Regulations Governing Managed Futures Enterprises Article 17

A managed futures enterprise shall deposit an operating bond of NT$25 million in a financial institution designated by the Competent Authority following completion of company registration.The financial institution referred to in the preceding paragraph shall be a bank that is approved by the competent authority for custodial operations, and meets the conditions prescribed by the competent authority.The operating bond referred to in paragraph 1 may be in the form of cash, domestic government bonds, or securities whose ratings by a credit rating institution approved or recognized by the Competent Authority are of a certain level or higher.The operating bond deposited by a managed futures enterprise may not be deposited in multiple accounts, reported lost, or cancelled. No encumbrance may be created on either the underlying subject of the deposit or the custody certificates, nor may they be withdrawn or replaced by other items without the prior approval of the Competent Authority. However, an exception may be made for a withdrawal in connection with replacement of the operating bond with a different type of bond, provided that the total amount remains the same and that the circumstances of the change shall be reported to the Competent Authority within three days by the custodian institution.