Regulations Governing Futures Exchanges Article 13

A futures exchange shall carefully inspect the operation of the finance, business, and internal audit of its members or futures commission merchants, and shall prescribe auditing rules and report to the FSC for recordation. Upon discovery of any violation of laws or improper acts, a futures exchange shall immediately handle such situation appropriately and inform the FSC and the futures clearing house.In the event where a futures exchange discovers that the operation of its members or futures commission merchants are not sound and are experiencing a loss causing its loss of credit, or experiencing emergency events, or have material failure of its internal auditing operation, it shall immediately conduct a special examination and give them guidance.In the event that any members or futures commission merchants cannot perform the obligation of clearance and settlement, a futures exchange shall immediately conduct a special examination and supervise the designated replacement members or futures commission merchants to take over the relevant matters.The handling procedure and rules regarding the auditing and guidance referred to in the preceding Paragraph shall be drafted by the futures exchange in conjunction with the futures clearing house and reported to the FSC for approval. Any amendments to the said procedure and rules shall also be submitted to the FSC for approval.