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Title: Taiwan Futures Exchange Corporation Regulations Governing Market Trading Surveillance
Date: 1998.03.18 ( Announced )
Date: 1998.03.18 ( Amended )

Article Content

 
Article 1     These regulations are specially promulgated pursuant to Article 5 of the Criteria Governing Oversight of Futures Trading and Article 115 of the Operating Rules of the Taiwan Futures Exchange Corporation to maintain fairness in futures trading and prevent unlawful manipulative acts.
Article 2     In executing market surveillance, this Corporation shall pay attention to the matters enumerated below; where futures trading is discovered to have reached the threshold of abnormality, trading information may be published and this Corporation may take any necessary measures set forth in Article 117 of this Corporation's Operating Rules:
  1. Prices of futures contracts and of the relevant underlyings, and fluctuations therein.
  2. Trading volumes and open positions of futures contracts, and fluctuations therein.
  3. Trading volumes, open position, and concentration of futures contracts of futures traders and futures commission merchants, and fluctuations therein.
  4. Supply and demand with respect to physical delivery of futures contracts.
  5. False market information and rumors.
  6. Other factors likely to affect market order
    Thresholds of abnormality in trading as referred to in the preceding paragraph shall be separately promulgated by this Corporation.
Article 3     When this Corporation discovers any abnormality in futures trading when exercising market surveillance, it may notify clearing members or futures commission merchants to be aware of the circumstances, and may make inquiries of clearing members or futures commission merchants and requisition relevant information, or notify them to provide explanations.
Article 4     If this Corporation discovers any abnormal event when exercising market surveillance, in addition to making any necessary disposition of the matter, it shall collect relevant information, analyze and study it, prepare a surveillance report, establish a complete reference file, and report to the competent authority within the prescribed deadline. Any violations of regulations of this Corporation shall be handled promptly. there is any suspicion of unlawful circumstances, the matter shall be directly submitted to judicial authorities and reported to the competent authority for recordation.
    This Corporation shall periodically hold surveillance/supervision meetings and shall compile analysis/review reports on its execution of market surveillance and report the same to the competent authority for recordation by the tenth day of each month.
Article 5     This Corporation may publicly announce market rumors or false media reports through information systems or in the places of business of securities firms or clearing members after having investigated and confirmed the existence of such rumors or reports.
Article 6     To guard against unlawful trading practices among markets, this Corporation may, after reporting to the competent authority for approval, enter into cooperation contracts regarding exchange of market information, technical cooperation, assistance in investigations, and so forth, with relevant domestic or foreign exchanges and institutions, and proceed with such information exchange or investigative assistance after reporting to the competent authority for approval.
Article 7     This Corporation shall establish a dedicated unit and personnel responsible for the execution of market surveillance operations. Relevant surveillance information shall be kept confidential except where cooperating, in accordance with law, with judicial authorities or relevant institutions in carrying out necessary investigative work.
Article 8     These regulations, and any amendments hereto, shall take force upon promulgation after ratification by the competent authority.