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Pursuant to the provisions of Article 27 of the Regulations Governing Futures Clearing Houses, the Taiwan Futures Exchange Corporation (hereinafter referred to as the "TAIFEX") and ______________ Co., Ltd. (hereinafter referred to as the "Member"), a futures clearing member, hereby agree to the terms of this Contract as follows:
Article 1
This Contract shall become effective only after the Member has obtained documentation of company registration, documentation of business registration, and the license certificate issued by the Competent Authority. The Member shall not engage in clearing and settlement operations until the TAIFEX has executed and returned this Contract and the Member has become a clearing member.
Article 2
The Member shall comply with the TAIFEX's Operating Rules and other guidelines, regulations, and announcements. The Member shall also comply with any amendments to the TAIFEX's Operating Rules and other rules, regulations, and announcements.
Article 3
When the Member engages in clearing and settlement, it shall assume clearing and settlement obligations as well as all related responsibilities to the TAIFEX.
Article 4
When engaging in clearing and settlement operations, the Member shall comply with the TAIFEX's rules governing marking to market, delivery and settlement on expiration, and position limits. When necessary, the Member shall render a clearing margin in advance.
Article 5
Where the clearing margin rendered by the Member is less than amount prescribed by the TAIFEX, the Member shall cover the shortfall by the TAIFEX's deadline.
Article 6
The Member agrees, pursuant to the TAIFEX's requirements, to instruct its settlement bank to provide the particulars of the Member's margin account. The Member also agrees that if Member fails to perform its clearing and settlement obligations, the TAIFEX may instruct the Member's settlement bank to suspend withdrawals by the Member from its margin account and to transfer funds from that account to an account designated by the TAIFEX as instructed by the TAIFEX.
Article 7
No later than two months after this Contract takes force, the Member shall deliver to the TAIFEX copies of its succession contracts with other clearing members to take over the accounts of the Member and Member's principals in the event that the Member goes bankrupt, dissolves, suspends operations, or fails to perform its clearing and settlement obligations.
Article 8
Should the TAIFEX, pursuant to Article 54 of the Futures Trading Act, designate the Member to take over relevant accounts of another clearing member and its principals, the Member shall not refuse and shall perform clearing and settlement obligations on behalf of that clearing member as instructed by the TAIFEX.
Article 9
The TAIFEX provides, in Article 105 of its Operating Rules, as required by Article 49, paragraph 2, of the Futures Trading Act, the order of appropriation of funds, and the proportions to be borne by other clearing members, to cover the default of a futures clearing member when the clearing margin deposited by that futures clearing member is insufficient. Upon such an occurrence, the Member shall not refuse to assume its apportionment as designated by the TAIFEX.
Article 10
The Member shall pay clearing fees, settlement fees, positions adjustment fees, positions transfer fees, registration fees, annual license fees and other fees on time according to the schedules promulgated by the TAIFEX.
Article 11
The TAIFEX shall not be liable for losses suffered by the Member caused by measures that the TAIFEX adopts dues to market emergencies, changes to relevant laws and regulations, orders from the Competent Authority, or any other events of force majeure.
Article 12
The Member shall bear full liability for operations and all acts of clearing and settlement conducted by its employees on the TAIFEX's market. Where the Member makes personnel changes or removes employees, the Member shall continue to be fully liable until the TAIFEX received notification that the personnel change or removal of the employee has been registered.
Article 13
Where any of the circumstances listed in the Subparagraphs below apply, the TAIFEX may, pursuant to its Operating Rules or other rules, regulations, or announcements, fine the Member for breach of contract, suspend or restrict the Member's clearing and settlement operations, or terminate this Contract:
- Violation of laws and regulations, failure to comply with administrative dispositions by the Competent Authority, or violation of the TAIFEX's Operating Rules or other rules, regulations, or announcements.
- Clearing and settlement acts in bad faith capable of injuring others.
- Refusal to take over the clearing and settlement operations of other clearing members in the circumstances described in Article 54 of the Futures Trading Act.
- Violation of the terms of this Contract.
Article 14
In addition to termination by the TAIFEX for the reasons listed in the preceding Article, this Contract shall also terminate if either party goes bankrupt, is dissolved, ceases operations, or has its operating permit revoked.
Article 15
Where the Member terminates this Contract pursuant to the preceding Article or is suspended from trading, the Member is obliged to unwind its trades on the TAIFEX's market. Where the Member terminates this Contract for other reasons, termination shall not take force until the Member notifies the TAIFEX in writing and the TAIFEX agrees to the termination.
Article 16
The TAIFEX and the Member agree that any disputes arising from clearing or settlement of futures transactions shall resolved by arbitration. Should the arbitration period expire without an arbitration decision, both parties agree that the Taipei District Court shall be the court of first instance if a lawsuit is filed.
Article 17
This Contract shall be executed in three copies. The TAIFEX, the Member, and the Competent Authority shall each retain one copy.
The Parties:
TAIFEX: Taiwan Futures Exchange Corporation
Business AdministrationNo.:
Responsible Person:
ID No.:
Address: 14F, No. 100 Roosevelt Rd. Section 2, Taipei
Member:
Business Administration No.:
Responsible Person:
ID No.:
Address:
Date:
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