Regulations Governing Securities Investment Trust Funds Article 9

When a SITE utilizes a fund for trading in securities-related products, the scope of trading shall conform with the following provisions:1. Authorized trading that futures commission merchants ("FCM") are allowed to handle per FSC announcement in accordance with Article 5 of the Futures Trading Act, and trading in securities-related futures contracts, option contracts, and futures option contracts.2. FSC approved off-exchange trading in futures, options or other financial products which are currency-derived, securities-derived, interest-rate derived, or index-derived.When a SITE utilizes a fund to trade securities-related products, it may be exempt from the restrictions of subparagraph 1 of the preceding paragraph when such trading is necessary to match the fund's investment strategy and when the FSC has granted special approval.The method of calculating the ratios and risk exposures for the types of trading listed in the 2 preceding paragraphs and related regulatory measures shall be announced by the FSC.When a SITE has received FSC approval for concurrent operation of a futures trust enterprise, it may apply to the FSC for exemption from the restriction of the preceding paragraph regarding trading ratios when utilizing a fund of the enterprise, other than a passive exchange-traded fund as specified in Article 37-1, for trading in securities-related products. Risk exposure, however, may not exceed 100 percent of the net asset value of the given fund.A SITE that utilizes a fund for trading in securities-related products shall draft measures for accounting, risk monitoring, and management for those types of trades as part of its internal control system, and submit the measures to the board of directors for passage.