Report of DCE 2018
1. A smooth start to internationalization, a sustained and in-depth opening-up and a preliminary strategic transformation
2018 is the decisive year for Dalian Commodity Exchange to realize the strategic transformation from a single and closed commodity futures exchange to a diversified and open comprehensive derivatives exchange. First, iron ore futures have been successfully introduced to foreign traders and the first listed variety of domestic futures market has been opened to the outside world. By the end of 2018, 113 overseas customers had opened accounts, of which 77 had participated in the transaction. The average daily turnover of overseas customers was 14.3 million lots, and the highest one-day turnover was close to 65,000 lots. Second, we will accelerate the internationalization of RBD palm olein and soybean futures such as No. 1 soybean, No. 2 soybean. Complete the construction plan of international pricing center for related varieties, actively strive for the establishment of bonded delivery warehouse No. 1 soybean, the participation of imported non-GMO soybean in delivery and other related policy support, and further demonstrate the feasibility of establishment warehouses abroad for RBD palm olein. Third, we should strengthen the cultivation and expansion of overseas markets and deepen the overseas layout of exchanges. Dalian Commodity Exchange have signed memorandums with the Pakistan Business Exchange, Brazilian Valley Corporation and Malaysian FGV Group; successfully organized the "China and Global Derivatives Market Development Forum" with FOW; established the first overseas representative office in Singapore and obtained the Hong Kong Automated Trading Service (ATS) licence.

2. Accelerate the construction of new varieties, new tools and new markets, refine existing varieties, and constantly expand new areas of service to the real economy.
First, the successful listing of ethylene glycol futures, the successful approval of pig futures and corn options, and significant progress in the research of new varieties such as japonica rice and dried pepper, further expand the futures options market development space. Second, we will vigorously promote the construction of the off-site market, take the lead in introducing commodity swap tools in domestic futures exchanges, innovate the replacement business of iron ore warehouse receipts, and continue to expand the pilot business of warehouse receipts series exchange. Third, through improving the delivery standard, innovating the delivery mode, optimizing the delivery layout and other measures, further optimize the contract rules of soybean No. 1, soybean No. 2, corn, corn starch, eggs, coke coal, blockboard, fiberboard and other listed varieties. Fourth, we should actively promote business model innovation, refine futures TRADERS ‘schemes, improve the liquidity of soybean meal, corn, iron ore and soybean No. 2 contracts in recent months, and further improve market efficiency.

3. Effectively strengthen the monitoring of key varieties contracts and properly resolve potential delivery risks

Since 2018, in order to prevent delivery risk, the Dalian Commodity Exchange has effectively strengthened the monitoring and risk early disposal of key varieties contracts, and conducted one by one investigation of unreasonable positions structure contracts in the nearest delivery month. Over 40 risk reminders were given to individual customers during the year, and 161 "Delivery Risk Reminder Letters" were sent to those customers who did not have the ability to deliver. The focus was on inspecting the delivery warehouse and on-site disposal risks for nearly 70 times. The potential delivery risks were resolved in time such us coking coal, coke 1901 contracts, fiberboard and blockboard 1810 contracts, The delivery of the largest or second largest volume of deliveries in history：1805 iron ore contracts of 1.06 million tons and 1807 eggs contracts of 655 tons, has been completed smoothly, and no major delivery risk events have occurred throughout the year..

4. Optimizing the rule system and further strengthening the construction of risk management and market supervision related systems

Firstly, in order to meet the needs of transformation and development of international first-class derivatives exchanges, the rules system of Dalian Commodity Exchange has been optimized according to the framework of "Business Method - Variety Rules". Secondly, in order to ensure the smooth introduction of iron ore to overseas investors, the Risk Management Measures were revised. Third, we will complete the revision of the mandatory reduction of positions system and unify the mandatory reduction of positions for new and old varieties. Fourthly, we should adjust the restrictive position system, relax the restrictive position standards of eight varieties, such as eggs, soybean meal options and iron ore, so as to meet the hedging needs of industrial customers and promote the market function. Fifthly, it promulgates the Measures for the Management of Actual Controlled Relational Accounts, integrates the rules and systems, and clarifies the unified reporting requirements. Sixth, we should accelerate the revision of hedging management methods and risk warning system, integrate abnormal transaction management rules and adjust abnormal transaction monitoring standards. Seventh, we should strengthen the research on risk management and high-frequency procedural transaction supervision in international markets, form a series of research results, and promote international integration.

