In recent years, illegal futures activities have been in a state of frequent occurrence, especially in places where illegal futures trading activities are carried out in the name of commodity spot. They have severely violated the legitimate rights and interests of investors, damaged the reputation of the futures market, and caused adverse effects in society.
In the first half of 2017, the inter-ministerial joint meeting to clean up and rectify various trading venues held the third meeting and the “look back” work exchange meeting respectively, and deployed relevant policies and measures to regulate local trading venues. At the same time, some district courts have successively issued judgments on related illegal futures trading activities in accordance with the law, providing a realistic reference for investors to identify illegal futures trading activities, which has a strong warning effect.
Take an electronic trading platform as an example. As a trading place reserved after the clean-up and rectification, the platform relies on the spot, adopts standardized contract bidding electronic matching, T+0, daily no-debt settlement, leverage, margin, forced liquidation and other trading methods, and collects handling fees for profit mode. However, the general manager of the platform Xie, the deputy general manager Zheng and Chen and other relevant persons involved in the case developed the so-called "market makers" without authorization, and used the platform’s xylitol, liquid caustic soda, glycerin, hydrogen peroxide, formaldehyde, and oxalic acid. Some transaction types and business outsourcing. These market makers continue to develop agents downwards. They jointly open marketing through the Internet, WeChat, telephone, etc., use the background data provided by the platform to provide "correct information" first, and induce customers to increase investment with small profits. Later, the method of providing false market information and manipulating prices in the opposite direction caused investors to suffer substantial losses. The market maker and the platform divide the investor's loss of funds at a ratio of 85% to 15%, and the market maker will divide 85% of the client's losses between it and the agent. According to statistics, Xie, Zheng, Chen and others jointly obtained illegal benefits totaling RMB 79,723,200. In November 2015, the three were sentenced to life imprisonment, thirteen years imprisonment, and seven years imprisonment for fraud by the People's Court, and were fined accordingly.
In cases that have occurred or been judged, criminals often use commodity spot trading as a pretense to induce investors to participate in illegal futures trading activities and cause investor property losses. Investors should be highly vigilant about this, and pay special attention to the following two points: First, commodity spot transactions usually adopt a "one-to-one" method between buyers and sellers to negotiate and determine contractual terms such as varieties, prices, quantities, and delivery dates. Centralized trading methods such as call auctions, continuous bidding, electronic matching, anonymous transactions, market makers, etc., which are prohibited in the documents of Guofa  No. 38 and Guoban Fa  No. 37; second, commodity spot transactions usually require physical delivery , Instead of closing the transaction through settlement of the bid-ask spread. If someone persuades you to participate in "commodity spot trading" that does not meet the above characteristics, please be careful to get involved in illegal futures trading activities, and you can report to the local public security agency.
Article 6 of the "Administrative Regulations on Futures Trading" clearly stipulates that without the approval of the State Council or the approval of the futures regulatory agency of the State Council, no unit or individual may establish a futures trading venue or organize futures trading and related activities in any form. But in reality, due to its special trading system, futures trading is often used by criminals to set up various named spot trading platforms or centers, which is suspected of illegal operation. In fact, to identify illegal futures activities, we only need to consider from the following four perspectives:
One is to identify the subject qualifications. In accordance with the foregoing regulations, the development of futures business requires approval by the China Securities Regulatory Commission to obtain the corresponding business qualifications, otherwise it is an illegal institution. Investors can log on to the website of the China Securities Regulatory Commission and the China Futures Association to inquire about legal futures business institutions and their practitioners, or to verify the information of relevant institutions and personnel with the local securities regulatory bureau.
The second is to identify marketing methods. Some lawbreakers like to call themselves "teachers" and "expected gods", and often make sharp words that just follow him and make a lot of money, etc., which only emphasize profit and not pay attention to risk. Investors need to know that any investment in financial products, including futures, follows the basic principle of "high returns must be accompanied by high risks", and there is no good product with "pie in the sky". Legitimate futures business institutions, guided by the appropriateness system, emphasize "selling suitable products to suitable investors" and must not conduct such false propaganda. When investors encounter such exaggerated propaganda techniques, please be alert.
The third is to identify Internet URLs. The URLs of illegal futures websites are often composed of letters and numbers with no special meaning, or counterfeit methods are used to change or add letters and numbers on the basis of the website of legitimate futures operators. Investors can check the website of legal futures agencies through the website of the China Securities Regulatory Commission or the website of the China Futures Association to identify illegal futures websites. Investors are not allowed to log in to illegal futures websites, so as not to fall into the trap and be deceived.
The fourth is to identify the collection account. Legal futures agencies can only conduct business in the name of the company, and can only open bank accounts in the name of the company, while illegal institutions often open collection accounts in the name of individuals. If someone asks investors to put money into an account opened in their own name, the investor can decisively refuse. (Source: SFC website)