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These Guidelines are adopted pursuant to Article 48, paragraph 12 of the Operating Rules of the Taiwan Futures Exchange Corporation (TAIFEX).
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Unless otherwise provided by law or regulation, a futures commission merchant completing and submitting trading order forms electronically shall comply with these Guidelines. Matters not provided for herein shall be governed by the applicable bylaws, circular letters, and public announcements of the TAIFEX.
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A futures commission merchant completing and submitting trading order forms electronically shall comply with the following provisions and apply for the approval of the TAIFEX by submitting an application form (see appendix) with relevant documents attached before it may begin to do so.
- If a futures commission merchant receives orders for futures brokerage trading from a principal in writing or by telephone, telegram, or teletext, the associated person handling the brokerage trading may fill out the trading orders electronically.
- A futures commission merchant need not print out every single order form if it can identify the associated person responsible for each brokerage trading order, but it shall store the orders on electronic media that cannot be edited or erased.
- A futures commission merchant shall print out trading order records in chronological order and compile them according to the name of the associated person that handled the brokerage trade, and have them signed by such associated person and by the head of the business department after the close of the regular trading session. Trading order records need not be printed out and signed if the storage operations for the trading records meet the following requirements:
- They are stored on electronic media that cannot be edited or erased, and the preparation of the records is completed on the day of the trade's execution.
- The records are fully indexed, and management procedures are in place.
- A specific person(s) is responsible for records management, and it is possible at any time to convert the electronically stored data to hardcopy format.
- Before a futures commission merchant completes and submits a trading order electronically, it shall duly collect in advance in the trading account sufficient trading margin and premium, and comply with position limits and other controls.
- The auction terminals that associated persons handling brokerage trading use to complete and submit trading order forms electronically shall be limited to the ones within the business location for which such associated person is registered with the Chinese National Futures Association (CNFA).
- A futures commission merchant shall manage futures auction terminals used to complete and submit trading order forms electronically pursuant to the Guidelines for the Management of Futures Auction Terminals, and the CNFA’s Standards for the Sites and Facilities of Association Members’ Business Locations, and shall also prescribe management rules for relevant personnel and operations, and submit the rules for the approval of the board of directors. The content of the aforementioned rules shall include the security control of usernames and passwords. Users of the auction terminals shall undergo training and performance review, and shall be approved by the heads of the business and information departments. The users shall log off such operation system immediately before leaving the terminals in order to avoid access by a third party.
- A futures commission merchant shall faithfully comply with relevant provisions of the Examination System for the Establishment of Information and Communications Security for Futures Commission Merchants. During trading periods, the network connections for the auction terminals used to complete and submit trading order forms electronically shall have the necessary physical isolation from public networks in accordance with its information security policy.
- A futures commission merchant shall include the provisions of these Guidelines in its internal control and auditing operation systems, and submit the systems for the approval of the board of directors. The internal auditors of a futures commission merchant shall, during trading sessions, randomly conduct dynamic audits to check whether users and operation procedures comply with rules.
- A futures commission merchant shall notify customers in writing before implementing electronic completion and submission of trading order forms.
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