| Article 48 |
When accepting a futures trading order made face to face by a principal or his/her representative or agent, the principal shall fill out the trading order form and add his/her signature or seal; when the order is made in writing or by telephone, telegram, or other means, except where otherwise provided by the Competent Authority or this Corporation, the associated person accepting the order shall fill out the trading order form in accordance with the particulars of the order. Where orders are made through electronic media such as IC cards or the Internet, the futures commission merchant is not required to prepare and complete an order form on the principal's behalf; provided that it shall immediately print records of the trading orders in the order that they were received, and upon closing of the market, the processing person and the chief of the department shall sign such records. The record of the trading order shall contain the name and account number of the principal, order method, date and time of the order, period of validity, the name of the futures exchange, the name of the futures contract, volume, and the delivery month, type of order (market order, limit order, or other), and the name or code number of the associated person taking the order. Where an order is given over the Internet, the futures commission merchant shall record the principal's Internet Protocol (IP) address and electronic signature; where an order is given by telephone, the futures commission merchant shall record the principal's telephone number by using the caller ID display function provided by telecommunications institutions; however, the aforementioned telephone number may be omitted when printing out the order record.
Unless the principal places the order in person and signs/seals the order form or the parties commit otherwise by prior agreement, a futures commission merchant shall deliver the order form to the principal to sign or seal after the order is placed unless the principal is asked in advance to fill out a Non-in-Person Order Signature/Seal Waiver Consent Form.
When a futures commission merchant accepts and executes futures trading orders by telephone, it shall make a synchronous tape recording and keep the record at its business place.
When a futures commission merchant accepts transmission of the contents of a futures trading order by fax, telegram, computer system, or other equipment, the transmitted contents shall be kept on file for inspection.
Transmission of futures trading orders, order confirmations, trade confirmations, and other electronic documents between a futures commission merchant and a principal employing an IC card, the Internet, or other mode of electronic trading shall carry an electronic signature issued by a certificate authority for identification and verification.
Printouts of order records made through electronic media such as IC card or the Internet and computer file order records as referred to in Paragraph 1 shall be kept for no less than five years; recordings and transmission contents as referred to Paragraphs 3 and 4 shall be kept on file for no less than two months. However, in the event of any dispute over a future trading order, the record shall be kept until it has been confirmed by the principal, or until a final determination has been rendered through arbitration or a final judgment has been handed down by a court.
In the event of telephone recording equipment malfunctions or operational omissions, the futures commission merchant shall, within two trading days of the occurrence, submit a report to this Corporation by letter stating the incident, cause, and remedial measures taken.
Where record-keeping operations for trading orders made through IC cards, the Internet, or other electronic trading modes conform to the following provisions, trading order records need not be printed out:
(1) Records are kept using a non-revisable, non-erasable electronic storage medium, and are completed on the same day the trade is executed.
(2) Comprehensive indexing and management procedures are instituted.
(3) Dedicated personnel are placed in charge of administering the records, and the electronic data files can be converted to printed format at any time.
The particulars required to be stated in trading orders under paragraph 1 are as provided by the Competent Authority. |