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Important Measures

Amendments to the Regulations Governing Futures Clearing Houses

2019-08-07
To align with Article 3 and 49 of the Futures Trading Act amended on January 16, 2019, including the addition of legal basis of OTC derivatives’ mandatory centralized clearing and the rules governing the order of financial security defense mechanism of reserve funds drawn upon to compensate for an event of default in the futures market as well as the reinforcement of the adequacy of compensation reserve fund by futures clearing houses, the FSC announced the amendments to the aforementioned Regulations on June 24, 2019. The amendments stipulated that the business scope of a futures clearing house shall include the clearance for futures trading in the non-centralized futures trading market, and that a futures clearing house shall determine and implement the order of financial security defense mechanism in which the various sources of reserve funds are drawn upon to compensate for an event of default in the futures market. Moreover, the FSC revised regulations to stipulate that a futures clearing house shall deposit NT$500 million compensation reserve fund for the first time and the aggregate compensation reserve fund deposit amount shall be up to 1.5 times the authorized capital amount or the allocated operating capital amount. It is also stipulated that the compensation reserve fund shall be deposited separately in different accounts based on the futures trading in the centralized futures trading market and non-centralized futures trading market.
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  • Update: 2019-08-07
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