The Shanghai Futures Exchange ("SHFE") recently issued the Administrative Measures for Trading of Standard Warehouse Warrants (for Trial Implementation) (Amendment) (the "Measures"), which shall come into force as of September 3, 2020.

Pursuant to the Measures, the revision involves the access system for warehouse warrant traders, trading system, clearing system, settlement system, online pledge, the treatment for breach of agreements and provisions, information management and other contents. The "Chapter VII Pledge Business", comprising Articles 61 through 69, is newly added to the Measures. Specifically, additional provisions "the exchange shall, as per the pledge financing contract between a warehouse warrant trader and a lending bank, provide both parties with services such as the online pledge registration of standard warehouse warrants and the sales and pledge of standard warehouse warrants. The standard warehouse warrants of the pledge business shall be those in an electronic form. The standard warrants not specifically referred to in this chapter are standard warehouse warrants" are inserted into the Chapter. Several original articles including Articles 2, 3, 6 and 7 are amended in the Measures.

(Source: www.shfe.com.cn)