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Title Operating Rules of the Taiwan Futures Exchange Corporation CH
Date 2007.10.25 ( Amended )

Article Content

Article 1
Article 2
Article 3
Article 4
Article 5
Article 6
Article 7
Article 8
Article 9
Article 10
Article 11
Article 12
Article 13
Article 14
Article 15
Article 16
Article 17
Article 18
Article 19
Article 19-1
Article 20
Article 21
Article 22
Article 23
Article 24
Article 25
Article 26
Article 27
Article 28
Article 29
Article 30
Article 31
Article 32
Article 33
Article 34
Article 35
Article 35-1
Article 35-2
Article 35-3
Article 36
Article 37
Article 38
Article 38-1
Article 39
Article 40
Article 41
Article 42
Article 42-1
Article 43
Article 44
Article 44-1
Article 44-2
Article 44-3
Article 44-4
Article 44-5 A futures commission merchant processing account opening for an onshore overseas Chinese or foreign national to engage in futures trading shall obtain the documents listed below from the onshore overseas Chinese or foreign national before it may open an account: 1. Photocopy of certification of completion of identity registration; 2. Overseas Chinese and foreign natural persons: passport and overseas Chinese identity certificate (or alien resident certificate); 3. Foreign institutional investors: Ministry of Economic Affairs recognition certificate, company registration certification, business registration certification, and national identity card (or alien resident certificate or passport) of the responsible person. A futures commission merchant processing account opening for an offshore overseas Chinese or foreign national to engage in futures trading shall obtain the following documents which are signed or sealed by the domestic agent or representative before it may open an account: 1. Photocopy of certification of completion of identity registration. 2. The power of attorney/agency letter authorizing a domestic agent or representative to handle the procedures pertaining to domestic futures trading account opening, trade settlement, information reporting, exercise of rights associated with purchased products, applying for foreign exchange settlement, and payment of taxes. 3. Photocopy of the national identity card, alien resident certificate or company registration (or amendment registration) certification of the domestic agent or representative. 4. The photocopy of the contract with the domestic agent, the stipulated content of which shall comply with the applicable provisions of these Rules and specify the following particulars: (1) Receipt and payment of margins and margin calls will be done in US dollars. (2) A designated agent will apply to open a segregated foreign exchange deposit account for futures trading. (3) The use of the funds remitted in. (4) The use and scope of any conversion of funds in the segregated foreign exchange deposit futures trading account into New Taiwan dollars. (5) Provisions for control/management of the use and any conversion into US dollars of cumulative realized gains denominated in New Taiwan Dollars. (6) The method for handling margin calls. (7) Matters in connection with the handling of clearing and settlement and information reporting for futures trading. (8) Method of providing order records. (9) Reporting to the competent authority for foreign exchange business the status of foreign exchange settlement of funds, foreign exchange deposit balance, and summary information on the equity in the customer margin account, with a copy to this Corporation for registration. (10) If the agent is a futures commission merchant, stipulation shall be made that it may not act as an agent for the trading of securities, opening of an NT Dollar deposit account, or conducting of physical delivery. If any likelihood arises that trading by the offshore overseas Chinese or foreign national involves physical delivery, the agent shall immediately notify the offshore overseas Chinese or foreign national to liquidate the position or to appoint a custodian bank to replace it as agent. If the agent has not been replaced in time and exercise/assignment is made requiring physical delivery, it shall be stipulated that the agent, within 3 business days from obtaining the deliverables, shall completely dispose of them and deposit the funds obtained into the customer margin account with the futures commission merchant engaged for futures trading by the offshore overseas Chinese or foreign national. The photocopy of the contract in the preceding subparagraph 4 can be replaced by a statement submitted by the domestic agent. The statement shall state the content of the contract entered into between the offshore overseas Chinese or foreign national and the domestic agent comply with the preceding subparagraph 4. A futures commission merchant processing omnibus account opening for an offshore foreign futures commission merchant to engage in futures trading shall comply with the preceding paragraph 2 and paragraph 3 and additionally shall obtain the following documents which are signed or sealed by the domestic agent before it may open an account: 1. certification that it is a qualified clearing member of a foreign futures exchange recognized by the competent authority; 2. statement that within the past 1 year, it, in its home country, or its branch unit in Taiwan, has not been sanctioned by a relevant authority or self-regulatory institution for securities or futures by the suspension of the securities or futures brokerage business of its head (or a branch) office; 3. statement that within the past 3 years, it has not breached a futures trading contract or securities trading contract in its home country or Taiwan, or violated the reporting obligations where the circumstances are serious; 4. statement that within the past 3 years, it has not had its omnibus account cancelled by this Corporation. A futures commission merchant processing account opening for an overseas Chinese or foreign national to engage in trading on this Corporation, after completing account-opening procedures, shall notify this Corporation.
Article 44-6
Article 44-7
Article 44-8
Article 44-9
Article 44-10
Article 44-11
Article 44-12
Article 44-13
Article 45
Article 46
Article 46-1 After a futures commission merchant has completed the procedures for opening an omnibus account and keyed the account information and number into the computer files of this Corporation, it shall file a report together with the documents listed below to this Corporation within three business days: 1. Photocopy of the omnibus account mandate contract. 2. Photocopy of the contract signed between the offshore foreign futures commission merchant and the domestic agent or the statement issued by the domestic agent. 3. Photocopy of certification that the offshore foreign futures commission merchant has completed identity registration. 4. Photocopy of certification that the offshore foreign futures commission merchant meets the conditions for opening an omnibus account. 5. Photocopy of the Power of Attorney by the offshore foreign futures commission merchant appointing an agent in Taiwan. 6. Photocopy of the identity document of the domestic agent. 7. Photocopy of the agreement of the outcome of negotiations in respect of the omnibus account position declarant. 8. Other documents required by this Corporation. The position declarant referred to in subparagraph 7 of the preceding paragraph must be the offshore foreign futures commission merchant, the domestic agent of the offshore foreign futures commission merchant, or the futures commission merchant processing the opening of the omnibus account. If the reported documents in paragraph 1 are incomplete or contain any falsehood, this Corporation may notify the futures commission merchant processing the opening of the omnibus account to supplement or correct them within a time limit; if the futures commission merchant fails to do so within the time limit, or the offshore foreign futures commission merchant does not meet the qualifications required to open an omnibus account, this Corporation may notify the futures commission merchant to immediately cease accepting orders from that offshore foreign futures commission merchant; provided, this restriction shall not apply to orders placed to dispose of pre-existing transactions. The futures commission merchant shall cancel the omnibus account opened by the offshore foreign futures commission merchant under the preceding paragraph after the claims and liabilities thereof have been fully settled.
Article 46-2
Article 47
Article 47-1
Article 48
Article 48-1
Article 48-2
Article 49
Article 49-1
Article 49-2
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Article 51
Article 52
Article 53
Article 53-1
Article 54
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Article 57
Article 57-1
Article 57-2
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Article 58-1
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