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Title: Taiwan Futures Exchange Corporation Clearing Member Application Procedures
Date: 2003.07.24 ( Announced )
Date: 2017.12.21 ( Amended )

Article Content

 
Article 1     These Procedures are promulgated pursuant to paragraph 2 of Article 74 of the TAIFEX Operating Rules.
Article 2     An application for clearing membership shall be filed with the TAIFEX and accompanied by the following documents:
  1. Application form (format as per Attachment 1).
  2. Documents evidencing company registration and documents evidencing business registration.
  3. Documents evidencing permission by the Competent Authority to handle futures commission merchant business.
  4. A business plan specifying: principles of business operation; risk management measures for head and branch offices; internal organization and division of labor; recruitment and training of personnel; description of site facilities; and financial projections for the fiscal year of commencement of business and the next fiscal year thereafter.
  5. Company's internal control system..
  6. Financial report for the most recent fiscal year or for the most recent period audited and attested by a certified public accountant and in compliance with Article 24, paragraph 2 of the Rules Governing Futures Commission Merchants.
  7. Register of directors and board of directors meeting minutes.
  8. List of managers and associated persons and registration forms for the futures clearing managers and associated persons (format as per Attachment 2).
  9. Documents evidencing compliance with the standards for sites and facilities prescribed by the National Federation of Futures Industry Associations.
  10. Other documents required by the TAIFEX.
Article 3     When entering into a clearing and settlement contract with the TAIFEX, the clearing member shall provide all the following documents:
  1. Documents evidencing the deposit to the clearing and settlement fund in accordance with the Taiwan Futures Exchange Corporation Criteria for Clearing Membership.
  2. Copy of the contract opening the Proprietary Clearing Margin Account and the Client Clearing Margin Account with the settlement bank, and the Statements for the Segregated Margin Accounts of the Clearing Member/Futures Commission Merchant (the settlement banks for New Taiwan Dollar account and multi-currency account shall be filed separately, with a maximum of two settlement banks for each account; format as per Attachment 3 ).
  3. Chop specimen card.
  4. Documents evidencing payment of the registration fee and the annual license fees.
  5. Other documents required by the TAIFEX.
    If a clearing member wishes to change the settlement bank under subparagraph 2 of the preceding paragraph, it shall report to the TAIFEX before making the change. Directions for relevant matters will be separately adopted by the TAIFEX.
Article 4     Within two months of obtaining membership, a clearing member shall submit a photocopy of the succession agreement signed by another clearing member under Article 54 of the Futures Trading Law and submit it to the TAIFEX for recordation.
Article 5     In the event that application documents submitted under these Procedures are incomplete or are deficient in content, and there is failure to make supplementation or correction within a time period prescribed by the TAIFEX, the TAIFEX may return the application documents.
Article 6     Where any document required under these Procedures is prepared in a foreign language, its Chinese translation shall also be provided.
Article 7     A clearing member applying for cancellation of clearing membership shall file an application with the TAIFEX one month prior to the cessation of clearing and settlement operations, attaching the following documents.
  1. Application for cancellation of clearing membership (format as per Attachment 4).
  2. Board of directors meeting minutes.
  3. Clearing and settlement contract.
  4. Certificate of clearing membership.
Article 8     Within five days of receiving from the TAIFEX the letter approving the cancellation of membership, the clearing member shall publish prominently in no less than three daily newspapers for at least two days a public announcement specifying the date of cessation of consigned clearing and settlement operations and the clearing member to succeed to the handling of its operations; the public announcements shall be reported via letter to the TAIFEX with the announcements attached.