Regulations Governing Leverage Transaction Merchants Article 10

A futures commission merchant approved by the competent authority for concurrent operation of a leverage transaction merchant shall first carry out amendment of its company registration, then deposit an operating bond of NT$10 million with a financial institution meeting the requirements of paragraph 2.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 under paragraph 1 shall be in the form of cash, domestic government bonds, or securities that have a rating of a specified level or higher from a credit rating institution approved or recognized by the competent authority.The operating bond deposited by a futures commission merchant concurrently operating a leverage transaction merchant may not be separately 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encumbrance may be created on either the underlying subject of the deposit or the custody certificates, nor may they be withdrawn or replaced with other items without the prior approval of the competent authority. However, a withdrawal may be made for the purpose of replacing the operating bond with a different type of bond, provided that the total amount remains the same and that the circumstances of the change are reported to the competent authority within 3 days by the custodian institution.