Notice of Zheng Shang Institute on Soliciting Market Makers of Cotton Options

Zhengzhou Commodity Exchange (hereinafter referred to as Zhengshang Institute) is now openly soliciting cotton option market makers. The relevant matters are notified as follows:

1. Application conditions

Zhengshang Institute's option market maker qualification is managed according to varieties. To apply for the qualification of cotton option market maker, the following conditions shall be met:

(1) The net assets shall not be less than RMB 5 million;

(2) There are specialized institutions and personnel responsible for market-making business, and the market-making personnel should be familiar with the relevant laws and regulations on futures and options and the business rules of the exchange;

(3) It has a sound market-making business implementation plan, internal control system and risk management system;

(4) It has no record of major violations of laws and regulations in the last three years;

(5) having a stable and reliable market-making business technology system;

(6) Having experience in market making for option trading or option simulation trading recognized by the Exchange;

(7) Other conditions stipulated by China Securities Regulatory Commission and the Exchange.

II. Application materials

(1) An application form for the qualification of a market maker, which is signed by the legal representative and stamped with the official seal of the unit (Annex 1);

(2) a copy of the business license stamped with the official seal of the unit;

(3) The original audited financial report for 217 or a copy stamped with the official seal of the accounting firm;

(4) the post setting and responsibilities of the market-making business department, and the names and resumes of the responsible persons and relevant personnel engaged in market-making business (see Annex 2 for the summary of post setting and personnel, and detailed resumes are required for the main personnel in relevant positions);

(5) the implementation plan, internal control system and risk management system of the market-making business of the applied varieties;

(6) a letter of commitment with no record of major violations of laws and regulations in the last three years (Annex 3);

(7) description of market-making business technology system;

(8) explanation of the market-making situation of option trading or option simulation trading (applicants who have participated in the firm market-making of options on domestic exchanges are required to provide the market-making business of relevant varieties in the latest year, the annual appraisal results and their certificates; Other applicants are required to provide the simulation trading activities, relevant appraisal awards and their certificates that they participated in within two years (Annex 4);

(9) Other materials required by the Exchange.

the above materials shall be submitted in electronic form and in written form. When applying for the qualification of cotton option market maker, a white sugar option market maker shall submit supplementary written materials required in items (1), (3), (4), (5), (8) and (9) to the Exchange.

iii. solicitation process

(1) sign up for the technical test. Applicants who meet the above requirements in self-examination should contact Zhengshang Institute, access the simulated trading environment of cotton options before July 16, and conduct business tests and special tests (see Annex 5 for test requirements).

(2) submission of materials. Zhengshang Institute will accept application materials from now on, and the deadline is July 16, 218. Requirements for submission of materials:

1. The electronic materials are packaged and sent to the designated mailbox, and the documents are unified as "Application Materials for Market Makers of Cotton Options of XX Company", in which items (1), (2), (3) and (6) provide scanned copies, and other materials provide scanned copies of electronic files and their home pages (with official seals);

2. The order of paper materials shall be subject to the above number, and each item shall be stamped with the official seal of the applicant. Items with multiple pages of materials can be stamped on the home page, and a list of materials shall be attached.

both electronic materials and paper materials need to be confirmed by phone after submission.

(3) Pre-examination of materials. According to the materials received, Zhengshang Institute will pre-examine the conditions of the applicant. If the application materials are incomplete and do not meet the requirements, they cannot participate in the follow-up qualification review.

(4) submit the test report. The applicant who has passed the pre-examination shall submit the corresponding test report and the opinions of the futures company as required.

(5) on-site inspection. The applicant that has passed the pre-examination shall be inspected by Zhengshang Institute in terms of its technical system, personnel situation and internal control system.

(6) qualification determination. According to the assessment rankings and submitted materials of existing white sugar option market makers since January 218, Zhengshang Institute has determined that some white sugar option market makers are cotton option market makers; For the white sugar option market makers and other applicants who fail to determine the qualification of cotton option market making according to the assessment ranking, Zhengshang Institute will make a comprehensive score according to the above process and determine it according to the ranking.

announce to the market after the qualification of cotton option market maker is confirmed.

Tel: 371-6561312, 371-65612893

Market maker QQ group: 422987949, 32344743

Mailing address: Futures Building, No.3 Business Outer Ring Road, Zhengdong New District, Zhengzhou

Postal code: 4518; E-mail: lvtong@czce-kom

is hereby notified.

Appendix 1. Application Form for Qualification of Option Market Maker of Zhengshang Institute

2. Summary of Position Setting and Personnel of Option Market Maker

3. Commitment Letter

4. Summary of Market Making in Real Trading or Simulated Trading

5. Requirements for cotton option market maker applicant to participate in simulated trading activities

Zhengzhou Commodity Exchange

July 5, 218.