| 1 |
The undersigned __________________("Customer") hereby authorizes _________Futures Co., Ltd. ("Company"), with respect to Taiwan Futures Exchange Corporation (TAIFEX) stock option contract call writing (the "Transaction"), to deposit, per the instructions of Customer, a certain number of shares of the underlying securities to meet the trading margin requirement. The parties hereby agree as follows:
- When placing an order with Company to carry out the Transaction, Customer may deposit a certain number of shares of the underlying securities of the contract as the trading margin required before the transaction, or as the margin required for an application to release open positions. However, the same shall not apply to a basket trading order, combination of assigned positions, or a stock option contract that has been adjusted due to capital reduction or statutory consolidation by the issuer of the underlying securities.
- To carry out the Transaction, Customer shall first instruct a securities firm to transfer the underlying securities to Customer's "Margin Account for Deposit of Underlying Securities for Call Writing" at the TAIFEX.
- Before accepting the order to carry out the Transaction or releasing the margin required for the open positions in the Transaction, Company shall, on the morning of the business day following Customer's transfer of the underlying securities, ascertain that Customer has truly made such transfer.
- Except where Customer withdraws the underlying securities pursuant to Article 5, Company will not make daily mark-to-market adjustment to the margin required for the positions held by Customer in the Transaction, and, when the market movement is unfavorable to Customer, is not required to make a margin call to Customer.
- To withdraw the underlying securities deposited in the TAIFEX margin account, Customer shall submit an application with Company by 2:15 p.m. on a business day. Upon satisfaction that the total equity in Customer's margin account exceeds the margin requirement, Company will then file an application with TAIFEX. Customer may not withdraw the deposited underlying securities without the consent of Company.
- At maturity of the stock option contract, the underlying securities deposited by Customer will be automatically delivered in a number of shares corresponding to each open position in the Transaction. Customer may apply in advance to use any number of shares of the underlying securities that are not assigned for such delivery to exercise long put positions. Customer shall be responsible for the commission, tax, and other applicable fees arising from such delivery at maturity.
- As regards the "Margin Account for Deposit of Underlying Securities for Call Writing" opened with the TAIFEX for the purpose of the Transaction, any entitlements arising from any distribution of cash dividends, capitalization of capital reserve or earnings, or cash capital increase by the issuer of the underlying securities deposited in the margin account shall be owned by the Customer according to the number of shares, and the rights pertaining thereto, of the underlying securities deposited by Customer.
- When as a result of the occurrence to Customer of an event in any subparagraph of Article 10 of the mandate contract between the two parties, after Company has liquidated all of Customer's positions (including open short call positions for which underlying securities have been deposited), the total equity in Customer's margin account is negative, Company shall promptly notify Customer to supplement the deficit in cash within three business days. If Customer fails to supplement sufficient cash within the time limit, Company may directly apply to the TAIFEX to withdraw the underlying securities deposited by Customer in the TAIFEX "Margin Account for Deposit of Underlying Securities for Call Writing" and take further actions under Article 9. Customer may not object.
- As for the underlying securities withdrawn by Company under the preceding Article, Company shall, within three business days after the day on which the withdrawal application is made, dispose of the securities on a centralized securities exchange market using a segregated account it has opened with a securities broker. The money obtained from such disposal, after deduction of the commission, tax, and other applicable fees incurred by the disposal, shall be credited to the total equity in Customer's margin account, with a notice to Customer. Where the margin account equity is still in negative figures after such credit, Company shall promptly file a report with the TAIFEX stating Customer's default, and the provisions of Article 20 of the mandate contract regarding notification to Customer to take proper action within three business days shall not apply.
- As for the underlying securities subject to disposal under the preceding article, where Company is unable to dispose of the full amount of the securities within three business days, it shall nevertheless still promptly file a report with the TAIFEX stating Customer's default, and may continue to dispose of the securities. Customer may not request Company to return the underlying securities until Customer's obligations to Company are fully satisfied.
