Regulations Governing the Operation of Futures Introducing Broker Business by Securities Firms Article 17

Upon FSC approval for operation of futures introducing broker business, a securities firm shall, after carrying out amendment of its business registration, open a special account with the financial institution designated by the FSC for depositing the operation bond. This rule shall apply to its branch office upon FSC approval for operation of futures introducing broker business.The operation bond to be deposited by a futures introducing broker under the preceding paragraph shall be NT$10 million; the operation bond for each branch office is NT$5 million.The financial institution referred to in paragraph 1 shall be a bank that is approved by the FSC to operate custodial business, and meets the conditions prescribed by the FSC.When the futures introducing broker is a financial institution that concurrently operates futures brokerage business, its operation bond shall be deposited with another financial institution.The operation bond referred to in paragraph 1 above shall be paid in cash or by government bond or financial bond.The operation bond deposited by a securities firm operating futures introducing broker business shall not be separately deposited in different places, and the condition of reporting of loss or contract termination shall not be allowed for the operation bond. The deposited operation bond and certificate of depository thereof shall not be used as securities, and unless approval has been granted by the FSC, the deposited operation bond shall not be withdrawn or replaced.