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The key points herein are set forth in accordance with Chapter 9 and other relevant provisions of the operating rules of the Taiwan Futures Exchange Corporation ("TAIFEX"). Futures commission merchants and clearing members shall observe these key points in carrying out clearing and settlement operations.
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Deposit of cash clearing margins
- The business hours for this operation are 7:00 a.m. to 5:00 a.m. of the following day.
- To deposit the cash clearing margins (for proprietary or customer accounts) into the margin account of the TAIFEX, clearing members shall remit the funds, by the means announced by the TAIFEX, into the clearing margin bank account opened by the TAIFEX with the clearing bank.
- After completing the aforesaid operation, clearing members shall make a computer transmission to notify the TAIFEX Clearing Department. In the event of any malfunction in the computer system, clearing members shall fill out a Clearing Margin Deposit Notice and fax it to the Clearing Department of the TAIFEX and call the same for notification purpose.
- The clearing margin deposited by a clearing member by 5:30 p.m. on the TAIFEX business day shall be included in the clearing member's clearing margin equity of the current day. The clearing margin that a clearing member deposits after 5:30 p.m. shall be included in the clearing margin equity of the following business day.
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Withdrawal of cash clearing margins
- The business hours for this operation are 8:45 a.m. to 4:30 p.m.
- A clearing member carrying out procedures for same-day withdrawal of cash clearing margin shall transmit by computer to the TAIFEX Clearing Department during the prescribed hours, to apply for withdrawal of excess cash margin. The TAIFEX will review the amount of margin that is available for withdrawal by the clearing member, and when the withdrawable amount exceeds the amount indicated in the application, the TAIFEX shall remit the funds into the clearing member's segregated clearing margin account (proprietary or customer account). When the withdrawable amount is less than the amount indicated in the application, the application is deemed invalid. The TAIFEX shall accept applications from the clearing member in accordance with the following rules:
- If the clearing member completes the application by 9 a.m., the TAIFEX shall remit the funds into the clearing member's segregated clearing margin account (proprietary or customer account) by 10 a.m. of the same day.
- If the clearing member completes the application during the period from 9 a.m. to 11 a.m., the TAIFEX shall remit the funds into the clearing member's segregated clearing margin account (proprietary or customer account) by 12 noon of the same day.
- If the clearing member completes the application during the period from 11 a.m. to 2 p.m., the TAIFEX shall remit the funds into the clearing member's segregated clearing margin account (proprietary or customer account) by 3 p.m. of the same day.
- If the clearing member completes the application during the period from 2 p.m. to 2:45 p.m., the TAIFEX shall remit the funds into the clearing member's segregated clearing margin account (proprietary or customer account) by 3:45 p.m. of the same day.
- A clearing member carrying out procedures for next-day withdrawal of cash margin shall transmit by computer to the TAIFEX Clearing Department during the hours from 8:45 a.m. to 4:30 p.m., to apply for withdrawal of excess margin. The TAIFEX, after completing the marking to market operation for position settlement for the day, will review amount of margin that is available for withdrawal by the clearing member. When the withdrawable amount exceeds the amount indicated in the application, the TAIFEX will notify the clearing bank to remit the funds into the clearing member's segregated clearing margin account (proprietary or customer account) by 9 a.m. of the next day. When the withdrawable amount is less than the amount indicated in the application, the application is deemed invalid. Clearing members who desire to change the amount for withdrawal shall re-apply by computer during business hours.
- Clearing member cash margin equity shall be calculated separately for New Taiwan dollar and TAIFEX-announced foreign currency accounts, and combined to arrive at the combined total cash equity. If the combined total cash equity is a positive value, an application may be submitted to withdraw the excess margin amount from the total cash equity. Excess cash margin can be withdrawn from different currency accounts as follows:
- Only when the combined total cash equity and the New Taiwan dollar account are both positive in value can an application be submitted to withdraw New Taiwan dollars; the withdrawable amount shall be limited to the amount of the excess margin within the combined total cash equity, or the excess margin within the New Taiwan dollar account, whichever is lower.
- Only when the combined total cash equity and the equity of the foreign currency account desired to be withdrawn from are both positive in value can an application be made to withdraw such foreign currency; the withdrawable amount shall be in such foreign currency only, and limited to the amount of the excess margin within the combined total cash equity, or the excess margin within the foreign currency account, whichever is lower.
