1、Detailed Delivery Rules of Dalian Commodity Exchange (for Public Consultation Only)Chapter I General ProvisionsArticle 1 These Rules are formulated subject to the Trading Rules of Dalian Commodity Exchange for the purposes of guaranteeing the normal carrying-out of the futures delivery business of D
2、alian Commodity Exchange (the “Exchange”) and standardizing the physical delivery.Article 2 The commodity futures contracts listed in the Exchange shall take the form of physical delivery. The physical delivery shall refer to the course in which pursuant to the futures contract and subject to the Ex
3、changes rules, the parties to the trading close the non-liquidated contract(s) through the transfer of the title to the commodities described in the futures contract(s).Article 3 The physical delivery of the clients must be handled by the Member and carried out in the name of the Member at the Excha
4、nge.With respect to the client which engages the overseas broker to carry out the futures trading, its delivery shall be handled through the engagement of its overseas broker which shall then engage the Member to handle such delivery in the name of the Member at the Exchange.Article 4 Delivery shall
5、 be prohibited with respect to any individual clients positions or any non-integral multiple of delivery units of the positions of the coke, coking coal, No.2 soybean or iron ore.As of the first trading day of the delivery month, the Exchange shall carry out the forced liquidation against the positi
6、ons of the individual clients delivery month contracts.With respect to the contracts of the products other than coke, coking coal, No. soybean or iron ore, in case the positions of the individual clients delivery month contracts fail to liquidate or be liquidated after the closing of the market on t
7、he last trading day, the Member shall firstly perform such contracts on behalf of such individual, or in case the Member fails to perform such contracts, the applicable provisions of Chapter 23 hereof shall apply.With respect to the contracts of coke, coking coal, No.2 soybean or iron ore, in case t
8、he positions of the individual clients delivery month contracts or the non-integral multiple of the delivery units fail to liquidate or be liquidated after the closing of the market on the last trading day, the Exchange shall choose the counterpartys positions and carry out the hedging liquidation a
9、t the liquidation price of the delivery settlement price of such contracts under the principle of “the prohibited delivery positions come first, and the integral multiple of delivery units of the positions which include the positions of the shortest time come first”, and a fine of twenty (20) percen
10、t of the contract value calculated at delivery settlement price shall be imposed, and paid to the counterparty, against the portions of the positions which are held by the client and are not permitted to be delivered. In case the hedging parties are the clients holding the positions not permitted to
11、 be delivered, a fine of twenty (20) percent of the contract value calculated at delivery settlement price will be respectively imposed by the Exchange against such parties and will not be paid to each other.Article 5 The business of delivery of the commodity futures contracts listed in the Exchange
12、 shall be carried out subject to these Rules. The Exchange, the Members, the overseas brokers， the clients, the designated delivery warehouses, the designated FOT delivery sites, the designated quality inspection agencies and other delivery business participants shall comply with these Rules.Chapter
13、 II Exchange of Futures for PhysicalsArticle 6 The exchange of futures for physicals (“EFP”) shall refer to that the trading parties which hold the contracts of the same delivery month enter into a physicals sale and purchase agreement through negotiations, and close their respective futures positio
14、ns at the price described therein and exchange the payments and physicals of the corresponding quantities.Article 7 The EFP shall be divided into the warehouse receipt on par EFP and the non-standard warehouse receipt EFP. The warehouse receipt on par EFP shall be divided into the duty-paid warehous
15、e receipt on par EFP and the bonded warehouse receipt on par EFP (the “Bonded EFP“). The provisions of the Detailed Rules for Implementation of Bonded Delivery of Dalian Commodity Exchange with respect to the specific processes of the Bonded EFP shall be applicable.Article 8 Only institutional clien
16、ts may apply for an EFP application. The EFP term for any product other than egg or No. 2 soybean shall be as of the contract listing date through the last but two trading day (inclusive) of the month preceding the delivery month; the term of non-standard warehouse receipts EFP for the egg product s
17、hall be as of the contract listing day through the last but three trading day (inclusive) as of the last trading day; and the term of warehouse receipts on par EFP and non-standard warehouse receipts EFP for the No. 2 soybean product shall be as of the contract listing day through the sixth trading
18、day (inclusive) of the delivery month.Article 9 The following materials shall be submitted to the Exchange after a physicals sale and purchase agreement has been entered into by and between the parties to the trading:(i) An EFP application;(ii) The physicals sale and purchase agreement;(iii) The app
