| Article 1 |
These regulations are prescribed pursuant to Article 4, paragraph 1, subparagraph 3, item 2; Article 5, paragraph 1, subparagraph 3, item 2; and Article 6, paragraph 1, subparagraph 3, item 2 of the Taiwan Futures Exchange Corporation Criteria for Clearing Membership.
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| Article 2 |
After a clearing member has carried out clearing and settlement operations for one full year, the clearing member shall make deposits to the clearing and settlement fund in accordance with the contribution methods and amounts prescribed herein.
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| Article 3 |
The amount of additional clearing and settlement funds to be deposited by clearing members as a whole after the carrying out of clearing and settlement operations shall be the amount by which the total clearing and settlement fund exceeds the base clearing and settlement fund.
The Taiwan Futures Exchange Corporation (TAIFEX) shall calculate and review the "total clearing and settlement fund" referred to in the preceding paragraph at least once annually, depending on market scale, and after fixing an amount, shall report the amount to the competent authority for approval and recordation.
When the total clearing and settlement fund is recalculated as set out in Article 110, paragraph 1 of the TAIFEX Operating Rules, the TAIFEX will report to the competent authority for recordation within 3 business days from the day that the TAIFEX notifies the clearing members of the amount required to be deposited.
The amount of the total clearing and settlement fund shall be calculated as the possible losses of the clearing member that has the largest possible losses among the clearing members, as estimated by using stress testing.
The base clearing and settlement fund referred to in paragraph 1 includes:
- Clearing and settlement funds contributed by clearing members prior to carrying out clearing and settlement operations.
- Clearing and settlement funds contributed by additional futures commission merchants consigning with the clearing member, additional branch offices established consigning futures commission merchants, a clearing member's additional introducing brokers or additional branch offices established by said introducing brokers.
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| Article 4 |
The amount of additional clearing and settlement funds to be contributed by clearing members as a whole shall be divided among the clearing members according to the ratio of the average daily required clearing margin of each clearing member to the average daily required clearing margin of all the clearing members in the last three months.
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| Article 5 |
Where the amount of additional clearing and settlement funds required to be deposited by an individual clearing member as calculated under the preceding article is greater than the amount already deposited, the clearing member shall deposit the difference; where the amount of additional clearing and settlement funds required to be deposited is smaller than the amount already deposited, the clearing member may withdraw the difference following notification by the TAIFEX.
With the exception of during the cooling-off period as set out in Article 105, paragraph 3 of the TAIFEX Operating Rules, at the beginning of January, April, July, and October of each year, the TAIFEX shall calculate the amount that each clearing member is required to deposit to the clearing and settlement fund pursuant to Article 4. Each clearing member shall deposit or withdraw the amount to be deposited or withdrawn under the preceding paragraph within 3 business days counting inclusively from the date of notification by the TAIFEX.
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| Article 6 |
Where a clearing member fails to make a deposit in accordance with paragraph 2 of the preceding article, the TAIFEX may terminate its clearing membership pursuant to Article 10 of the Taiwan Futures Exchange Corporation Criteria for Clearing Membership.
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| Article 7 |
These regulations, and any amendments hereto, shall take force upon public announcement following ratification by the competent authority.
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