- If the foreign currency of the foreign currency account as referred to in the preceding subparagraph is US dollars, Renminbi, or Japanese Yen, the maximum withdrawable amount shall additionally have deducted from it the margins in such foreign currency that customers other than offshore overseas Chinese, foreign nationals, and mainland-area investors shall pay when trading US dollar, Renminbi, or Japanese Yen-denominated products.
- In the event of any malfunction in the computer system when clearing members conduct same-day or next-day withdrawal of clearing margins, they shall fill out an Application for Same-Day Withdrawal of Clearing Margin, or an Application for Next-Day Withdrawal of Clearing Margin, and fax it to the Clearing Department of the TAIFEX and call the same for notification purpose. Clearing members shall deliver the original of the Application for Same-Day Withdrawal of Clearing Margin to the Clearing Department of the TAIFEX by 5 p.m. on the day of the application; clearing members shall deliver the original of the Application for Next-Day Withdrawal of Clearing Margin to the Clearing Department of the TAIFEX before the closing of the regular trading session on the next business day.
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Intra-session margin call for the regular trading session
- The business hours for this operation are 8:00 a.m. to 4:15 p.m.
- Upon receiving the notice of margin call from TAIFEX during business hours via computer linkup, clearing members shall confirm the additional margin required and notify the clearing bank within one hour to remit the cash clearing margin funds of no less than the amount required into the clearing margin account of the TAIFEX. If a clearing member cannot make the payment of margins in the foreign currency within the time limit because it is past the business hours of the clearing bank, the clearing member shall make the payment in New Taiwan Dollars or another foreign currency as announced by the TAIFEX.
- After completing the aforesaid operation, clearing members shall transmit by computer to the TAIFEX Clearing Department. In the event of any malfunction in the computer system, the clearing members shall fill out a Clearing Margin Deposit Notice and fax it to the Clearing Department of the TAIFEX and call the same for notification purpose.
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Position adjustment
- If the trading hours for the futures contract close at 1:45 p.m., the business hours for this operation are 7:00 a.m. to 2:30 p.m. If the trading hours for the futures contract close at 4:15 p.m., the business hours for this operation are 7:00 a.m. to 4:30 p.m.
- When applying for position adjustment, futures commission merchants shall apply via computer linkup during the business hours of the TAIFEX to have the position transferred into the correct account and check the veracity of the position adjustment through computer linkup. If any malfunction occurs in the computer system, the futures commission merchant may fill out a Position Adjustment Application Form, and notify the TAIFEX Clearing Department by fax and telephone for further handling.
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Trade position settlement on the expiration date
The trade position settlement at expiration for each type of futures trading contracts shall be handled in accordance with the business hours set out below:
- Index futures contracts
- The business hours for settling index futures contracts are from 2:30 p.m. to 5 p.m. on the final settlement day. However, in the case of foreign index futures contracts, if the TAIFEX can obtain the final settlement price before 9:30 a.m. on the final settlement day, the business hour for settlement is 9:30 a.m. on the final settlement day.
- Where a clearing member has open positions for the contract spot month after the market closes on the last trading day, the TAIFEX shall, during the business hours on the final settlement day, settle the expired positions at the final settlement price and include the gain or loss thereupon into the calculation of the clearing margin of the same day.
- Index option contracts
- Query of buyer exercise list
- The business hours for making query are 2:30 p.m. to 5:00 p.m. on the expiration day.
- TAIFEX will post the final settlement price and produce buyer exercise reference list at 2:30 p.m.
- Futures commission merchants may make query of the aforesaid list via computer linkup after it is available until 03:30 p.m. on the same day.
- Futures commission merchants should check the final buyer exercise list via computer linkup after it is available from 03:30 p.m. until 5:00 p.m., print it out and save the file.
- Making changes to buyer exercise reference list
- The business hours for this operation are 2:30 p.m. to 3:30 p.m. on the expiration day.
- Futures commission merchants may carry out the addition to or deletion from the buyer exercise reference list during the aforesaid business hours.
- Futures commission merchants may add to or delete from buyer exercise reference performance list according to customer instructions during the aforesaid business hours.
- Query of writer exercise assignment list
- The business hours for this operation are 3:30 p.m. to 5:00 p.m. on the expiration day.
- TAIFEX will produce a writer exercise assignment list on a random basis at 3:30 p.m.
- Futures commission merchants should check the aforesaid list via computer linkup after it becomes available until 5:00 p.m., print it out and save the file.
- Position settlement operation on the expiration date
- The business hours for this operation are 3:30 p.m. to 5:00 p.m. on the expiration day.