19、licable certification of the payments; and(iv) The applicable certification of the warehouse receipts on par, the entrance receipts, the inventory receipts and other goods ownership certifications.With regard to the product of No. 2 soybean, if the EFP is carried out with warehouse receipt on par an
20、d the corresponding cargo is imported soybean, the inspection and quarantine certificate or inspection and quarantine treatment notice (hereinafter collectively referred to as “inspection and quarantine certification material”) of the inbound goods shall also be submitted.Article 10 In case of any E
21、FP with respect to any warehouse receipt on par, the application shall be filed by the Member to the Exchange prior to or at 11:30 a.m. of the trading day, and the Exchange shall examine for approval of such application on the very application filing day.Prior to or at 11:30 a.m. of the approval day
22、, the selling Member shall submit the warehouse receipts of the appropriate quantities to the Exchange, and the buying Member shall transfer the full payments calculated at the agreed price to the Exchanges account.Article 11 An EFP with respect to any non-standard warehouse receipt shall be examine
23、d for approval by the Exchange within three (3) trading days after the Exchange receives the application.Article 12 The Exchange shall be responsible for handling the handover of the warehouse receipts on par and the payment of the payments with respect to the warehouse receipts on par EFP. The spec
24、ific processes therefor are provided in the Detailed Settlement Rules of Dalian Commodity Exchange and the Detailed Rules for Implementation of Bonded Delivery of Dalian Commodity Exchange. The commissions therefor shall be charged by reference to the standards for the delivery commissions of the pr
25、oducts other than the No. 2 soybean, the commission of which shall be separately announced by the Exchange.Article 13 The handover of the goods and the receipt and payment of the payments with respect to the non-standard warehouse receipts EFP, if handled independently by the parties to the trading,
26、 shall be negotiated and determined by themselves; if the Exchange is entrusted with the receipt and payment of the payments, the specific processes therefor are provided in the Detailed Settlement Rules of Dalian Commodity Exchange. The commissions therefor shall be charged by reference to the stan
27、dards for the trading commissions of the products other than the No. 2 soybean, the commission of which shall be separately announced by the Exchange. No guarantee liability shall be borne by the Exchange for the handover of the goods and the payment of the payments with respect to the non-standard
28、warehouse receipts EFP.An EFP with respect to any non-standard warehouse receipt will obligate the parties to the trading to submit, after the completion of the physicals trading, the certification of the handover of the goods. The parties to the trading shall submit the certification of payment of
29、the payments to the Exchange if the receipt and payment of the payments are handled by themselves. The Exchange shall have the right to supervise and check the conducts of the parties to the trading with respect to the physicals.Article 14 Upon settlement on the EFP approval date, the Exchange shall
30、 settle the EFP positions of the parties to the trading at the agreed price, and any profit or loss shall be included in the then-current day liquidation profit or loss.Article 15 The EFP positions shall be deducted from the then-current day positions, and the trading result shall not be included in
31、 the then-current day settlement price and trading volume. After ending of each trading day, the Exchange shall publish the EFP information of the then-current day.Article 16Any non-bona fide EFP shall be handled pursuant to the applicable provisions of the Measures for Handling of Violations of Dal
32、ian Commodity Exchange.Chapter III Bill of Lading DeliveryArticle 17 The bill of lading delivery shall refer to during the prescribed period of the month immediately preceding the delivery month, the physical delivery of which the handover is carried out upon the initiative application by the seller
33、 and the buyer, under the matching organized by and the supervision by the Exchange and subject to the prescribed procedures.The commodities subject to the bill of lading delivery may be the duty-paid commodities or the bonded commodities. All the commodities subject to the bill of lading delivery u
34、nder a same bill of lading shall be either the duty-paid commodities or the bonded commodities.The iron ore contract may take the bill of lading delivery. The delivery site therefor shall be selected from the delivery sites designated by the Exchange which will be separately published by the Exchang
35、e.Article 18 The bill of lading shall refer to the physicals pickup certification issued by the seller to the buyer after the inventory port confirms the transfer of the title to the commodities on the basis that the buyer completes the inspection of, and confirmation of the conformity of, such comm
36、odities.The contents of the bill of lading shall include the buyers name, the sellers name, the name of the inventory port, the name of the goods, the quantities, the quality, the warehousing site, the status of the goods (duty-paid commodities or bonded commodities), the issuing date and otherwise.
