Regulations Governing Securities Firms Article 19-2

Exchange settlement matters for securities firms engaging in proprietary trading of securities denominated in a foreign currency or engaging in trading that involves any foreign derivative financial product shall be handled in accordance with the Regulations Governing the Reporting of Foreign Exchange Receipts and Disbursements or Transactions.A securities firm may conduct the trading referred to in the preceding paragraph only in the capacity of a customer, through a designated bank approved by the Central Bank to conduct derivative foreign exchange product business or through an overseas financial institution.Except as otherwise provided by the Central Bank, a securities firm engaging in proprietary trading of securities denominated in a foreign currency, when conducting payment of settlement funds and fees by remittance of the exchange of New Taiwan Dollars or of the original foreign currency from Taiwan to the overseas settlement account, or when having fees remitted back into Taiwan from abroad, shall do so through a segregated foreign exchange deposit account in the selected foreign currency that it has opened at a designated foreign exchange bank.