- During the aforesaid period, the TAIFEX will carry out settlement of open positions on expired options by the final settlement price according to the final buyer exercise list, and include the gain or loss thereupon into the calculation of the clearing margin of the same day.
- Clearing members may check the balance of their clearing margin account via computer linkup after the TAIFEX finishes the position settlement.
- Stock option contracts
- Query of buyer exercise list
- The business hours for this operation are 2:30 p.m. to 5:00 p.m. on the expiration day.
- The TAIFEX shall post the final settlement price and produce a buyer exercise reference list at 2:30 p.m.
- Futures commission merchants may check the aforesaid list via computer linkup after it becomes available until 3:30 p.m.
- Futures commission merchants shall check the final buyer exercise list via computer linkup after it is available from 3:30 p.m. until 5:00 p.m., print it out and save the file.
- Making posts or deletions to buyer exercise reference list
- The business hours for this operation are 2:30 p.m. to 3:30 p.m. on the expiration day.
- Futures commission merchants may add or delete traders information on the buyer exercise reference list during the aforesaid business hours.
- Futures commission merchants may add to or delete from buyer exercise reference list according to trader instructions during the aforesaid business hours.
- Query of writer exercise assignment list
- The business hours for this operation are 3:30 p.m. to 5:00 p.m. on the expiration day.
- TAIFEX shall perform writer exercise assignment and produce a writer exercise assignment list on a random basis at 3:30 p.m.
- Futures commission merchants shall check the writer exercise assignment list via computer linkup after it is available until 5:00 p.m., print it out and save the file
- Position settlement operation on the expiration date
- The business hours for this operation are 3:30 p.m. to 5:00 p.m. on the expiration day.
- During the aforesaid period, the TAIFEX will carry out settlement of open positions on expired options by the price difference between the value of the underlying assets calculated based on the final settlement price, and the exercise value according to the final buyer exercise list, and include the gain or loss thereupon into the calculation of the clearing margin of the same day.
- Clearing members may check the balance of their clearing margin account via computer linkup after the TAIFEX finishes the position settlement.
- Gold Futures Contracts and New Taiwan Dollar-denominated Gold Futures Contracts
Except where other regulations permit the conversion of the futures position to physical gold as defined under the Taipei Exchange Regulations Governing Registration and Trading of Physical Gold, settlement upon the expiration of this Contract shall be conducted as set out below:
- The business hour for this operation is 9:30 a.m. on the final settlement day.
- Where a clearing member has open positions for the spot month after the market closes on the last trading day, the TAIFEX shall, during the business hours on the final settlement day, settle the expired positions at the final settlement price, and include the gain or loss thereupon into the calculation of the clearing margin of the same day.
- Gold Option Contracts
Except where other regulations permit the conversion of the options position to physical gold as defined under the Taipei Exchange Regulations Governing Registration and Trading of Physical Gold, settlement upon the expiration of this Contract shall be conducted as set out below:
- Query of buyer exercise list
- The business hours for this operation are 9:30 a.m. to 4:00 p.m. on the expiration day.
- The TAIFEX shall post the final settlement price and produce a buyer exercise reference list at 9:30 a.m.
- Futures commission merchants may check the aforesaid list via computer linkup after it becomes available until 11:00 a.m.
- Futures commission merchants shall check the final buyer exercise list via computer linkup after it is available from 11:00 a.m. until 4:00 p.m., print it out and save the file.
- Making posts or deletions to buyer exercise reference list
- The business hours for this operation are 9:30 a.m. to 11:00 a.m. on the expiration day.
- Futures commission merchants may add or delete traders information on the buyer exercise reference list during the aforesaid business hours.
- Futures commission merchants may add to or delete from buyer exercise reference list according to trader instructions during the aforesaid business hours.
- Query of writer exercise assignment list
- The business hours for this operation are 11:00 a.m. to 4:00 p.m. on the expiration day.
- TAIFEX shall perform writer exercise assignment and produce a writer exercise assignment list on a random basis at 11:00 a.m.
- Futures commission merchants shall check the writer exercise assignment list via computer linkup after it is available until 4:00 p.m., print it out and save the file.
- Position settlement operation on the expiration date
- The business hours for this operation are 11:00 a.m. to 11:30 a.m. on the expiration day.
- During the aforesaid period, the TAIFEX will carry out settlement of open positions on expired options based on the final settlement price according to the final buyer exercise list, and include the gain or loss thereupon into the calculation of the clearing margin of the same day.