37、 The bill of lading must be confirmed through sealing by the buyer, the seller and the inventory port.Article 19 The bill of lading delivery shall be handled by the Member on behalf of the overseas brokers and clients. The non-futures company Member may handle it by itself. With respect to the clien
38、t which engages the overseas broker to carry out the futures trading, its bill of lading delivery shall be handled through the engagement of its overseas broker which shall then engage the Member to handle such delivery.The total quantities of the bill of lading delivery applications filed by the cl
39、ient shall not exceed its positions of the same direction. The quantities of each bill of lading delivery application of the iron ore contracts shall be ten thousand (10,000) tons or the integral multiple thereof.Article 20 The bill of lading delivery application and matching shall be subject to the
40、 following procedures:(i) During the period as of the tenth trading day of the month immediately preceding the delivery month through the fourteenth trading day of the month immediately preceding the delivery month, the buying client may file, through its Member and prior to the closing of the marke
41、t on each trading day, more than one intent application containing the quantities and the handover site(s); only one handover site is permitted for each application. The Exchange shall summarize the buyers application quantities and sites after the closing of the market on the then-current day, and
42、publish them through the electronic warehouse receipt system, the Exchanges website or otherwise.(ii) Prior to or at 14:00 of the second trading day after the buyer files the intent application, the selling client may file, through its Member and on the basis of the buyers intent published on the pr
43、eceding trading day, more than one intent application containing the quantities and the handover site(s). Such application may contain the intent buyers for reference upon matching, and each application may contain two (2) intent sites and two (2) intent buyers to the maximum.(iii) The matching day
44、shall be the day when the seller files the application. After the closing of the market on the matching day, the Exchange shall organize the matching under the principle of the maximum delivery quantity by reference to the intent buyers and intent sites proposed by the seller. No determined matching
45、 result may be modified by the buyer or the seller.Article 21 After the closing of the market on the matching day, the delivery matching positions shall be liquidated at the settlement price of the matching day. The delivery settlement price shall be the then-current day settlement price of the matc
46、hing day. The trading margins of the buying positions shall be transformed to be the delivery advances, and the trading margins of the selling positions shall be transformed to be the delivery margins.Upon filing an application, the client shall concurrently inform the Exchange of the contact person
47、s and their contact information. After the closing of the market on the matching day, the Exchange shall send the matching results, the contacts and the contact information respectively to the buying Member and the selling Member through the electronic warehouse receipt system. The matching results
48、will be at the same time published through the website of the Exchange and in other ways. Sending thereof shall be deemed to be completed upon sending by the system. After receipt of the matching information, the buyer and the seller shall proactively communicate with each other and negotiate the ha
49、ndover of the goods.Article 22 The notification date shall be the third calendar day preceding the vessel arrival at the port or the inspection of the goods already at the port or in case the third calendar day does not fall on a trading day, the immediately preceding trading day.The selling Member shall send to Exchange through the electronic warehouse receipt system the delivery site, the estimated date of the goods arrival at the port, the quantity, the name of the vessel, the bill of lading number, the status of the goods (duty-paid commodities or bonded commodities) and otherw
