Regulations Governing Futures Clearing Houses Article 15

A futures clearing house shall, in accordance with Article 53 of the Act, allocate compensation reserve funds separately for on-exchange and off-exchange futures trading and shall for each such compensation reserve fund initially deposit a lump-sum amount of NT$500,000,000 and subsequently continue to deposit twenty percent (20%) of the income from clearing and settlement fee within 15 days after the end of each quarter, provided that this requirement does not apply once a separate compensation reserve fund's total deposit amount equals 1.5 times the authorized capital amount or allocated operating capital amount of the futures clearing house.The separately allocated and deposited compensation reserve funds referred to in the preceding Paragraph shall be deposited in different dedicated accounts at a bank that has been approved by the FSC to engage in custodian business.A futures clearing house shall not lend its compensation reserve funds to others or use them for other purposes, and their usage shall be limited to the following purposes:1. bank deposit;2. purchasing treasury bond and government bond;3. other purposes as approved by the FSC.A futures clearing house shall enter into a custody agreement regarding the time deposit, treasury bond or government bond as referred to in the preceding Paragraph with the bank where the designated account was opened; the said time deposit, treasury bond or government bond shall be kept in custody by the said bank; there may not be separate storage, reporting of losses, or cancellation of contracts. Encumbrances may not be created on the objects deposited and the certificates of deposit, and without the approval of the FSC, no withdrawals or replacements may be made.