- Underlying securities that Company may apply to the TAIFEX to withdraw under Article 8 are to be treated in units of a thousand shares, and the value of the securities represented by the amount [to be withdrawn] shall be limited to that sufficient to cover the negative total equity value in Customer's margin account.
- This Agreement constitutes an integral part of the mandate contract signed between Customer and Company. Matters not stipulated herein shall be handled pursuant to the TAIFEX Directions for Futures Commission Merchants and Clearing Members Handling Deposits by Stock Call Option Writers of Underlying Securities as Margin and other relevant provisions.
Customer (individual account): ____________________ (signature or seal)
National ID Number:
Futures Account Number:
Customer (juristic person account): ____________________
Representative: ____________________ (signature or seal)
Representative's National ID Number:
Government Uniform Invoice Number on the Business License:
Futures Account Number:
Company: ○○ Futures Co., Ltd.
Representative: ____________________ (signature or seal)
Government Uniform Invoice Number on the Business License:
This ________ day of__________ of ______________.
The undersigned __________________("Customer") hereby authorizes _________Futures Co., Ltd. ("Company"), with respect to Taiwan Futures Exchange Corporation (TAIFEX) stock option contract call writing (the "Transaction"), to deposit, per the instructions of Customer, a certain number of shares of the underlying securities to meet the trading margin requirement. The parties hereby agree as follows:
- When placing an order with Company to carry out the Transaction, Customer may deposit a certain number of shares of the underlying securities of the contract as the trading margin required before the transaction, or as the margin required for an application to release open positions. However, the same shall not apply to a basket trading order, combination of assigned positions, or a stock option contract that has been adjusted due to capital reduction or statutory consolidation by the issuer of the underlying securities.
- To carry out the Transaction, Customer shall first instruct a securities firm to transfer the underlying securities to Customer's "Margin Account for Deposit of Underlying Securities for Call Writing" at the TAIFEX.
- Before accepting the order to carry out the Transaction or releasing the margin required for the open positions in the Transaction, Company shall, on the morning of the business day following Customer's transfer of the underlying securities, ascertain that Customer has truly made such transfer.
- Except where Customer withdraws the underlying securities pursuant to Article 5, Company will not make daily mark-to-market adjustment to the margin required for the positions held by Customer in the Transaction, and, when the market movement is unfavorable to Customer, is not required to make a margin call to Customer.
- To withdraw the underlying securities deposited in the TAIFEX margin account, Customer shall submit an application with Company by 2:15 p.m. on a business day. Upon satisfaction that the total equity in Customer's margin account exceeds the margin requirement, Company will then file an application with TAIFEX. Customer may not withdraw the deposited underlying securities without the consent of Company.
- At maturity of the stock option contract, the underlying securities deposited by Customer will be automatically delivered in a number of shares corresponding to each open position in the Transaction. Customer may apply in advance to use any number of shares of the underlying securities that are not assigned for such delivery to exercise long put positions. Customer shall be responsible for the commission, tax, and other applicable fees arising from such delivery at maturity.
- As regards the "Margin Account for Deposit of Underlying Securities for Call Writing" opened with the TAIFEX for the purpose of the Transaction, any entitlements arising from any distribution of cash dividends, capitalization of capital reserve or earnings, or cash capital increase by the issuer of the underlying securities deposited in the margin account shall be owned by the Customer according to the number of shares, and the rights pertaining thereto, of the underlying securities deposited by Customer.
- When as a result of the occurrence to Customer of an event in any subparagraph of Article 10 of the mandate contract between the two parties, after Company has liquidated all of Customer's positions (including open short call positions for which underlying securities have been deposited), the total equity in Customer's margin account is negative, Company shall promptly notify Customer to supplement the deficit in cash within three business days. If Customer fails to supplement sufficient cash within the time limit, Company may directly apply to the TAIFEX to withdraw the underlying securities deposited by Customer in the TAIFEX "Margin Account for Deposit of Underlying Securities for Call Writing" and take further actions under Article 9. Customer may not object.
- As for the underlying securit
|