- Clearing members may check the balance of their clearing margin account via computer linkup after the TAIFEX finishes the position settlement.
- Single stock futures contracts
- The business hours for this operation are from 2:30 p.m. to 5 p.m. on the final settlement day.
- If after market close on the last trading day a clearing member has open contract positions for that delivery month, the TAIFEX will conduct settlement for expired positions during business hours on the final settlement day using the final settlement price to calculate the value of the underlying assets, and include the gain or loss thereupon into the calculation of the clearing margin of the same day.
- Forex futures contracts
- The business hours for this operation are as follows on the final settlement day.
- USD/CNH FX Futures Contracts and USD/CNT FX Futures Contracts: 11:30 a.m. to 5 p.m.
- EUR/USD FX Futures Contracts, USD/JPY FX Futures Contracts, GBP/USD FX Futures Contracts, and AUD/USD FX Futures Contracts: 2:30 p.m. to 5 p.m.
- If after market close on the last trading day a clearing member has open contract positions for that delivery month, the TAIFEX will conduct settlement for expired positions during business hours on the final settlement day at the final settlement price, and include the gain or loss thereupon into the calculation of the clearing margin of the same day.
- Brent Crude Oil Futures Contracts
- The business hours for this operation are 9:30 a.m. on the final settlement day.
- If after the end of trading of the expiring contracts of any delivery month, a clearing member has open contract positions for that delivery month, the TAIFEX will conduct settlement for the expired positions within the business hours on the final settlement day at the final settlement price, and include the gain or loss thereupon into the calculation of the clearing margin of the same day.
- In the event, after the completion of settlement operations for this Contract upon expiration, that ICE Futures Europe restates the ICE Brent Index price, so that the TAIFEX needs to adjust the final settlement price accordingly, as provided for in Article 12, paragraph 3 of the TAIFEX Trading Rules for Brent Crude Oil Futures Contracts, the TAIFEX, if it obtains the restated ICE Brent Index as announced by ICE Futures Europe before 9:30 a.m. on a business day, may, from 2:30 p.m. on the current day, carry out the operations to adjust the settlement of the expired positions, by calculating the difference between the pre- and post-adjustment final settlement prices of the original open positions of that delivery month, and incorporating the difference into the clearing margins for the current day.
If the final settlement price for any type of futures trading contracts under the preceding paragraph has not been announced before the prescribed business hours, the TAIFEX may adjust the business hours for trade position settlement at expiration in view of market conditions.
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Margin call for the regular trading session after the close of the regular trading session
- If the trading hours for the futures contract close at 1:45 p.m., the business hours for this operation are before 3:30 p.m. If the trading hours for the futures contract close at 4:15 p.m., the business hours for this operation are before 5:30 p.m. However, if the futures contract is a Flexible Futures Contract, the business hours for this operation are before 5:30 p.m.
- Clearing members shall check their margin equity with the TAIFEX via computer linkup after TAIFEX finishes the position settlement. Where the margin equity is less than the required clearing margin, clearing members shall remit the deficit during business hours of the TAIFEX into their margin account (proprietary or customer) with the clearing bank. The Clearing Department of the TAIFEX will notify the clearing bank to transfer the funds into TAIFEX account. If a clearing member cannot make the payment of margins in the foreign currency within the time limit because it is past the business hours of the clearing bank, the clearing member shall make the payment in New Taiwan Dollars or another foreign currency as announced by the TAIFEX, and shall deposit the additional margin in the foreign currency into the TAIFEX margin account by 10 a.m. of the following business day.
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Foreign exchange settlement agent services for margin
- Futures commission merchants and clearing members engaging in brokerage trading of futures contracts quoted in a foreign currency shall deposit margin in a foreign currency announced by the TAIFEX, provided that if it is not possible to meet a margin call or complete a remittance of margin in the foreign currency within the required time, the clearing member may first deposit the funds with the TAIFEX in New Taiwan dollars or another foreign currency as announced by the TAIFEX, and the TAIFEX will carry out exchange settlement on its behalf or handle the matter pursuant to applicable regulations.
- Matters relating to exchange settlement and reporting shall be handled pursuant to the applicable regulations of the competent authority for foreign exchange.
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Acceptance or rejection of transfers of expiring positions in international cooperative products
- The term "international cooperative products" in this operation refers to futures trading contracts denominated in New Taiwan Dollars and listed on a foreign futures exchange pursuant to a cooperative agreement signed between the TAIFEX and the foreign futures exchange with the approval of the competent authority.
