Foreign Participation
After-hours Margin Calls
| Margin call | Pursuant to Paragraph 2, Point 7 of the Operational Key Points of Clearing and Settlement for Clearing Members, if the clearing member’s margin (proprietary or client) is less than the minimum margin requirement at the time of settlement (after the market is closed), the clearing member shall of its own accord increase the margin to the required level within the hours of operation. For example, if, on June 1, the margin of Clearing Member A is NT$25 million at the closing settlement, but the minimum requirement is NT$32 million, then Clearing Member A shall increase the margin by NT$7 million. |
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| Deadline for margin call (operational hours) | As stated in Paragraph 1, Point 7 of the Key Points of Clearing and Settlement for Clearing Members, after hours margin payments of the contracts whose closing time is 1:45 pm must be made prior to 3:30 pm on the day that the balance of the margin account falls below the required minimum; after hours margin payments of the contracts whose closing time is 4:15 pm must be made prior to 5:30 pm on the day that the balance of the margin account falls below the required minimum. However, for flexible contracts, the deadline of after hours margin payments is before 5:30 pm. |
| How to increase margin | If the clearing member is required to increase the
margin at settlement after the market is closed, the
provisions of Paragraph 2, Point 7 of the Operational Key
Points of Clearing and Settlement for Futures Commission
Merchants and Clearing Members shall be followed:
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| Transmission of margin call data (settlement banks) | In accordance with the provisions of Article 87 of the Operating Rules of the Taiwan Futures Exchange Corporation, the exchange’s settlement system shall send the post-settlement margin call information and gain (loss) information for a clearing member to the settlement bank designated by the clearing member via the established network connections before 5:30 p.m. each day. TAIFEX shall also send the printed information by fax to each settlement bank for verification purposes. Additional printed copies and magnetic disks will also be provided. |
| Transfer funds before 5:30 p.m. | Settlement banks are required to verify the accuracy of the printed and electronically transmitted information before conducting fund transfer operations. They are also required to notify TAIFEX of the results of the fund transfer before 5:30 p.m. on the same day. |
| Failure to meet margin call | If TAIFEX is unable to confirm that a clearing member has increased the balance of its margin account to the minimum level, the member shall be deemed to be in default pursuant to Article 101 of the Operating Rules of the Taiwan Futures Exchange Corporation. TAIFEX may take appropriate and necessary steps against any clearing member deemed to be in default in accordance with Chapter 12 of the Operating Rules, Disposition of Defaults by Clearing Members. |
| Flow Chart |  |
| Legal basis | Point 7 of the Taiwan Futures Exchange Operational Key Points of Clearing and Settlement for Futures Commission Merchants and Clearing Members |
