TAIWAN FUTURES EXCHANGE-Foreign Participation-Other Instruction on Trading/Clearing Procedure-Clearing -Margin Call-Intraday Margin Calls

Insufficient margin	In the event that the margin balance of a clearing member does not meet the minimum margin requirement due to intraday mark-to-market losses or potential losses, TAIFEX shall issue an intraday margin call to the clearing member. In the overlap between regular trading and after-hours trading (15:00–16:15): After-hours trading session margin calls are handled together with that day’s regular trading session intraday margin calls. When a clearing member has insufficient clearing margin, TAIFEX issues a margin call notice. During the after-hours trading session following the conclusion of the regular trading session for all products (16:15 – 05:00): Margin calls are not issued. Clearing members may become aware of margin situations in a timely manner via TAIFEX’s clearing-member excess margin use-ratio warning notices, or may use the system to inquire about excess margin usage.
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: The required amount shall be deposited into the appropriate clearing margin account opened by TAIFEX at the settlement bank by the clearing member based on the type of account, proprietary or client. (The clearing member may deposit an amount larger than the required amount in order to increase the size of the order.) Clearing members making cash (proprietary or client) clearing-margin deposits to TAIFEX’s clearing-margin account should, in accordance with TAIFEX’s announced rules, transfer the funds to the clearing-margin account opened by TAIFEX at the clearing bank. Clearing members should notify TAIFEX’s clearing department via digital means. In the event of an irregularity in computer operations, the member should complete a “Clearing Margin Deposit Notice,” fax the notice to TAIFEX, and notify TAIFEX by telephone. TAIFEX can be contacted for assistance in conducting this procedure via: Telephone: (02) 23695678 Ext. 8560-8564. Fax: (02) 23645460, 23645463.
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	Paragraph 2, Article 89 of Operating Rules of the Taiwan Futures Exchange Corporation Paragraph 4 and 16, Taiwan Futures Exchange Corporation Clearing Member Clearing and Settlement Operation Directions Chapter 12, Disposition of Defaults by Clearing Members, Operating Rules of the Taiwan Futures Exchange Corporation