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When a futures commission merchant ("FCM") is unable to continue normal operations at its place of business due to the occurrence of a force majeure event, it may seek a temporary venue for operations and apply to the Taiwan Futures Exchange Corporation ("TAIFEX") for permission to continue operating. Operations shall then be handled according to the following provisions:
- When an FCM applies to continue operations, it may temporarily make use of the operating venue and information facilities of its main office, branch office, or another site for consignment trading or trading for its own account.
- The period of time during which an FCM may use a temporary venue for operations may not exceed six months.
- Prior to the conclusion of the period referred to in the preceding paragraph, the FCM shall arrange for a permanent place of business. The permanent site must conform to the provisions of the Standards Governing Futures Commission Merchant Sites and Facilities and the FCM shall have carried out the procedures of Article 3 of the Rules Governing Futures Commission Merchants and Article 15 of the Operating Rules of the Taiwan Futures Exchange Corporation prior to commencing operations.
When an FCM applies to continue operations at a temporary operating venue at a site other than its main office or branch office, it shall apply to the Taiwan Futures Association for an inspection of the site, and within 15 days from the day following approval by the TAIFEX it shall submit by letter to the TAIFEX documents evidencing inspection and approval of the site.
When the temporary operating venue of the preceding paragraph has been approved for temporary use by this Company in accordance with the Directions Governing Futures Commission Merchant Sites and Facilities, then during the period of its temporary use, the operating venue will be deemed a registered operating venue as defined in the rules of this Company and its public announcements and circulars.
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When the occurrence of a force majeure event results in the failure of an FCM's information transmission system, the FCM may adopt, on a temporary basis, one of the following methods of handling the failure:
- The FCM may make use of the information transmission system at its main office, another branch office, or another venue, and report such fact by letter to the TAIFEX for reference on the following business day.
- The FCM may make use of the backup network connection equipment of another FCM. Prior to such use, the FCM shall notify the TAIFEX by telephone, and shall submit a Statement by fax to the TAIFEX prior to the market close bearing the seals of both companies and the signatures or seals of their responsible persons, and shall mail a report to the TAIFEX on the next following business day with the above Statement attached.
- The FCM may make use of the TAIFEX's reserve market terminals. Prior to such use, the FCM shall make arrangements with the TAIFEX by telephone and shall submit an application to the TAIFEX with the above Statement attached and bearing its company seal and the signature or seal of its responsible person. Before the application is delivered, the FCM may fax a copy of the application to the TAIFEX. Use of terminals and locations of the TAIFEX cloud-based backup futures auction terminals shall comply with theTAIFEX Guidelines for the Management of Futures Auction Terminals.
- The FCM may make use of the backup accounts established by its main office, another branch office, or another FCM.
Given the circumstances in subparagraphs 2 and 3 of the preceding paragraph, the Taiwan Stock Exchange will arrange for configuration of the aforesaid network connection equipment and provide them for use only after performing an inspection to confirm the fact of irregularities within the information transmission system, and will provide only two sets of such equipment for use.
Operating procedures in relation to paragraph 1, subparagraph 4 above shall be separately adopted by the TAIFEX.
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These Directions and any amendments hereto shall be implemented following submission to and approval for recordation by the competent authority for recordation.
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