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I. Basis for Adoption
Article 12 of the TAIFEX Trading Rules for NT Dollar Denominated Gold Futures Contracts and Article 16 of the Trading Rules for Gold Options Contracts
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II. The method for determining the final settlement price for the TAIFEX NT Dollar denominated gold futures contracts and gold options contracts.
- The price shall be determined based on the LBMA Gold Price AM as announced by ICE Benchmark Administration Limited (IBA) on the same calendar day as the last trading day, and the executed spot foreign exchange rate for NT dollars to US dollars at 11 a.m. as announced by Taipei Forex Inc., and after conversion for weight and fineness.
The formula is as follows: (LBMA Gold Price AM ÷ 31.1035 × 3.75 × 0.9999 ÷ 0.995*) x NTD/USD executed spot rate at 11 a.m.
In the event that the executed spot foreign exchange rate for NT dollars to US dollars at 11 a.m. announced by Taipei Forex Inc. referred to in the preceding paragraph has for any reason not yet been generated, the TAIFEX will determine the final settlement price based on the spot foreign exchange rate for NT dollars to US dollars generated at a time closest to 11a.m., after 11a.m.
*Note: One fine troy ounce is 31.1035 grams. One mace is 3.75 grams. The LBMA Gold Price is the price of refined gold of not less than .995 fineness. The underlying object of this contract is gold of .9999 fineness.
- When the LBMA Gold Price AM referred to in the preceding paragraph has for any reason not yet been generated before the TAIFEX executes procedures for settlement at expiration, the LBMA Gold Price PM as announced by ICE Benchmark Administration Limited (IBA) after market close on the same calendar day as the last trading day shall be the final settlement price.
- If the final settlement price cannot be determined pursuant to the preceding two subparagraphs, or is obviously unreasonable, the TAIFEX shall determine the price with reference to the price at major gold markets at, in the following order, New York, Chicago, Tokyo, or Hong Kong.
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