TAIWAN FUTURES EXCHANGE-Clearing-OTC Derivatives Clearing-Clearing Member-Clearing Member Declaration

A clearing member's profile information is to be reported before the start of operation or within three business days after a change.
Changes in the list of a clearing member's directors, supervisors, managers, and shareholders with a more than 10% stake in the clearing member and changes in shareholding are to be reported by the fifteenth day of the following month.
Any succession agreement with another clearing member is to be reported to TAIFEX within five business days after the agreement is entered into.
Basic clearing account information is to be reported before the business day preceding the effective date for account opening or change.
A list of clearing supervisors and staff is to be reported within five business days after the change date.

2.Material business changes

Where a clearing member is in any of the circumstances that renders it unable to continue to meet the criteria for clearing members, such circumstance is to be reported by the tenth day of the following month.
Where a clearing member or its head office conducts a capital decrease that changes the capital by 10% or more of the initial paid-in capital, the capital decrease is to be reported to TAIFEX within five business days after the shareholder meeting passes the resolution.
Where a clearing member is in any of the circumstances listed in Article 11, Paragraphs 1, Subparagraphs 4 to 7 of the Taiwan Futures Exchange OTC Derivative Clearing Operating Rules, such circumstance is to be reported within five business days after the fact becomes known or occurs.
Suspension, resumption, and termination of a clearing member's business; or launch, addition, change, or termination of a clearing operation are to be reported in advance.
Revocation of a clearing member's or its head office's license to make derivatives transactions or conduct derivatives operations is to be promptly reported.
Suspension, revocation, or termination of a clearing member's or its head office's clearing membership by reasons of defaulting on a foreign exchange or clearing institution is to be promptly reported.
Clearing member who is unable to pay debts or is in danger of default due to significant deterioration in business or financial conditions, should report immediately.
Where a clearing member or its head office is required by foreign regulations to report financial ratio changes or other circumstances with a material impact on its financial structure, such requirement is to be promptly reported.
Where a clearing member or its head office conducts dissolution, liquidation, bankruptcy, restructuring, relief or other similar legal proceedings, such proceedings are to be reported in advance.
Interruption or failure of a clearing member's power supply, computer systems, or communication equipment; natural disasters, riots, or war; or other force majeure events that affect the normal operation or cause material losses is to be promptly reported.
For clearing members whose applications are subject to the conditions in paragraph 2 of Article 2.1.2 and Clause 1 to 3 under subparagraph 1 under paragraph 1 of Article 2.1.3, their financial holding company, foreign financial holding company, controlling company, or head office who has Clause 2, 4 to 9, shall report to TAIFEX in accordance with regulations.

3.Client clearing data

Client clearing and settlement contracts are to be reported within three business days after they are entered into between a clearing member and a client or amended.
Written statements made by clients are to be reported within three business days after a client clearing and settlement contract is entered into between a clearing member and a client.
Opening, change, or termination of an OTC client margin account is to be reported within five business days after the effective date.
Data on client default are to be reported on the respective default date.
Termination of a client clearing and settlement contract by a clearing member is to be reported ten or more business days prior to the termination date.
Where a clearing member terminates a relationship as a backup clearing member for a client, such termination is to be reported within three business days after the termination date.

4.Financial reporting

Monthly statements: to be filed by the fifteenth day of the following month.
Semiannual statements: to be filed within two months after the end of the second quarter of each fiscal year.
Annual statements: to be filed within three months after the end of each fiscal year.
Where Section 2.1.2, Paragraph 2 and Section 2.1.3, Paragraph 1, Subparagraph 1, Items 1 to 3 apply to a clearing member's application, the clearing member's financial holding company, foreign financial holding company, controlling company, or head office is to file semiannual financial statements and annual financial statements according to Items 3 and 4. If the competent authority in the place where the foreign head office is located has otherwise stipulated the deadline for filing, such stipulation shall prevail.

5.Financial structure reporting is to be completed according to the respective sector and within three months after the end of the second quarter of each fiscal year and the end of each fiscal year.

Where the clearing member is a bank, the Capital Adequacy Ratio is to be reported.
Where the clearing member is an insurance enterprise, the Risk Based Capital Ratio and Net Worth Ratio is to be reported.
Where the clearing member is a securities firm, the Regulatory Capital Adequacy Ratio is to be reported.
Where the clearing member is a bills finance company, the Capital Adequacy Ratio is to be reported.
Where the clearing member is a futures commission merchant that concurrently operates as a leverage transaction merchant, the percentage of adjusted net capital out of the total amount of customer margins required for the open positions of futures traders is to be reported.
Where the clearing member is a subsidiary of a financial holding company prescribed in the "Financial Holding Company Act", the capital adequacy ratio of the financial holding company or foreign financial holding company on a consolidated basis is to be reported.
Where the clearing member is a subordinate company prescribed in the "Company Act", the controlling company's financial structure information listed under Items 1 to 5 for the respective sector is to be reported.
Where the clearing member is a branch established within the territory of the R.O.C. by a foreign financial institution according to the law, the head office's financial structure information listed under Items 1 to 5 for the respective sector is to be reported. If the competent authority in the place where the foreign head office is located has otherwise stipulated the deadline for filing, such stipulation shall prevail.