Regulations Governing Foreign Exchange Business of Securities Enterprises Article 46

The scope of spot foreign exchange transactions that a DSF may carry out with its customers is limited to the following:1.The DSF is handling a business with the same customer under any subparagraph other than Subparagraph 2 of Paragraph 1, Article 4 herein that has been approved by the Bank;2.The same securities firm acts as an recommending securities firm for an emerging stock company and has foreign exchange settlement needs in order to subscribe the stocks of foreign issuers as required by the competent authority; and3.The same securities firm acts as the lead underwriter, paying agent or registrar agent for NTD denominated securities issued by a foreign issuer in Taiwan under the approval of the competent authority and has related foreign exchange settlement needs.When carrying out spot foreign exchange transactions under Subparagraph 1 and 2 of the preceding paragraph, a DSF shall also observe the following rules:1.The amount of spot foreign exchange transaction shall not exceed the transaction amount and fees of the related securities business;2.The spot foreign exchange transaction shall be carried out only after the customer concluding the transaction of related securities business and shall be completed prior to the settlement date of the related securities business transaction;3.The transaction is not on a leveraged, margined or financed basis; and4.When the business involves repo trade of foreign currency securities with customers, only spot foreign exchange transaction between foreign currencies may be carried out.