Zhengzhou Commodity Exchange (ZCE) is the first experimental futures market approved by the State Council and one of the four futures exchanges in China under the direct management of China Securities Regulatory Commission.
ZCE performs its obligations in accordance with "Administrative Regulations on Futures Trading" and "Futures Exchanges Regulations"; conducts self-regulatory management based on "Regulations of Zhengzhou Commodity Exchange", "Trading Rules of Zhengzhou Commodity Exchange" and relevant detailed rules; organizes futures trading in compliance with the principles of "Openness, Impartiality and Justness" and "true and fair"; provides market site, facilities and relevant services to futures transaction; and regulates futures transaction at front line..
ZCE adopts membership system. Members Assembly is the authority organization at ZCE, which consists of all members. Board of directors is the standing body Members Congress, which consists of 7 special committees including compliance committee, trading committee, delivery committee, finance committee, conciliation committee, membership credential committee and IT committee. By the end of year 2009, 215 firms have been approved as ZCE member firms, in which 173 firms are futures companies, accounting for 80% of total member firms; the other 42 firms are non-futures companies, accounting for 20% of total member firms.
The president acts as ZCE’s legal representative. According to functional requirement, ZCE has set up 16 internal departments including General Office, R&D, Marketing I, Marketing II, Trading, Delivery, Clearing, Market surveillance, Media Relationship and Information, Legal Affairs, IT I, IT II, Finance, HR, Internal Audit and Administration.
So far, ZCE has listed 6 commodities as represented by wheat (including strong gluten wheat and hard white wheat), cotton, sugar, PTA (Pure Terephthalic Acid), Rapeseed Oil and early rice. The listed commodities are widely recognized for their functions and roles in promoting industrial economy development.
ZCE practices margin system, daily price limits, daily non-liability clearing method, physical delivery, etc. In order to adapt to the requirement of market development, ZCE continuously optimizes its regulation system, updates regulation concepts and enriches regulation methods so as to control and reconcile market risks and ensure stable market operation.
ZCE possesses optimal e-system of trading, clearing, delivery, risk control, information release and member service. Each trading day, Reuters, Bloomberg, Shihua and other quotation systems release real-time ZCE futures market quotation simultaneously worldwide.
ZCE values intercommunication and cooperation with international futures industry. In June 1995, ZCE joined in IOMA. In the past, ZCE has signed MOU with Kansai Commodity Exchange, CBOE, NYBOT (ICE futures US), BM&F Bovespa, CME, CBOT (CME Group), Tokyo Grain Exchange, National Multi-Commodity Exchange, Montreal Exchange (Toronto Stock Exchange), Abuja Securities and Commodities Exchange and NYSE-Euronext. At present, ZCE established information exchange mechanism with 8 exchanges and organizations to exchange market information periodically, which further expands ZCE’s international influence.
In the future, ZCE will endeavor to establish a modern exchange with important position and great influence on domestic and world market by insisting on "Openness, Impartiality and Justness" principle, orienting to "fair, initiative, safe and efficient", aiming at futures market thoroughly servicing industrial economy, enhancing market system infrastructure construction, perfecting risk control mechanism, strengthening front line regulation, ensuring safety of IT system, improving quality of market operation and development.