| Article 1 |
These Directions are adopted pursuant to Article 57-3 of the Operating Rules of the Taiwan Futures Exchange Corporation (TAIFEX).
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| Article 2 |
A futures commission merchant ("FCM") may handle a position transfer between different accounts of a futures trader only when such a position transfer is made:
- between 2 futures trading accounts opened by the same futures trader with the FCM;
- for the same individual trader under different omnibus accounts of the FCM; or
- for an individual trader under an omnibus account of the FCM and between that omnibus account and a futures trading account opened by that individual trader with the FCM.
When handling a position transfer under subparagraph 1 of the preceding paragraph, the FCM shall obtain an evidentiary document or record showing the instruction of the futures trader. When handling a position transfer under subparagraph 2 or 3 of the preceding paragraph, the FCM shall obtain an evidentiary document or record showing the instruction of the transferor/transferee futures trader, the omnibus account holder, or the individual trader under the omnibus account.
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| Article 3 |
When handling a position transfer, an FCM shall verify that no position balance remains in the transferee account or with respect to the individual trader under the omnibus account and that there is sufficient margin in the transferor account and transferee account. The FCM may handle margin transfers between different accounts on a consolidated basis as per instruction.
Position transfers may be made only once each day for each account or for each individual trader under the omnibus account.
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| Article 4 |
An FCM shall have its clearing member apply by submitting a "Position and Margin Transfer Application Form" to the TAIFFX by 5:30 p.m. on the business day before the effective date of the transfer.
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| Article 5 |
The TAIFEX will handle the position transfer after reviewing and verifying the accuracy of the application details. Any position, securities, and other equity in the transferor account or of the individual trader under the omnibus account remaining after the close of the regular trading session and account settlement on the current day shall be transferred entirely, to become effective on the next business day.
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