5. Effectively fulfilling supervision duties, intensifying the handling of illegal and irregular acts, and effectively protecting the legitimate rights and interests of investors
Strictly investigate abnormal and irregular transactions and strengthen the supervision of investors'trading behavior

1) Strengthen the management of abnormal transactions to prevent potential violations from expanding. In 2018, DCE investigated and dealt with 420 abnormal trading activities, including 229 transactions, 178 frequent orders and 13 excess positions in the actual control relationship account group, among which 17 customers or the actual control relationship account group took measures such as restricting opening.

2) Strengthen the investigation and punishment of violations, and do a good job in the investigation and transfer of clues. In 2018, DCE investigated 213 illegal clues, including 109 affecting price clues, 54 over-positioning clues and 50 transferring capital clues. 15 cases were formally investigated and reported to the SFC, and more than 10 supervisory talks were conducted on illegal customers, dealing with more than 200 illegal customers.

3) Implement penetrating supervision and manage the actual control relationship account. In 2018, DCE continued to strengthen the supervision of the actual control relationship account. A total of 404 market supervision inquiries were issued throughout the year, 460 new groups of 1,320 customers declared the actual control relationship, and 71 accounts of 17 suspected actual control relationship groups were added to the key monitoring list. By the end of 2018, the actual control relationship account group reported to DCE totaled 2,768 groups, involving 7,431 customers.

4) Strengthen the supervision of procedural transactions and do a good job in the management of procedural transactions. In 2018, 10,958 new customers fulfilled the procedures of procedural transaction reporting to DCE, involving 141 members, of which 3,603 met the procedural Transaction Recognition criteria. By the end of 2018, more than 140,000 customers had declared procedural transactions to DCE.

5) Optimize the process of hedging approval and improve the management of hedging transactions. Firstly, we should change the thinking of hedge examination and approval and moderately relax the quota examination and approval. A total of 208 hedging qualifications, 420 general monthly hedging opening requirements and 145 delivery monthly hedging opening requirements were audited throughout the year. The second is to strengthen the analysis of hedging and improve the supervision of hedging behavior. Special checks are carried out on hedging behavior, one customer's hedging quota is cancelled, and three customers ‘improper hedging behavior is warned.

一、国际化平稳开局，对外开放持续深入，初步实现战略转型

2018年是大商所实现由单一、封闭商品期货交易所向多元、开放综合性衍生品交易所战略转型的决胜之年。一是铁矿石期货成功引入境外交易者，实现了国内期货市场首个已上市品种的对外开放。截至2018年末，已有113家境外客户开户，其中77家境外客户参与了交易，境外客户日均成交量1.43万手，单日成交量最高接近6.5万手。二是加快推进黄大豆1号、黄大豆2号、棕榈油等期货品种的国际化。完成相关品种的国际定价中心建设方案，积极争取设立黄大豆1号保税交割仓库、进口非转基因大豆参与交割等有关政策支持，进一步论证棕榈油境外设库可行性。三是加强海外市场培育拓展，深化交易所海外布局。大商所与巴基斯坦商业交易所、巴西淡水河谷公司、马来西亚FGV集团等签署合作谅解备忘录；联合FOW成功举办“中国及全球衍生品市场发展论坛”；在新加坡设立了首个境外代表处，并取得了香港自动化交易服务（ATS）牌照。


