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The Taiwan Futures Exchange determines a clearing member’s excess margin by deducting the margin required by the clearing member’s open positions from the balance the clearing member has on deposit in TAIFEX’s clearing margin account.

Example: On June 11, Member A’s balance in TAIFEX’s clearing margin account was NT$30 million. On that day, Clearing Member A’s positions required margin of NT$18 million. Therefore, Clearing Member A had excess margin in the amount of NT$12 million.

Article 86, Paragraph 2 of TAIFEX’s Operating Rules states that clearing members may not apply to withdraw an amount greater than their excess margin from the balance they have on deposit in TAIFEX’s clearing margin account. Applications to withdraw excess margin will affect the clearing member’s margin balance on the following business day.

Example: On April 1, Clearing Member A had NT$12 million of excess margin in TAIFEX’s clearing margin account, and its withdrawal application was therefore capped at this amount. Clearing Member A applied to withdraw the NT$12 million on April 1. As a result, at market open on April 2 Clearing Member A no longer had any excess margin and was therefore not permitted to accept any new orders.

Pursuant to Item 3 of the “Key Points on Clearing Members’ Handling of Clearing and Settlement Operations,” applications for the withdrawal of excess margin should be made as follows:

The clearing member should complete the application,by electronic or by faxing it to TAIFEX during operating hours, and call for confirmation.

TAIFEX’s contact numbers for this process are:
Telephone: (02) 23695678 Ext. 8560-8564
Fax: (02) 23645460 or (02) 23645463

• The original of a “Same-day Clearing Margin Withdrawal Application” should be delivered to TAIFEX before 5 p.m. on the date of the application; the original of a “Next-day Clearing Margin Withdrawal Application” should be delivered to TAIFEX in the next business day during the regular trading session prior to market closed.
• Clearing margin withdrawal applications should include the clearing member’s corporate name, its member code, the type of account (proprietary or client), the clearing bank account number, and the withdrawal amount.

Pursuant to Item 3, Paragraph 1 of the “Key Points on Clearing Members’ Handling of Clearing and Settlement Operations,” the hours of operation for applications to withdraw clearing margin are from 8:45 a.m. to 4:30 p.m.

TAIFEX reviews Clearing Member Same-day Clearing Margin Withdrawal Applications in batches at 9 a.m., 11 a.m., 2 p.m., and 2:45 p.m., and Clearing Member Next-day Clearing Margin Withdrawal Applications at 4:30 p.m., based on the time at which applications are received. In the event that a clearing member’s withdrawal application is for an amount greater than the clearing member’s excess margin, TAIFEX will deem the application invalid and notify the clearing member by telephone.

When a clearing member’s same-day clearing margin withdrawal application is found to be without error, TAIFEX will notify the clearing bank prior to 10 a.m., 12 p.m., 3 p.m. or 3:45 p.m. to transfer the withdrawal amount stated on the clearing member’s application from the clearing member’s balance in TAIFEX’s clearing margin account to the clearing member’s own clearing margin account.

When a clearing member’s next-day clearing margin withdrawal application is found to be without error, TAIFEX will notify the clearing bank prior to 9 a.m. of the following business day to transfer the withdrawal amount given on the clearing member’s application into the clearing member’s own margin account.

Legal basis:
Article 86, Paragraph 1 of the Operating Rules of the Taiwan Futures Exchange Corporation
Item 3 of the Key Points on Taiwan Futures Exchange Corporation Clearing Members’ Handling of Clearing and Settlement Operations