Knowledge Test for Trader Suitability of Specified Futures. Products of Zhengzhou Commodity Exchange

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1 Knowledge Test for Trader Suitability of Specified Futures Products of Zhengzhou Commodity Exchange Single-choice questions 1. Under calendar spread orders, a trader may simultaneously trades two futures contracts that are with ( ) underlying commodity (commodities), of ( ) delivery month(s) and with ( ) trading direction(s). A. the same different the same B. the same different different C. different the same different D. different the same the same 2. ( ) shall refer to the price of a futures contract generated from the auction within five (5) minutes prior to the market open. A. opening price B. closing price C. settlement price D. none of the above 3. At present, the maximum order size per time of a market order shall be ( ) lots on Zhengzhou Commodity Exchange. A B. 200 C. 100 D The settlement price of a futures contract shall refer to the ( ) of the contract. A. the arithmetic mean price of the trading prices on the current day B. the weighted average price of the trading prices on the current day C. the weighted average price of the trading prices generated within five (5) minutes before the market close D. the closing price

2 5. Futures Exchanges usually conduct daily clearing ( ). A. before market open B. during trading hours C. after market close D. at any time 6. Zhengzhou Commodity Exchange will issue margin calls to the members whose balance of the clearing reserve funds is below the minimum threshold after the completion of daily clearing, and the members shall make up the difference between the balance of their clearing reserve funds and the minimum threshold ( ). A. before the market open of the next trading day B. within one (1) trading day C. within two (2) trading days D. within three (3) trading days 7. Zhengzhou Commodity Exchange shall adopt the trading limit system. The trading limit shall refer to the maximum quantity of positions in a futures contract that can be ( ) by a member or a client within a certain period. A. traded B. held C. opened D. liquidated 8. Which one of the following sentences about the price limit system is correct? ( ) A. Zhengzhou Commodity Exchange adopts the price limit system. B. The minimum price limits of all listed futures contracts on Zhengzhou Commodity Exchange shall be ± 7% of the settlement prices of the contracts on previous trading day. C. The trading margins for the positions newly opened during trading hours shall be collected based on the trading margin rate of the current day when clearing. D. Zhengzhou Commodity Exchange shall not adjust the trading margin rates of futures contracts according to market conditions. 9. According to the Measures for the Administration of Abnormal Trading Behaviors of Zhengzhou Commodity Exchange, if the clients or non-futures brokerage members cancel orders for ( ) times or more in the same contract within one (1) trading day and the volume covered by each cancelled order is more than ( ) lots, then such behavior shall be held as abnormal trading of placing and cancelling large orders.

3 A. 40,600 B. 50,800 C. 60,1000 D. 80, The determination and announcement of designated delivery warehouses and premiums or discounts of Zhengzhou Commodity Exchange shall be conducted by ( ). A. clients B. China Futures Association C. members D. Zhengzhou Commodity Exchange 11. Which one of the following choices is the correct way of processing re-inspection requests raised up by the pick-up parties when commodities are being loaded out? ( ) A. The warehouses shall pay the re-inspection fees if the re-inspection results indicating the commodities are qualified for delivery B. Zhengzhou Commodity Exchange shall pay the re-inspection fees if the re-inspection results indicate the commodities are qualified for delivery C. The warehouses shall pay the re-inspection fees if the re-inspection results indicate the commodities are not qualified for delivery D. The pick-up parties shall pay the re-inspection fees if the re-inspection results indicate the commodities are not qualified for delivery 12. Which one of the following organizations should the clients appoint to process the business related to warehouse receipts? ( ) A. delivery warehouses B. banks C. futures brokerage members D. Zhengzhou Commodity Exchange 13. According to the Regulations on the Administration of Futures Trading of the People s Republic of China, the delivery of futures contracts shall be organized and conducted by ( ) in a centralized way. A. futures brokerages B. futures exchanges C. delivery warehouses D. China Futures Market Monitoring Center

4 14. According to the Regulations on the Administration of Futures Trading of the People s Republic of China, a futures brokerage ( ). A. shall present to a client the Statement on Futures Trading Risks and let the client sign to confirm the Statement before it accepts the client s appointment and reach an agreement with the client. B. may conduct futures trading for a client without being appointed. C. may conduct futures trading for a client not according to the brokerage agreement. D. shall promise profits to a client and reach an agreement with the client on sharing profits and risks. 15. According to the Regulations on the Administration of Futures Trading of the People s Republic of China, the legal obligations of futures brokerages shall not include ( ). A. establishing, improving and strictly implementing business management rules B. protecting clients profits C. complying with information disclosure requirements D. protecting the safety of margins deposited by clients True-false questions 16. The price limit shall be adopted for futures trading. The trading price of a contract within a trading day shall not exceed or be lower than the price limit prescribed by Zhengzhou Commodity Exchange. The price quoted beyond the range of the price limit shall be invalid, and contracts cannot be filled at such price. 17. A trader shall, under the principle of caveat emptor, take responsible for the trading results, and shall not refuse to take responsible for the trading results and fulfill their obligations to perform trading contracts on the excuse that it does not meet with the trader suitability criteria.

5 18. Zhengzhou Commodity Exchange does not accept the application for and process fund withdrawal during night session. 19. The RMB funds which are converted from foreign exchange funds can be withdrawn in RMB. 20. Zhengzhou Commodity Exchange shall have the right to conduct forced liquidation of clients positions which have exceeded the position limit. 21. The positions held by a natural person are allowed to be matched for delivery in delivery month. 22. There is no need for clients to submit Pre-Load-in Notice through members when they register warehouse receipts. 23. The price of the PTA futures contract listed on Zhengzhou Commodity Exchange shall be the duty-paid price of the contract in U.S. dollar. 24. According to the Regulations on the Administration of Futures Trading of the People s Republic of China, the resident agencies of the futures regulatory authority under the State Council are not authorized to supervise and administrate the futures market.

6 25. According to the Regulations on the Administration of Futures Trading of the People s Republic of China, an entity or an individual shall not establish any futures brokerage firm to engage in the business of futures or do so in any disguised form without the approval of the futures regulatory authority under the State Council.