- A futures commission merchant may perform this operation only after the TAIFEX has transmitted to the futures commission merchant the information on the expiring position in the International Cooperative Products. The futures commission merchant shall complete the operation before 7:45 a.m. on the same day.
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Position netting
- If the trading hours for the futures contract close at 1:45 p.m., the business hours for this operation are 7:00 a.m. to 2:30 p.m. If the trading hours for the futures contract close at 4:15 p.m., the business hours for this operation are 7:00 a.m. to 4:30 p.m.
- Futures commission merchants may apply for position netting during the aforesaid business hours. The position netting that they apply for will take effect immediately. They may check the results of the position netting via computer linkup.
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Combination of assigned positions
- If the trading hours for the futures contract close at 1:45 p.m., the business hours for this operation are 7:00 a.m. to 2:30 p.m. If the trading hours for the futures contract close at 4:15 p.m., the business hours for this operation are 7:00 a.m. to 4:30 p.m.
- Futures commission merchants may apply for combination of assigned positions during the aforesaid business hours and check the result via computer linkup. The combination takes effect immediately upon application.
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Offset of assigned positions
- If the trading hours for the futures contract close at 1:45 p.m., the business hours for this operation are 7:00 a.m. to 2:30 p.m. If the trading hours for the futures contract close at 4:15 p.m., the business hours for this operation are 7:00 a.m. to 4:30 p.m.
- Futures commission merchants may apply for offset of assigned positions during the aforesaid business hours and check the result via computer linkup. The offset takes effect immediately upon application.
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Combination of spread positions in futures contracts
- If the trading hours for the futures contract close at 1:45 p.m., the business hours for this operation are 7:00 a.m. to 2:30 p.m. If the trading hours for the futures contract close at 4:15 p.m., the business hours for this operation are 7:00 a.m. to 4:30 p.m.
- During the business hours for this operation, the TAIFEX will prepare an itemized table of futures contract spread position combinations, broken down by clearing member, based on the balance of positions of eligible futures contract spread position combinations in each trading account on that day. Futures commission merchants and clearing members may check the results via computer.
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Contract adjustments as a result of cash dividend distributions made by the issuer of the securities underlying, or as a result of distributions of income from the beneficial certificates underlying, a single stock futures contract
- One business day before the date on which adjustments to the contract in question take effect
- The business hours for this operation are 3:30 p.m. to 5:30 p.m.; if the after-hours trading session is applicable, the business hours are 3:30 p.m. to 5:15 p.m.
- In tandem with the contract adjustments in connection with a cash dividend distribution or income distribution, the TAIFEX will produce a list indicating the adjustments in terms of addition to long equity value and deduction from short equity value.
- Futures commission merchants and clearing members shall check the list via computer linkup after it is available and print it out and save the file.
- If the after-hours trading session is applicable, the TAIFEX, with respect to the amount of income to be distributed, will make adjustments in terms of addition to long equity value and deduction from short equity value, to keep the equity value unchanged. However, if the TAIFEX has made other provisions, those provisions shall govern.
- The date on which the contract adjustments take effect
- The business hours for this operation are before 7:00 a.m.
- In tandem with the cash dividend distribution or income distribution coming into effect, the TAIFEX will make the adjustment in terms of addition to long equity value and deduction from short equity value, keeping the equity value unchanged.
- Each clearing member shall check its clearing margin equity via computer linkup after the information is available and print it out and save the file.
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Position handling during the after-hours trading session
- Except where otherwise provided, positions in futures trading contracts that are transacted during the after-hours trading session will be included, prior to 7:00 a.m. of the following regular trading session, into the positions of the regular trading session.
- Except where otherwise provided, any position adjustment, position netting, specified position combinations, and specified position offsets for futures trading contracts, as well as futures contract spread positions, from during the after-hours trading session, shall be included into the following regular trading session. However, in the case of an expiring contract that trades into the after-hours trading session on the last trading day, the position handling for the last trading day shall be done before the operations for trade position settlement on the final settlement day.
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Margin call for the after-hours trading session
- From the commencement of the preceding after-hours trading session until the close of the current day's regular trading session for all futures trading contracts, the margin call for the after-hours trading session shall be consolidated into the intra-session margin call for the current day's regular trading session.
- Margin call operations will not be conducted during the after-hours trading session that is held after the close of the current day's regular trading session for all futures trading contracts.
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These Operational Key Points and any amendments hereto shall be implemented by public announcement after being reported to the competent authority for review and recordation.
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