With the aim of making the futures transaction types complete, promoting central clearing of OTC derivatives and enhancing the futures market legal compliance regulations, the FSC has drafted amendments to the Futures Trading Act. A meeting at which it was discussed by representatives from industry, government and academia was convened; the draft was then revised with reference to outside opinions. The draft amendment will be submitted to the Executive Yuan for review and then sent to the Legislative Yuan for deliberation.
11 articles of the Futures Trading Act will be amended, the main points are as the following :(1) Stipulation of the legal basis of the promotion of central clearing of OTC derivatives to make the futures transaction types complete. (2) Authorization of the clearing house to stipulate the waterfall of financial safeguards for the futures market to align with international practice.(3) Stipulation that futures trust funds can adopt the effective registration system and the responsibility to provide prospectuses of futures trust enterprise.(4) Increasing the methods for corrective action and taking other necessary disposition against futures-related agencies.(5) Revocation of the criminal penalty for violation of Article 5 of the Act by futures firms and adding an administrative penalty regulation (6) Strengthening the legal compliance of futures-related institutions, increasing the maximum fine and exemption from punishment regulation. The FSC stated that these amendments of the Act will enhance domestic OTC derivatives market supervision and promote overall risk control efficiency of the futures market.