Clearing
Intraday Margin Calls
| Insufficient margin |
|
|---|---|
| Margin call | The margin call notification, which shall specify the amount by which the margin is insufficient and the type of account, will be issued to the clearing member’s computer system via online connection. In order that delay in increasing the margin to the required level may be avoided, TAIFEX shall, in addition to sending information via online computer connection, notify the clearing member by telephone to ensure that the notification has indeed been received by the clearing member. |
| Requirement for meeting margin call within 1-hour | In accordance with Paragraph 2, Article 89 of the Operating Rules of the Taiwan Futures Exchange Corporation and Point 4 of the Taiwan Futures Exchange Operational Key Points of Clearing and Settlement for Futures Commission Merchants and Clearing Members, the clearing member is required to increase the margin to the minimum required level within one hour after receiving the online computer notification from TAIFEX. If clearing member is not possible to deposit margin in the foreign currency beyond banking hours, the clearing member may first deposit the funds with the TAIFEX in New Taiwan dollars or other foreign currency announced by the TAIFEX. |
| Intraday margin payment method | In the event that an intraday increase of the balance
of the margin account is required, the clearing member shall
proceed with the following in accordance with Point 4 and
Point 16 of the Taiwan Futures Exchange Operational Key Points
of Clearing and Settlement for Futures Commission Merchants
and Clearing Members:
|
| Verification | One hour after issuing an intraday margin call, TAIFEX shall verify the detailed deposit information printed on the settlement bank’s terminal. If the information is confirmed to be correct, TAIFEX shall execute the “Clearing Margin Deposit” function and register the amount of the margin into the appropriate accounts of the clearing member on the settlement system. |
| Failure to meet margin call | In the event that the clearing member fails to increase the balance of its margin account to the required level, TAIFEX may carry out the necessary steps to resolve the problem pursuant to Chapter 12, Disposition of Defaults by Clearing Members, Operating Rules of the Taiwan Futures Exchange Corporation. |
| Flow Chart |  |
| Legal basis |
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