[DCE] Notice on Program Trading
To members and entities:
To clarify the reporting requirements and transitional arrangements for program trading on Dalian Commodity Exchange (“DCE”), strengthen the supervision of program trading, regulate program trading activities, and safeguard the futures trading order and market fairness, the following notice is hereby announced in accordance with the Measures for Management of Program Trading of Dalian Commodity Exchange (“the Measures”).
I. Reporting of Program Trading
(I) Who Needs to File a Report
A trader on DCE is required to fulfill reporting obligations if he/it meets one or more of the following criteria:
1. Placing and canceling ten or more orders within 1 second for ten or more times on any particular trading day. For the purpose of this rule, accounts with actual control relationship are treated as one single account;
2. Letting a computer automatically determine all the critical elements of a trading order such as contract trading code, buy/sell direction, order size, and order price as well as the timing of such order;
3. Using a self-developed or customized program trading software; or
4. Falling under other circumstances that, in the opinion of DCE, requires the filing of a report.
(II) What Information to Report
1. Basic account information, including trader’s name, trading code, product manager, and the entrusted Futures Company Member, Overseas Special Brokerage Participant (OSBP), or Overseas Intermediary;
2. Trading and software information, including the method of executing trading instructions and the name, basic functions, developer of the trading software, etc.; and
3. Other information required by DCE.
A program trader must file an update report within 30 trading days after any major change to the previously reported information.
Every program trader should ensure the information he/it reports is true, accurate, and complete. The relevant Futures Company Member, OSBP, and Overseas Intermediary must review the reported account, trading, and trading software information, among others. If it is correct, the Futures Company Member and OSBP should submit the report to DCE within five trading days, and the Overseas Intermediary should also do so within five trading days through the relevant Futures Company Member and OSBP.
Additionally, Futures Company Members, OSBPs, and Overseas Intermediaries should review the information reported by a client of program trading every six months or as required by DCE. They should supervise the client to take corrective actions in a timely manner if the client fails to file a report as required, and, pursuant to their Entrustment Agreement for Program Trading, refuse to open new positions for any client that refuses to make corrections.
(III) How to File a Report
Each client of program trading should file reports in accordance with the requirements of the Measures. Futures Company Members, OSBPs and Overseas Intermediaries should report clients’ program trading information to DCE through CFMMC’s filing system in accordance with the Notice on the Launch of China Futures Market Monitoring Center’s Program Trading Reporting System.
Non-Futures Company Members and OSNBPs should report the relevant information to DCE through DCE’s member service system before engaging in program trading.
Reporting requirements for high-frequency traders will be announced through a separate DCE notice.
II. Transitional Arrangements
The following arrangements apply to Futures Company Members, OSBPs, Overseas Intermediaries, and traders that already engage in program trading before October 9, 2025.
1. Before April 8, 2026, each such Futures Company Member must enter into Entrustment Agreement for Program Trading with each client to set out their rights, obligations, and requirements in relation to reporting and risk control. This applies similarly to any OSBP and Overseas Intermediary that accepts program trading entrustments from a client.
2. Traders must report program trading information in a truthful, accurate, and complete manner through the designated channels. Starting from April 9, 2026, traders who fail to report program trading through the designated channels will not be allowed to engage in program trading.
3. For high-frequency traders or those frequently involved in erroneous orders or other abnormal behaviors, DCE may require the relevant Futures Company Members and OSBPs to test the technical systems they use for program trading. Futures Company Members and OSBPs may conduct these tests themselves or through a third-party testing agency.
III. Supervisory Requirements
For any program trader that violates applicable rules, DCE will order the trader to make corrections and may take additional measures such as delivering telephone thinkive,requiring an explanatory report,adding to the key supervision list,arranging for a talk,restricting the opening of positions. For any Futures Company Member, OSBP, or Overseas Intermediary that violates applicable rules, DCE will order it to make corrections and may take additional measures such as delivering telephone thinkive, arranging for a talk, issuing a regulatory warning letter, or issuing a regulatory opinion letter. Severe violations will be handled in accordance with the Measures against Rule Violations of Dalian Commodity Exchange.
Attachments:
1.Reporting Form for Futures Market Clients of Program Trading.xlsx
2.Instructions for the Reporting Form for Futures Market Clients of Program Trading.doc
Dalian Commodity Exchange
August 8, 2025
For more details, please refer to the links: