Regulations for Management, Utilization, and Supervision of the National Pension Insurance Fund Article 10

For engaging in financial derivatives transactions, the Fund shall trade via a financial institution approved by the competent financial, security, or futures authorities of the countries concerned and shall be processed in accordance with the following rules:1. Except for principal-guaranteed-typed products, investment shall, in principle, not increase the financial leverage of the Fund;2. To accommodate the need for the exchange hedge between New Taiwan Dollars and foreign currencies in relation to foreign investment, the Fund may engage in foreign exchange derivatives transactions within the amount limits and product scopes under the relevant regulations stipulated by the Central Bank;3. When engaging in non-foreign exchange derivatives, transactions may be conducted within the scope of trading contracts approved, published, or listed by the competent authority, exchanges, or over-the-counter markets of the countries concerned.The BLF shall draft measures regarding trading limits, trading counterparts, and risk management for engaging in financial derivatives transactions by the Fund. These measures shall be submitted to the Supervisory Commission for review and then sent to the Ministry of Health and Welfare for approval.