二、加快推进新品种、新工具和新市场建设，做精做细现有品种，不断拓宽服务实体经济新领域

一是实现乙二醇期货成功上市，生猪期货、玉米期权顺利获批立项，粳米、干辣椒等新品种研究取得重大进展，进一步拓展期货期权市场发展空间。二是大力推进场外市场建设，于国内期交所中率先推出商品互换工具，创新推出铁矿石仓单置换业务，持续扩大仓单串换业务试点。三是通过完善交割标准、创新交割方式、优化交割布局等措施，进一步优化黄大豆1号、黄大豆2号、玉米、玉米淀粉、鸡蛋、焦煤、胶合板、纤维板等多个已上市品种合约规则。四是积极推进业务模式创新，细化期货交易商方案，改善豆粕、玉米、铁矿石和黄大豆2号近月合约流动性，进一步提升市场运行效率。

三、切实加强对重点品种合约监控，妥善化解潜在交割风险

2018年以来，为防范交割风险，大商所切实加强对重点品种、合约监控和风险提前处置，对临近交割月持仓结构不合理合约进行逐一排查。全年对个人客户持仓进入交割月等进行风险提示累计40余次，向不具备交割能力的客户发送《交割风险提示函》161份，重点巡查交割库和现场处置风险近70余次，及时化解焦炭、焦煤1901合约，纤维板、胶合板1810合约的潜在交割风险，平稳完成铁矿石1805合约106万吨、鸡蛋1807合约655吨等历史最大或次大交割量的交割，全年无重大交割风险事件发生。

四、优化规则体系，进一步加强风险管理和市场监管相关制度建设

一是为适应国际一流衍生品交易所转型发展需要，按“业务办法—品种细则”的架构对大商所规则体系进行了优化。二是为保障铁矿石顺利引入境外投资者，对《风险管理办法》等6项制度共53个条款进行修订。三是完成强制减仓制度修改，统一新老品种强制减仓模式，取消过去“逢三必减”相关规定。四是调整限仓制度，放宽鸡蛋、豆粕期权、铁矿石等8个品种限仓标准，满足产业客户套保需求，促进市场功能发挥。五是发布《实际控制关系账户管理办法》，整合规则制度体系，明确统一报备要求。六是加快推进套期保值管理办法、风险警示制度修改，整合异常交易管理规则、调整异常交易监控标准。七是加强国际市场风险管理和高频程序化交易监管研究，形成系列研究成果，促进国际化接轨。

五、切实履行一线监管职责，加大违法违规行为处置力度，有效保护投资者合法权益

严查异常和违规交易，加强投资者交易行为监管

1.强化异常交易管理，防止潜在违规扩大。2018年大商所共查处异常交易行为420起，其中自成交达标229起，频繁报撤单达标178起，实际控制关系账户组超仓13起；对其中17名客户或实际控制关系账户组采取了限制开仓等措施。

2.加大违规行为查处力度，做好线索排查与移送。2018年大商所共排查违规线索213起，其中影响价格类线索109起，超仓类线索54起，转移资金类线索50起；所内正式立案调查15起，上报证监会1起；对违规客户采取监管谈话10余次，处理违规客户200余名。

3.落实穿透式监管，做好实际控制关系账户管理。2018年大商所继续加大实际控制关系账户监管力度，全年发出市场监察问询函404份，新增460组1,320名客户申报实际控制关系，新将17个疑似实际控制关系组71个账户列入重点监控名单。截至2018年末，已向大商所报备的实际控制关系账户组累计达2,768组，共涉及客户7,431名。

4.加强程序化交易监管，做好程序化交易报备管理。2018年新增10,958名客户向大商所履行了程序化交易报备手续，涉及会员141家，其中达到程序化交易认定标准的客户3,603名。截至2018年末累计逾14万名客户向大商所申报了程序化交易。

5.优化套期保值审批流程，完善套保交易行为管理。一是转变套保审批思路，适度放宽额度审核。全年审核套保资格208笔、一般月份套保建仓需求额度420笔、交割月份套保建仓需求额度145笔。二是加强套保分析，完善套保行为监管。对套保行为开展专项检查，取消1名客户套保额度，对3名客户的不当套保行为进行风险警示。