Regulations Governing Futures Commission Merchants Article 25-2

An offshore foreign futures commission merchant meeting the following requirements may open an omnibus account:1. Is a member of an FSC-recognized foreign futures exchange.2. A futures-related government authority or self-regulatory organization has not sanctioned its head office (or any branch thereof) in its home country by ordering a temporary suspension of its securities or futures brokerage business in the preceding 1 year.3. In the preceding 3 years, has not committed a material violation of a market trading contract or of its filing obligations.An overseas subsidiary in which a securities firm or futures commission merchant holds more than 50 percent of the shares may open an omnibus account if it is approved by the local competent authority to operate futures brokerage business and meets the requirements of subparagraphs 2 and 3 of the preceding paragraph.For an omnibus account that has already been opened, where it is discovered that any of the requirements of the preceding paragraph are not met the futures commission merchant shall immediately stop accepting orders for that account. However, this requirement does not apply to orders placed to offset open positions.After the open positions of the account referred to in the preceding paragraph are closed out, the futures commission merchant shall cancel the account.