Regulations Governing the Operation of Futures Introducing Broker Business by Securities Firms Article 9-2

In any of the following events, a futures introducing broker shall report to the FSC:1. the futures introducing broker, or a responsible person, associated person, or other personnel thereof becomes involved in litigation or arbitration, or becomes subject to compulsory execution as an obligor, arising in connection with its business, or the futures introducing broker is a bankrupt, or has a negotiable instrument dishonored or is blacklisted by a bank;2. any of the conditions referred to in Article 28 of the Futures Trading Act applies to a responsible person or associated person of the futures introducing broker;3. a responsible person, associated person, or other personnel of the futures introducing broker has violated the Futures Trading Act or any order issued by the FSC pursuant to that Act.Any circumstance requiring reporting under the preceding paragraph shall be reported by the company within five business days from the date that the event occurred or that the company learned of it. The company shall submit the report to the Futures Exchange, which shall forward it to the FSC. The company also shall simultaneously notify the mandating futures commission merchant.The term "business day" as used in these Regulations means a trading day on the domestic futures market.