|Gross margining method||TAIFEX calculates and collects clearing margins from clearing members using the gross margining method. According to this method, the positions under each clearing member’s account will be margined on a gross basis. For instance, Clearing Member A (an individual clearing member) holds two client accounts, and one of the accounts holds a 3-lot long position and the other account holds a 2-lot short position. Clearing Member A will therefore be margined on a 5-lot gross position by TAIFEX.|
|Margin requirement||The margin requirement shall be calculated and collected for a clearing member’s margined positions on a daily basis, using the gross margining method described above. For instance, if the clearing margin level for one contract is NT$220,000, the margin requirement for Clearing Member A with a 5-lot position as stated in the prior example, is NT$ 1.1 million for the day.|
|Types of gains (losses)||TAIFEX calculates three types of gains (losses) on a daily basis for its clearing members. These are gains (losses) on daily transactions, gains (losses) on open positions, and gains (losses) on expired positions. These three types of gains (losses) are included in the calculation of the principal's margin account balance.
(For options contracts, only gains (losses) on expired positions are calculated.)
|Gains (losses) on daily transactions||The gains (losses) on a clearing member’s realized trades are calculated daily. The balance is derived from the price difference between the transactions and the daily settlement prices.
|Gains (losses) on open positions||The gains (losses) of the balance of positions held by a clearing member will be calculated on a gross basis, with the amount being derived from the price difference between the daily settlement price and the settlement price on the previous trading day.
|Gains (losses) on expired positions||
|Daily clearing margin balance||The TAIFEX clearing system calculates each clearing member’s margin balance after trading hours each day based on each clearing member’s daily deposit or withdrawal of cash or non-cash margin, daily transaction gains (losses), gains (losses) on open positions, and gains (losses) on expired positions.|