The Shanghai Futures Exchange on July 8 released the international version of its business rules, a decisive move to align its institutional architecture with global norms and to prepare for broader participation by overseas entities in China's commodity derivatives market.

The initiative introduces a comprehensive overhaul of the Exchange's regulatory framework, encompassing the formulation and revision of 35 second-tier rules.

Notably, it establishes a new regulation dedicated to the administration of overseas participants, creating a formal entry pathway for international players — including institutional investors, brokers, and end clients.

Fifteen core business management provisions, including those governing Exchange membership, have been significantly revised. In parallel, 19 sets of contract-specific rules have been updated, with aluminum futures among the instruments affected.

The revised framework fortifies five pillars of market operation:

Market access: Eligibility standards, rights, duties, and compliance protocols have been codified for international participants seeking to engage in the domestic futures market.

Trading: Operation norms have been clarified to support seamless participation by overseas entities in onshore commodity trading.

Risk management: Risk control protocols applicable to non-domestic entities have been refined to ensure parity and transparency across all types of participants.

Clearing: A renminbi-based clearing structure has been introduced, permitting the use of foreign currency collateral. Tiered and entrusted clearing models have been implemented, accompanied by strengthened account and fund flow supervision.

Delivery: Procedures governing non-deliverable positions and end-to-end delivery oversight have been formalized to ensure regulatory coherence and execution integrity.