Trading Rules of Shanghai Diamond Exchange
Trading Rules of Shanghai Diamond Exchange
With a view to regulating the trading activities at the Shanghai Diamond Exchange (hereafter referred to as ‘SDE’), and safeguarding the legal rights of all parties involved, these Rules are formulated in accordance with the Constitution for Shanghai Diamond Exchange and relevant laws, by-laws, rules and regulations. All transaction activities at SDE shall abide by these Rules. In case it goes beyond the scope of these Rules, other regulations passed by the membership conference of SDE shall apply.
All trading at SDE shall stick to the principle of being honest and credible. All parties involved shall have the responsibility to keep business secrets for the other party.
The trading venue is within the premises of SDE. The address is Floor 4 and Floor 6 of Jinmao Tower, No.88 Century Boulevard, Pudong New Area, Shanghai.
Trading days are Monday to Friday each week except for legal holidays. Trading hours are from 9:00 am through 5:00 pm.
The scope of trading at SDE is the buying and selling of rough and polished diamonds, and other business permitted by the relevant government authorities.
If diamonds under transaction happen to be treated diamonds, the seller member shall reveal the truth of treatment.
All trading at SDE shall be conducted between members only.
With the verification of SDE and after being filed and validated by the Shanghai Diamond Exchange Administration (hereafter referred to as ‘SDEA’), members can appoint one or two persons to SDE as their representatives.
The Member Representative shall conduct trading and sign the relevant documents and vouchers in the name of the member. The member corporate shall be fully responsible for all the transaction activities of its Representative at SDE.
Should any member wish to change its representative, the member corporate shall present an application for change, this application shall not be valid until it has been checked and registered by SDE, and has been filed by SDEA.
Member representatives (trading partners) shall fill in the Form for Transaction for each concluded trading. This Form for Transaction is regarded as the written voucher for business conclusion.
Non-members shall entrust members as agents for any transaction at SDE.
All diamonds entering and exiting SDE shall go through the customs located within SDE for declaration or filing registry.
The currency designated for all diamond trading is US dollars.
A valid offer shall be one placed in writing indicating the terms and conditions of sale on the outside of a sealed wrapper or envelope containing the relevant goods, and signed by such seller member.
The Chairman of the Supervision Council of SDE shall entrust the President of SDE to appoint specific person as the Director on Duty, such Director on Duty shall be responsible for the order keeping of daily transaction and the mediation and settlement of transaction-related disputes.
The weight of goods determined by the scales of SDE shall be binding upon members, and any dispute concerning the official weight shall be resolved by the Director on Duty and shall be recorded in written form.
Members can settle any dispute during the transaction procedure by themselves. If the members fail to agree upon a settlement on their own, any of them can resort to the Director on Duty for mediation.
If the two parties can reach an agreement or accept the Director on Duty’s mediation, the agreement and mediation shall be taken down in written form and jointly signed by the Director on Duty and the two parties involved. The written record shall be binding upon both parties.
If the two disputing parties can not reach an agreement or refuse to accept the mediation of the Director on Duty, the two parties and the Director on Duty shall take the dispute down in written form with their signatures and apply for arbitration according to the arbitration rules of the Bourse.
These Rules are to be revised if required by more than one third of members or requested by SDEA in accordance with the state’s policies.
The Supervision Council of SDE is responsible for the explanation of these Rules.
These rules shall come into force after the approval of more than two thirds of members at the Membership Conference and the examination by SDEA. It shall be the same case with any revised copy of these Rules.