Regulations Governing Leverage Transaction Merchants Article 11

In calculating the percentage accounted for by adjusted net capital in the total amount of customer margins required for the open positions of futures traders under Article 72, paragraph 1 of the Act, a futures commission merchant concurrently operating a leverage transaction merchant shall include leverage contract trading business, and the method of calculation shall comply with the rules of the competent authority.When the net worth of a futures commission merchant concurrently operating a leverage transaction merchant is lower than NT$800 million, or the percentage accounted for by adjusted net capital in the total amount of customer margins required for the open positions of futures traders is lower than 20 percent, it shall file a report with the competent authority, the TAIFEX, and the TPEx.When the net worth of a futures commission merchant concurrently operating a leverage transaction merchant is lower than NT$600 million, or the percentage accounted for by adjusted net capital in the total amount of customer margins required for the open positions of futures traders is lower than 15 percent, then except where necessary to deal with currently outstanding trades, it shall immediately cease trading leverage contracts, and submit a plan for corrective action to the competent authority, the TAIFEX, and the TPEx.The competent authority may adjust the monetary amounts and percentages of the preceding two paragraphs in view of domestic and foreign economic and financial conditions and the business conditions of leverage transaction merchants.