Since 2021, illegal futures activities have been in a state of high incidence, especially in the name of commodity futures, illegal trading activities have been repeatedly prohibited, which has seriously infringed on the legitimate rights and interests of investors, damaged the reputation of the futures market, and caused adverse effects in society.
About Shanghai Huatong Platinum and Silver Trading Market
Shanghai Huatong Platinum UnionPay belongs to the CFD transaction, requiring investors to enter the company's account but is not a third-party bank custody, but the Shanghai Huatong Platinum Silver Trading Market platform requires investors to enter their own companies, typically violating the control measures of the China Futures Association, followed by the current domestic can only trade futures in the five major exchanges and member units stipulated by the state, namely Shanghai Futures Exchange, Dalian Commodity Exchange, Zhengzhou Commodity Exchange, Shanghai Energy Exchange and China Financial Futures Exchange In addition, no domestic and foreign platforms are allowed to trade futures, spot, indexes and other products, and the platforms that open such transactions without authorization are all privately built, are not subject to the supervision of the Regulatory Commission and the China Futures Industry Association, and there is no security guarantee for investors who are illegally building platforms! The Shanghai Huatong Platinum and Silver Trading Market, which is queried on the website of the China Futures Association, does not belong to the futures trading company on the record, and is a typical illegal platform.
Explanation of irregularities in the Shanghai Huatong Platinum and Silver Trading Market
Shanghai Huatong Platinum and Silver Trading Market, as a trading venue retained after the liquidation and rectification, the platform relies on spot, adopts standardized contract bidding electronic matching, daily debt-free settlement, leverage, margin, forced liquidation and other trading methods, and collects handling fees as a profit model. However, the platform personnel developed the so-called "market maker" without authorization, outsourcing the silver trading varieties and business of the platform. These market makers continue to develop agents downwards, they jointly through the Internet, WeChat, telephone and other ways of open marketing, using the background data provided by the platform, using the first to provide "correct intelligence", with small profits to induce customers to increase investment, and then provide false market information, reverse price manipulation, resulting in large losses for investors. The market maker and the platform divide the investor's loss funds according to the ratio of 85% to 15%, and the market maker divides the 85% of the customer losses obtained with the agent.
Shanghai Huatong Platinum and Silver Trading Market often uses commodity futures trading as a pretext to induce investors to participate in illegal futures trading activities, resulting in property losses to investors. Investors should be highly vigilant in this regard, and pay special attention to the following two points: First, commodity futures trading usually adopts a "one-to-one" approach between buyers and sellers to negotiate and determine the variety, price, quantity, delivery date and other contract terms, and cannot take the centralized trading methods such as collective bidding, continuous bidding, electronic matching, anonymous transaction, and market maker prohibited by Guo Fa [2011] No. 38 and Guo Ban Fa [2012] No. 37; second, commodity spot trading usually requires physical delivery. Instead of closing the transaction by settling the bid-ask spread. If someone persuades you to participate in "spot trading of commodities" that is inconsistent with the above characteristics, please beware of being involved in illegal futures trading activities and report it to the public security organs.
The establishment of an illegal futures trading platform is suspected of illegal operation
Article 6 of the Regulations on the Administration of Futures Trading clearly stipulates that without the approval of the State Council or the approval of the Futures Regulatory Authority under the State Council, no unit or individual may establish a futures trading venue or organize futures trading and related activities in any form. However, in practice, because of its special trading system, futures trading is often used by criminals to set up spot trading platforms or centers under various names, which is suspected of the crime of illegal business operation.
Four steps to identify illegal futures activities
The first is to identify the qualifications of the subject. According to the above provisions, the development of futures business needs to be approved by the China Securities Regulatory Commission and 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 website of the China Futures Association to inquire about the information of legitimate futures business institutions and their practitioners, or 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 think of themselves as "teachers" and "gods of expectation", and often issue sharp words such as making a lot of money as long as they follow him, they can make a lot of money, and only emphasize the benefits and do not pay attention to risks. Investors need to know that any financial product investment, including futures, follows the basic principle of "high returns must be accompanied by high risks", and there is no good product that "pie in the sky". Legal futures business institutions are guided by the appropriateness system and pay attention to "selling suitable products to suitable investors", and they are not allowed to carry out such false publicity. Investors encountering such exaggerated publicity methods, please pay attention to be vigilant.
The third is to identify Internet urns. The web sites of illegal futures websites are often composed of letters and numbers with no special meaning, or use counterfeiting methods to change or add letters and numbers to the websites of legitimate futures operators. Investors can check the website of legal futures operators through the website of the China Securities Regulatory Commission or the website of the China Futures Association to identify illegal futures websites. Investors should not log on to illegal futures websites to avoid falling into the trap.
The fourth is to identify the receiving account. Legal futures business institutions can only carry out 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 an investor is asked to put money into an account opened in his or her name, the investor can decisively refuse.
This article is written exclusively by Mo Yubin, hoping to help those friends who have been pit in futures trading through this article, and for victims who have experienced the above situations, they can contact the author for help.