute value of the difference between the price limit and the previous closing price is lower than the minimum price change unit. The previous closing price increases or decreases. The minimum unit of price change is the price limit. According to the needs of market development, the Exchange can adjust the proportion of daily fluctuations and control trading risks.
14. The Exchange can adjust the normal price increase (fall) of each listed transaction according to the market conditions.
15. For publicly listed commodities, the price limit for the first day of listing is 80%-130% of the commodity’s offer price. According to the development needs, the Exchange can adjust the ratio of the price increase on the first day of the commodity listing.
16. The Exchange can adjust the proportion of the first day of the commodity listing according to the market conditions.
Chapter VI Initial Ginseng Offering (IGO) limit system
17. The Exchange implements the limit system for Initial Ginseng Offering.
18. The maximum number of transactions in a single declaration must not exceed 5% of the total amount of the commodities sold. According to the transaction needs, the Exchange can adjust the maximum number of transactions in a single declaration.
19. The real-time accumulated net purchase amount (the difference between the cumulative increase and the accumulated reduction) or the real-time accumulated net sales (the difference between the cumulative reduction and the cumulative increase) of the trading member on the day cannot exceed 10% of the total amount of the commodity.
20. The Exchange reserves the right to determine the IGO limit for each trading member according to the market conditions of different trading varieties.
21. In order to protect the market stability and control the risk of trading members, the Exchange has the right to restrict the relevant trading varieties or trading members ‘ trading rights according to the abnormal trading situation of a certain trading variety or a trading member.
Chapter VIII Exchange employees self-discipline system
22. In order to improve the professional ethics of employees, the Exchange has continuously strengthened staff professional ethics education, strict internal audit, strictly controls the professional ethics risk.
23. The Exchange strictly prohibits the employees of the company from participating in the IGO and trading of the listed wild ginseng commodities directly or under a pseudonym or in the name of others, and the immediate family members of the employee (parents, spouses, children and spouses) shall not participate in the IGO and trading of the commodities.
Chapter IX Risk Warning System
24. The Exchange implements the risk warning system. When the Exchange deems it necessary, it may take one or more of the measures such as requesting member report, talk reminder, written warning, public condemnation, and issuing a risk warning notice to warn and control the risk.
25. In one of the following situations, the Exchange may request a trading member to report the situation or meet with a member to remind the risk:
(a) Abnormal changes in trading prices;
(b) Trading member trading behavior is abnormal;
(c) Trading members’ positions and funds are abnormally changed;
(d) Trading members suspected of violating the law, involving judicial investigations or litigation cases;
(e) Other circumstances as determined by the Exchange.
If the Exchange requires trading members to report the situation, the trading member shall report truthfully according to the time, content and method required by the exchange. If the Exchange implements a reminder of the conversation, the trading member shall perform it carefully according to the time, place and manner required by the Exchange.
26. In one of the following situations, the exchange may issue a risk notification letter to all members:
(a) Abnormal changes in domestic and international trading market;
(b) Trading members suspected of violating the rules;
(iii) There is a greater risk of membership trading;
(d) Other anomalies identified by the Exchange.
Chapter X Abnormal Situation Handling
27. If one of the following transaction anomalies occurs, causing some or all of the transactions to fail, we may decide to suspend the transaction:
(i) force majeure;
(iii) technical failure;
(iv) Other anomalies identified herein.
28. The Exchange may suspend trading when there is an abnormal transaction in which the number of trading members that have been interrupted by the market transmission or cannot be declared exceeds 10% of the total number of trading members.
29. If the transaction is deemed to be abnormal and will seriously affect the normal conduct of the transaction, the suspension transaction may be imposed.
30. The Exchange shall announce the decision to suspend the transaction. After the suspension of the transaction is eliminated, the Exchange may decide to resume the transaction.
31. Except for the special circumstances identified by the Exchange, if the transaction resumes on the day after the suspension of the transaction, the declaration accepted by the trading system before the suspension of trading is valid. The trading system continues to accept declarations during the suspension of trading, and quotes that have been issued when the transaction resumes on the same day continue to be valid.
32. The Exchange is not liable for any losses caused by abnormal trading conditions and corresponding measures taken by the Exchange.
Chapter XI Annex
33. The right to interpret of these measures belongs to Singapore Global Ginseng Exchange Pte. Ltd.
34. These measures shall be implemented from the date of promulgation.
Singapore Global Ginseng Exchange Pte. Ltd.
25 July 2018