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Article 17 paragraph 1, Article 18 paragraph 3, Article 22, and Article 27 paragraph 2 of the Taiwan Futures Exchange Rules Governing the Use of Trading Information prohibit user applicants and data subscribers from evading or refusing inspection visits. These Rules are specially adopted to establish accountability and the working procedures of inspection personnel from the Taiwan Futures Exchange Corporation (TAIFEX).
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On any business day (Monday through Friday, 9 a.m. to 5 p.m.), the TAIFEX may dispatch personnel to visit a user applicant's head office or equipment room to inspect financial and business information related to its use of TAIFEX trading information, or to inspect its account books and supporting source documents, and TAIFEX personnel may also make inspection visits to data subscribers. An inspection visit may extend beyond business hours if necessary.
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It shall be deemed that a user applicant or data subscriber is evading or refusing examination if any of the circumstances listed below applies:
- The user applicant refuses without legitimate reason to receive and retain an examination letter officially signed and issued by the TAIFEX.
- The head office of the user applicant does not accommodate a request by a TAIFEX inspector to provide information relating to its use of TAIFEX trading information, including relevant financial and business information as well as account books and supporting source documents.
- The responsible person of the user applicant's equipment room was contacted, but it was still not possible to enter the equipment room according to the plan for the inspection visit.
- The user applicant's equipment room is unwilling or fails to accommodate a request to disconnect a modem with an irregular connection.
- Upon the discovery of irregularities during an inspection visit, the user applicant's equipment room refuses to provide evidentiary documents or a written explanation, or fails to do so within the prescribed time period.
- Upon arrival at a data subscriber's premises to conduct an inspection visit, no one answers the door or the subscriber has already moved, and the user applicant is unable to provide an explanation regarding the subscriber's usage situation.
- A data subscriber refuses an inspection visit, and the user applicant fails to cooperate by temporarily disconnecting that subscriber.
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Where any of the circumstances set forth in subparagraph 1 or 2 of the preceding point apply to a user applicant, the TAIFEX may impose a breach penalty of NT$100,00 and notify that user applicant of a deadline to take corrective or supplementary action pursuant to Article 31 of the Taiwan Futures Exchange Rules Governing the Use of Trading Information.
Where any of the circumstances set forth in subparagraphs 3 through 7 of the preceding point apply to a user applicant, the TAIFEX may impose a breach penalty of NT$200,000 and notify the user applicant of a deadline to take corrective or supplementary action pursuant to Article 32 of the Taiwan Futures Exchange Rules Governing the Use of Trading Information.
Where a user applicant is notified by the TAIFEX of a deadline to take corrective or supplementary action pursuant to the two preceding paragraphs, but fails to do so prior to that deadline, the TAIFEX may impose a breach penalty of NT$500,000 or terminate the user applicant's futures market usage contract pursuant to Article 33 of the Taiwan Futures Exchange Rules Governing the Use of Trading Information.
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Where any of the circumstances set forth in point 3 herein apply to a data subscriber, the TAIFEX may notify the user applicant to stop transmitting TAIFEX trading information to that data subscriber pursuant to Article 35 of the Taiwan Futures Exchange Rules Governing the Use of Trading Information.
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Matters on which these Rules are silent shall be handled in accordance with the relevant acts and regulations and the TAIFEX Trading Information Usage Contract.
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These Rules shall be publicly announced and implemented after submission to and final approval by the competent authority.
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