1. Promoting Business Innovation and Improving the Economic Capability of Service Entities

(1) Promoting product business innovation and opening to the outside world, expanding the breadth and depth of services

In 2018, ZCE steadily promoted the research and development of futures and options such as jujube, coffee, urea, staple fibre, soda ash, cotton and PTA, continued to do a good job in the research and development of new products such as commodity index futures, and further expanded the breadth and depth of service to the real economy. On-line integrated business platform smoothly, steady launch of warehouse receipt trading and base trade business. We will promote the opening-up work in an orderly manner, innovate and introduce the export service provider system and warehouse receipt bidding, implement the appropriate mutual recognition mechanism, establish PTA bonded delivery warehouses, and steadily implement the introduction of PTA to overseas traders.

(2) Improving the Business Rules System and Making Deeply-Carefully listing Varieties

In 2018, ZCE promulgated and implemented the Measures for the Administration of Abnormal Trading Behaviors of Zhengzhou Commodity Exchange and the Measures for the Administration of Accounts Involving Actual Controlling Relationship of Zhengzhou Commodity Exchange, revised and improved the operational rules such as the Measures for the Administration of Risk Control of Zhengzhou Commodity Exchange and the Detailed Rules for Futures Trading of Zhengzhou Commodity Exchange, improved the rules in PTA introducing foreign traders, revised the contract rules for sugar, apple and other varieties, optimized the layout and promotion of delivery warehouses for sugar, rape oil and other varieties, and optimized the expiration date and listing mode of white sugar option contracts.

(3) Optimizing the hedging audit mechanism to facilitate the hedging of industrial customers

We will continue to improve the working mechanism and process of the hedging audit committee, innovate the general monthly hedging approval methods for major varieties, improve the standardization and transparency of the hedging approval, and facilitate the hedging of industrial customers. In 2018, ZCE accepted 1 052 hedging applications from 231 clients, with 9.69 million applications and 7.15 million approval.

(4) Promoting the construction of technical systems and ensuring the safe operation of the systems

In 2018, ZCE formulated the development plan of information technology system, and introduced new artificial intelligence technologies such as machine learning and graph computing to further enhance the efficiency, security and stability of the technology system. Optimize the bilateral quotation of option market maker in trading system, and support the bilateral quotation of futures market maker. Using the new architecture to complete the development of new version of the settlement system online work, greatly improving the settlement efficiency. We will continue to promote the development and construction of technical systems such as the six-phase trading system, delivery, electronic warehouse receipts, membership services, financial supervision and technology applications.

2. Strengthen market supervision and investigate and punish violations of laws and regulations

(1) Implementing the requirements of comprehensive and strict supervision in accordance with the law, and earnestly fulfilling the duties of first-line supervision

In 2018, ZCE continued to strengthen market supervision, strictly investigate and punish violations of laws and regulations in accordance with the rules, and earnestly fulfill the responsibilities of first-line supervision. A total of 423 cases of abnormal trading and illegal trading clues were dealt with throughout the year. 3 cases of suspected illegal trading clues were transferred to the China Securities Regulatory Commission. 60 cases of illegal trading were dealt with. 66 natural and 18 legal customers involved were given warnings and suspension of opening. A total of 552 groups of actual control relationship accounts were identified throughout the year, involving 1471 customers. For seven groups of 37 customers who have actual control relationship but do not falsely declare relevant information, regulatory measures to restrict the opening are adopted in accordance with regulations.

(2) Strengthen the management of delivery warehouses and improve the management mechanism of delivery warehouses

In 2018, ZCE continued to do a good job in the management of delivery warehouse. Through centralized inspection, routine inspection, key spot check, member units assisting exchange inspection and remote video surveillance, the daily supervision of delivery warehouses and commodities will be strengthened. Standard warehouse receipts unified insurance will be continuously implemented to ensure the safety of delivery commodities and to prevent and resolve delivery risks. A total of 243 on-site warehouse inspections were organized throughout the year. Supervision talks were conducted on 4 delivery warehouses. 29 delivery warehouses were suspended or cancelled. 31 delivery disputes involving 7 varieties were handled.