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Operational Guidelines
- A futures broker accepting trading orders through DMA shall make relevant additions and amendments to its internal control and audit rules and in tandem therewith shall, two weeks prior to the launch date of DMA, report by letter to the Taiwan Futures Exchange for recordation the DMA launch date, descriptions of the structure, procedures, and control mechanisms for the data transmission, written declarations ensuring that personal identification, data integrity, data security, and non-repudiation are achieved, and shall complete all reporting procedures on the Futures Brokers’ Online Reporting System.
- A futures broker shall report a principal’s account information to the Taiwan Futures Exchange before accepting trading orders by DMA from that principal. When a principal discontinues using DMA to place orders or its brokerage contract is terminated, the broker shall report to the Taiwan Futures Exchange within one week after learning of the discontinuance or termination.
- A futures broker intending to accept trading orders by DMA shall establish procedures for computer screening and management to ensure that each trading order complies with relevant regulations. When submitted to the Taiwan Futures Exchange, trading orders submitted by DMA, like trading orders submitted by other means, shall specify the time of submission and serial number of the order. Skipping, omitting, or repeating numbers is not allowed. Trading orders submitted by DMA and those submitted by other means shall be treated fairly in terms of the order of processing.
- When the network access points between a futures broker (or its overseas branches) and principals that submit orders by DMA are both located outside the Republic of China, the network connections shall comply with the local laws and regulations of the country(ies) in which they are located. The trading system between such connection points and the Taiwan branch (headquarters) of such futures broker shall be connected through a private circuit or the future broker’s private trading network.
- A futures broker accepting trading orders by DMA, or in any other manner, shall in all instances faithfully comply with relevant futures market regulations, and realistically implement information and communications security and risk control, and shall refrain from many practice that could affect the order and efficiency of the centralized futures exchange market.
- When a futures broker accepts trading orders by DMA, if any malfunction occurs with a likelihood that marker order will be affected, the Taiwan Futures Exchange may ask the future broker to temporarily suspend, limit, or prohibit its clients, in part or in whole, from submitting trading orders by DMA.
- A futures broker accepting trading orders by DMA shall on its own initiative prescribe procedures for handling malfunctions. If the private circuit is disrupted, the futures broker’s computer system breaks down, or there is any likelihood that the information or communication security is compromised, the futures broker shall follow the procedures for handling malfunctions that it has prescribed. When necessary, it may notify the principals that the DMA will be temporarily suspended and that trading orders should be submitted by other means until such time as the malfunctions have been cleared up or the information and communication security is ensured, at which time it shall notify the principals that they may resume placing orders by means of DMA.
Operational Guidelines
- A futures broker accepting trading orders through DMA shall make relevant additions and amendments to its internal control and audit rules and in tandem therewith shall, two weeks prior to the launch date of DMA, report by letter to the Taiwan Futures Exchange for recordation the DMA launch date, descriptions of the structure, procedures, and control mechanisms for the data transmission, written declarations ensuring that personal identification, data integrity, data security, and non-repudiation are achieved, and shall complete all reporting procedures on the Futures Brokers’ Online Reporting System.
- A futures broker shall report a principal’s account information to the Taiwan Futures Exchange before accepting trading orders by DMA from that principal. When a principal discontinues using DMA to place orders or its brokerage contract is terminated, the broker shall report to the Taiwan Futures Exchange within one week after learning of the discontinuance or termination.
- A futures broker intending to accept trading orders by DMA shall establish procedures for computer screening and management to ensure that each trading order complies with relevant regulations. When submitted to the Taiwan Futures Exchange, trading orders submitted by DMA, like trading orders submitted by other means, shall specify the time of submission and serial number of the order. Skipping, omitting, or repeating numbers is not allowed. Trading orders submitted by DMA and those submitted by other means shall be treated fairly in terms of the order of processing.
- When the network access points between a futures broker (or its overseas branches) and principals that submit orders by DMA are both located outside the Republic of China, the network connections shall comply with the local laws and regulations of the country(ies) in which they are located. The trading system between such connection points and the Taiwan branch (headquarters) of such futures broker shall be connected through a private circuit or the future broker’s private trading network.
- A futures broker accepting trading orders by DMA, or in any other manner, shall in all instances faithfully comply with relevant futures market regulations, and realistically implement information and communications security and risk control, and shall refrain from many practice that could affect the order and efficiency of the centralized futures exchange market.
- When a futures broker accepts trading orders by DMA, if any malfunction occurs with a likelihood that marker order will be affected, the Taiwan Futures Exchange may ask the future broker to temporarily suspend, limit, or prohibit its clients, in part or in whole, from submitting trading orders by DMA.
- A futures broker accepting trading orders by DMA shall on its own initiative prescribe procedures for handling malfunctions. If the private circuit is disrupted, the futures broker’s computer system breaks down, or there is any likelihood that the information or communication security is compromised, the futures broker shall follow the procedures for handling malfunctions that it has prescribed. When necessary, it may notify the principals that the DMA will be temporarily suspended and that trading orders should be submitted by other means until such time as the malfunctions have been cleared up or the information and communication security is ensured, at which time it shall notify the principals that they may resume placing orders by means of DMA.
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