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III. Method of calculation
The method of calculating "accumulated NT Dollar realized gains" for reporting by offshore overseas Chinese and foreign nationals is as follows:
(1) Formula for calculation:
Reported "accumulated NT Dollar realized gains" (A) = (current day) accumulated NT Dollar realized gains or losses (B) ± (current day) foreign exchange settlement amounts － (current day) losses on open futures positions － (current day) initial margin requirements for open positions
(2) Explanation:
1. Reported "accumulated NT Dollar realized gains" (A) refers to the actual NT Dollar amount held by offshore overseas Chinese and foreign nationals and reported daily to the foreign exchange authority. Reported amounts may be positive or negative.
2. (Current day) accumulated NT Dollar realized gains or losses (B) = (previous day) account balance ± (current day) gains or losses on closed or matured futures positions ± (current day) option premium receipts or payments ± (current day) gains or losses on expired options － (current day) transaction fees － (current day) futures transaction taxes.
2.1 [ (Current day) accumulated NT Dollar realized gains or losses (B) ± (current day) foreign exchange settlement amounts] (C), is the "account balance" in the customer trade report of the futures commission merchant, and after totaling is carried over to the next day.
2.2 (Current day) gains or losses on closed or matured futures positions: gains or losses on futures trades after closing out trades in same-month contracts of the same futures product. For settlement at maturity, gains or losses are calculated based on the difference between the final settlement price and the initial purchase (or sale) price. (Government bond futures are calculated based on the difference between the final settlement price and the initial purchase (or sale) price; stock futures are calculated by using the final settlement price to calculate the underlying value of the contract).
2.3 (Current day) option premium receipts or payments: the balance of receipts and payments of premiums on options traded.
2.4 (Current day) gains or losses on expired options: When an option is exercised and settled at maturity, realized gain or loss is calculated as the spread between the final settlement price and the strike price. For stock options, gains or losses on settlement at maturity are calculated as the spread between the closing price of the underlying stock on the expiry date and the strike price. The value is zero when the option is not exercised.
2.5 (Current day) transaction fees: Transaction fees related to futures trading.
2.6 (Current day) futures transaction taxes: tax amounts payable pursuant to the provisions of the Futures Transaction Tax Act.
3. (Current day) foreign exchange settlement amount: When NT Dollars are converted to a TAIFEX-announced foreign currency, the amount of that settlement shall be stated as a deduction from the reported accumulated NT Dollar realized gains; when foreign currency is converted to NT Dollars, the amount of that settlement shall be stated as an addition to the reported accumulated NT Dollar realized gains.
When the accumulated NT Dollar realized gains and losses are negative (i.e., there is a realized loss), the time and amount of the settlement shall be as set out in the appended "Details of Foreign Exchange Settlements for Accumulated NT Dollar Realized Losses by Offshore Overseas Chinese and Foreign Nationals."
4. (Current day) amount of losses on open futures positions:
Current day amount of losses on open futures positions: the amount of "Floating gains or losses on open positions" listed in daily trade reports; if that amount is a negative value, it shall be a deduction from accumulated NT Dollar realized gains.
5. (Current day) initial margin requirement for open positions:
Initial margin requirements for open positions include the following:
5.1 The initial margin requirement for open long or short futures positions.
5.2 Initial margin requirements for open options positions: the combined margin required for short positions and combination positions.
6. (Current day) accumulated NT Dollar realized gains or losses (B) plus or minus (current day) foreign exchange settlement amount, i.e., (C), is the "account balance" given in the customer trade report of the futures commission merchant, and is carried over to the following day; (current day) losses on open futures positions and (current day) initial margin requirements for open positions are adjusted daily on a marked-to-market basis. |
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