| Article 1 |
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| Article 2 |
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| Article 3 |
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| Article 4 |
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| Article 5 |
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| Article 6 |
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| Article 7 |
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| Article 8 |
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| Article 9 |
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| Article 10 |
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| Article 11 |
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| Article 12 |
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| Article 13 |
The Contracts shall be settled in cash, with the futures trader delivering or receiving the net amount of the price differential in cash on the final settlement day based on the final settlement price.
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| Article 14 |
A futures commission merchant engaging in brokerage trading of the Contracts, prior to accepting an order, shall first collect a sufficient trading margin based on the aggregate total of the brokerage trading order, and from the date of the trade until the expiry of the settlement period, shall mark to market on a daily basis the balance of equity in the position held by each client based on the daily settlement price, and credit the aggregate total to the balance of the margin account of the client.
When the balance in a principal's margin account is lower than the required maintenance margin in the regular trading session, the futures commission merchant shall immediately notify the principal to deposit within a specified time sufficient cash funds to cover the difference between the balance in the margin account and the total amount of the trading margins required for the principal's open positions. If a principal fails to make the deposit within the prescribed time limit, the futures commission merchant may offset the positions on the principal's behalf.
The trading margin and the maintenance margin referred to in the preceding two paragraphs may not be lower than the publicly announced TAIFEX standard for the initial margin and the maintenance margin.
The initial margin and maintenance margin announced by the TAIFEX shall be based on the clearing margin calculated according to the TAIFEX Methods and Standards for Receipt of Clearing Margins plus a percentage prescribed by the TAIFEX.
Payment/receipt of the principal's margins referred to in paragraph 2 may be in New Taiwan Dollars or in a foreign currency publicly announced by the TAIFEX, as stipulated between the principal and the futures commission merchant, with the futures commission merchant acting as foreign exchange settlement agent. The futures commission merchant shall conduct the required exchange settlements in accordance with the Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements or Transactions prescribed by the Central Bank of China.
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| Article 15 |
The total open positions that a trader holds in the Contracts at any time on either the long or short side of the market may not exceed the limits publicly announced by the TAIFEX.
Every three months, or as occasioned by market conditions, the TAIFEX will announce the applicable position limit standards under the preceding paragraph, according to the levels given below, based on the higher of the daily average trading volume or the open position volume of the Contracts during that period, with the benchmark set at 5 percent thereof for individuals and 10 percent thereof for institutional investors. However, the lowest position limit shall be 1,000 contracts for individuals, and 3,000 contracts for institutional investors:
- When the benchmark is 1,000 or more contracts, the position limit is the benchmark rounded down to the nearest integral multiple of 200 contracts.
- When the benchmark is 2,000 or more contracts, the position limit is the benchmark rounded down to the nearest integral multiple of 500 contracts.
- When the benchmark is 5,000 or more contracts, the position limit is the benchmark rounded down to the nearest integral multiple of 1,000 contracts.
- When the benchmark is 10,000 or more contracts, the position limit is the benchmark rounded down to the nearest integral multiple of 2,000 contracts.
The position limit for a proprietary trader or a market maker for the Contracts shall be three times the position limit for an institutional investor set out in paragraph 2. The TAIFEX, however, may adjust this limit for market makers for the Contracts as it deems necessary in view of market conditions.
When the TAIFEX examines the applicable position limit levels, if the increase or decrease in the daily average trading volume or open position volume for the period, as compared to that at the time of the previous adjustment, does not exceed 2.5 percent, no adjustment will be made even if the level for adjustment has been reached.
Any raising of a position limit will take effect from the regular trading session on the next business day following the TAIFEX announcement date. Any lowering of a position limit will take effect from the regular trading session on the next business day following the expiration of the next-nearest month contract that is already listed on the announcement date. However, the TAIFEX may adjust the date according to circumstances.
When a position limit is lowered under the preceding paragraph, a position held by a trader prior to the effective date that surpasses the lowered limit may be held until the expiration date of the contract, provided that no new position may be added until the lowered limit has been complied with.
Total open positions in the Contracts held in an omnibus account are not subject to the limits of paragraph 2, with the exception of undisclosed omnibus accounts, which are subject to the limits for institutional investors.
An institutional investor may apply to the TAIFEX for a position limit increase based on hedging needs.
In addition to the provisions of this article, the limits on open positions in the Contracts held by traders shall also conform to the TAIFEX Rules Governing Surveillance Of Market Positions.
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| Article 16 |
Unless otherwise provided, a futures commission merchant engaging in proprietary or brokerage trading of the Contracts shall be subject to a limit of 100 contracts per trading quote.
The TAIFEX may make appropriate adjustments to the limit on the quantity per trading quote in the preceding paragraph in view of market trading conditions.
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| Article 17 |
Where any circumstance under Article 31 of the TAIFEX Operating Rules requires suspension of trading or delisting of the Contracts, the TAIFEX shall make a public announcement 30 days prior to implementation.
All open positions shall be liquidated by the announced implementation date for the suspension of trading or termination of listing. Any positions still open on the implementation date will be settled at the settlement price of the trading day preceding the implementation date.
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| Article 18 |
These Rules and their amendments shall be implemented following submission to and approval by the competent authority.
- RHF Final Settlement Price is being provided as part of and solely in connection with TAIFEX's regulatory obligations and shall not be used for any other independent purpose.
- USD/CNY(HK) Spot Rate ("Benchmark Data") is owned and administered by the Treasury Markets Association, and exclusively licenced through London Stock Exchange Group plc ("LSEG") and its affiliates. All rights remain reserved.
- None of LSEG, its affiliates or its third party providers warrant that the provision of the Benchmark Data will be uninterrupted, error free, timely, complete or accurate, nor do they make any warranties as to the results to be obtained from use of the same. Use of the Benchmark Data and reliance thereon is at user's sole risk. Neither LSEG or its third party providers will in any way be liable to user or any other entity or person for their inability to use the Benchmark Data, or for any inaccuracies (negligent or otherwise), errors, omissions, delays, computer virus or other infirmity or corruption, damages, claims, liabilities or losses, regardless of cause, in or arising from the use of the information. The Benchmark Data is provided on an "as is" basis and without warranty of any kind. No warranties either expressed or implied, including but not limited to any implied warranty of merchantability, fitness for a particular purpose, title, infringement or otherwise is provided hereunder.
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