Important Measures
Amendments to the Futures Trading Act
2019-02-14
To promote domestic regulations to be in line with international practice, the amendments to the Futures Trading Act were passed by the Legislative Yuan on December 25, 2018, and enacted by the President on January 16, 2019. The key amendments were: (1) the legal basis of central clearing of OTC derivatives was increased; (2) it is stipulated that when default has occurred in the futures market, the order of payment of the compensation funds is prescribed by the futures clearing house and approved by the competent authority; (3) in order to contribute to the consistency of securities and futures related regulations, the Act stipulates the restrictions imposed on the transfer of shares of futures exchanges, the regulations that futures trust funds can adopt the effective registration, obligation of providing a prospectus, civil liability and extinctive prescription; (4) it is amended from criminal punishment to administrative fine for violation of the restrictions of futures categories and exchanges of futures trading that a futures commission merchant was mandated to engage in; (5) in order to enhance the legal compliance of futures enterprises and related organizations, reprimand and other necessary measures were added to the disciplinary methods that the competent authority can use, the maximum of administrative fines was raised to NT$2.4 million from NT$0.6 million, and the competent authority is also authorized to give exemption from punishment if the violations were slight.
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- Update： 2019-02-14
