Update on Indices Computation Rules & Indices Constituents for Futures Trading

Dear valued customers,

To prepare for the launch of our mark price system and to the stability of the futures market, we will update the indices computation rules and indices constituents for futures trading at 11:00 Nov 13, 2018 (CET). After the update, the indices may vary slightly due to the changes of the constituents. All futures traders and C2C traders who place orders based on index price are recommended to read this notice carefully and make necessary risk management operations. Please see the details of the update below:

1.The index constituents (exchanges and trading pairs) BEFORE the update:

2.The major updates on the rules:

a.Increased frequency: data is now retrieved live and continuously instead of being retrieved at a 6s interval;

b.Update on exchanges and trading pairs: the list of exchanges and trading pairs involved in the index computation has been updated to make sure that the index price is stable and reliable;

c.Validity of the transactions are now confirmed live.

3.The new indices computation rules:

a.The lastest prices and trading volumes of the token pairs are retrieved live via the WebSocket of the major exchanges;

b.Any data of the exchanges that have not been updated in the past 30 minutes will be regarded as invalid (weighted as 0);

c.For trading pairs with BTC as quote currency, the prices will be converted to USD by multiplying the OKEx BTC/USD index;

d.The number of exchanges with valid data decides the calculation method, details are as follows:

-more than 3 exchanges with valid data: a weighting methodology will be adopted; (if the price of an exchange deviates more than 3% from the average price of other exchanges, the exchange's price will be replaced by average price * 0.97 or average price * 1.03 instead)

-only 2 exchanges with valid data: a weighting methodology will be adopted;

-only 1 exchange with valid data only: its last filled price will be used as the index price directly;

4.Once the new computation rules are effective, the delivery price will be calculated according to the new rules.

5.For the current indices computation rules, please see: https://okexsupport.zendesk.com/hc/en-us/articles/115001762951-Indices-Computation-Rules

If you have any questions regarding our new rules, please feel free to contact our support team for clarification. If you have any comments or suggestions on the new rules, please email us at futures@okex.com. Your feedback will be highly appreciated. After the stability of the new indices computation rules is confirmed, we will launch the mark price system and notify our users.

Thank you for your continued support!

OKEx

Nov 12, 2018