Regulatory Standards and Procedures on Unusual Transactions

In order to regulate trading behavior and protect the interests of users on AOFEX, AOFEX has formulated “Regulatory Standards and Procedures on Unusual Transactions” as below:

Part One: Unusual transactions stipulated by exchanges

1. Excessive trading: The trading volume within 24 hours is considerable;
2. Self-dealing;
3. Merging the actual controlled joint accounts and holding more amount than the limit position set by the exchange;
4. 4. Use of reverse, knocking and other means of trading on the actual associated account, manipulation of market prices for illegal profits;
5. Account stealing: the customer violates the rules by stealing other users’ accounts and passwords, or using the associated account for illegal transactions and transfer funds;
6. Scalping with the account and associated accounts;
7. Quantitative transactions in violation of regulations;
8. Using own accounts, or multiple accounts for AB warehouse trading;
9. High frequency trading or illegal quantitative trading and arbitrage trading;
10. In the actual associated account, abnormal convergence.

Part two: the type and characteristics of the knocking transaction.

1. Pirates transaction

Pirate transaction refers to the use of the transaction password of the other person to steal the transaction between the client and the controlled account, which disrupts the transaction management order and achieves the purpose of transferring funds;

2. Linking accounts and knocking transactions

In two or more related accounts, by pre-planning or prior agreement with others, at the same time. For example, declaring the same price, an account buys with high price and sells at low price; or buys at low price and sells at high price, resulting in obvious loss or high profit. The actions of transferring the funds of the principal's account to its associated account;

3. The client is transferred to the client's account fund by means of a knocking transaction.

The act of the client using the client's account to conduct a mutual counterparty transaction with his or her own account, thereby transferring the funds of the client's account to its own account;

4. 4. The confirmation of the associated account: similar registration time, same registered IP, same deposit and withdraw address.

Part three: the type and characteristics of scalping, AB warehouse, and violation transactions with high frequency:

1. Multiple related accounts, in the same time period, the same variety, the same direction, the approximate proportion of the lot, the similar opening price, the similar closing price for the order transaction.
2. Using the same account, or multiple associated accounts, in the same time period, the same variety, different directions, similar proportions of hands, using manual or pending transactions, open and close operations.
3. Open a position to close the transaction in an extremely short period of time such as within three minutes.

Part four: For the customer to take measures against the knocking, scalping and other violations of the rules:

      According to the relevant rules of the exchange, the exchange will impose certain penalties on users who violate the rules, such as ordering corrections and confiscation of illegal gains. If the case is suspected to be lighter, AOFEX give warnings, forcibly close the position and suspend the opening of the position and other penalties; if the circumstances are serious, AOFEX will publicize the criticism, forcibly close the position, suspend the opening of the position, freeze the account, declare it as "market forbidden", and list as punishment measures; if there is an act of suspected violation of the laws of the country where the country is located, the exchange will take measures such as legal transfer to the judicial organs and prosecution through the courts.

Team AOFEX