[CFFEX] Notice on Matters Related to Program Trading
To clarify the reporting requirements and transitional arrangements for program trading on China Financial Futures Exchange (the “Exchange”), strengthen the oversight of program trading, regulate program trading activities, and maintain an orderly and fair futures market, the following notice is hereby given in accordance with the Measures of China Financial Futures Exchange on the Management of Program Trading (“Program Trading Measures”).
I. Reporting of Program Trading
(I) Who Needs to File a Report
Traders shall fulfill the reporting obligation if their trading activities on the Exchange meet one or more of the following conditions:
1. Placing and canceling 10 or more orders within 1 second on 10 or more occasions on any particular trading day. For a group of accounts under actual control relationship, the number of order placements and cancellations shall be counted on a single-client basis;
2. Letting a computer automatically determine all the critical elements of a trading order including contract code, buy/sell direction, order size, and order price as well as the placement 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 the Exchange, requires the filing of a report.
(II) What Information to Report
1. Basic account information, including trader’s name, trading code, manager of the relevant investment product (vehicle), and the trader’s carrying futures-company member;
2. Information about trading and the trading software, including the method of order execution and the name, basic features, and developer of the trading software; and
3. Other information required by the Exchange.
A program trader must file an update report within 30 trading days after any major change to the previously reported information.
Program traders should ensure the information they report are true, accurate, and complete. The relevant futures-company members must review the reported account, trading, and trading software information, among others. If verification is successful, the futures-company members should submit the report to the Exchange within five trading days.
Additionally, futures-company members should review the information reported by program trading clients every six months or as required by the Exchange. They should supervise a client to take corrective actions in a timely manner if the client fails to file a report as required, and, pursuant to their program trading service agreement, refuse to open new positions for any client that refuses to make corrections.
(III) How to File a Report
Program trading clients should file reports in accordance with the requirements of the Program Trading Measures. Futures-company members should report clients’ program trading information to the Exchange through CFMMC’s filing system in accordance with the Notice on Matters Related to the Launch of China Futures Market Monitoring Center’s Program Trading Reporting System.
Non-futures-company members should report the relevant information to the Exchange through the Participant Service Platform before engaging in program trading.
Reporting requirements for high-frequency traders will be announced by the Exchange through a separate notice.
II. Transitional Arrangements
The following arrangements apply to futures-company members and traders that have already engaged in program trading before October 9, 2025.
1. By April 8, 2026, futures-company members must enter into a program trading service agreement with their clients to set out the rights and obligations of both parties, and clarify requirements for reporting, risk management, etc.
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 and those frequently involved in erroneous order placement or other abnormal behaviors, the Exchange may require the relevant futures-company members to test the IT systems they use for program trading. Futures-company members may conduct these tests themselves or through a third-party testing agency.
III. Supervisory Requirements
For any program trader that violates applicable rules, the Exchange will order the trader to make rectification and may take additional measures such as issuing telephone reminders, requiring reporting, conducting cautionary interviews, or restricting the opening of positions. For any futures-company member that violates applicable rules, the Exchange will order it to make rectification and may take additional measures such as issuing verbal reminders, issuing written admonishments, or conducting cautionary interviews. Severe violations will be handled in accordance with the Measures of China Financial Futures Exchange on Dealing with Violations and Breaches.
Attachment:
1.Reporting Form for Futures Market Program Trading Clients
2.Instructions for the Reporting Form for Futures Market Program Trading Clients
China Financial Futures Exchange
August 8 , 2025