- What qualification requirements must be met by a party seeking to establish a futures commission merchant (FCM)?
- How long does the FCM application process take?
- What is the minimum number of persons that must be hired by an FCM?
- How much allocated operating capital must a concurrently operated futures brokerage have to trade in gold futures?
- How to get the application for Altering FCM's Capitalization?
- What are the qualification requirements to become a TAIFEX member?
- If an FCM's computer system goes down, is it allowed to provisionally report its daily net capital by fax?
- How is the term "internal personnel" defined at firms run exclusively as futures dealers, at firms run concurrently as futures dealers, and at futures introducing brokers?
- Can premises and facilities be shared for the conduct of securities dealing and futures dealing?
- How are TAIFEX shares purchased? What is the cost?
- What qualification requirements
must be met by a party seeking to establish a futures commission
merchant (FCM)?
- The "standards governing the establishment of futures commission merchants" set out the provisions governing the qualifications of those seeking to operate either exclusively or concurrently as an FCM.
- Minimum authorized capital or allocated operating
capital:
（1） Futures brokerage market: NT$200 million (brokers) or NT$400 million (dealers).
（2） Futures proprietary market: NT$50 million, NT$80 million, NT$100 million, or NT$200 million (brokers; amount depends on the range of products handled) or NT$400 million (dealers). - Article 7 of the TAIFEX Operating Rules requires that FCMs be TAIFEX shareholders, but there are no requirements regarding the number of shares that must be held.
- How long does the FCM
application process take?
The process takes about five or six months from the time the application is submitted to the relevant authority until the commencement of business, if everything goes as intended.
- What is the minimum number of
persons that must be hired by an FCM?
A party that runs either a futures brokerage or futures dealer is required to employ at least three qualified associated persons. A party that runs both a brokerage and a dealer must employ at least five qualified associated persons. In addition, it is also necessary to employ an in-charge accountant(qualified associated persons required), cashiers, and information personnel.
- How much allocated operating
capital must a concurrently operated futures brokerage have to
trade in gold futures?
Under current law, a party that has applied to concurrently operate a futures brokerage is allowed to trade in gold futures if its allocated operating capital is not less than NT$100 million.
- How to get the application for
Altering FCM's Capitalization?
Information is available at www.taifex.com.tw. (Click on: Member Information > Forms of Trading and Clearing Application > Forms of Managing FCMs)
- What are the qualification
requirements to become a TAIFEX member?
Information is available at www.taifex.com.tw. (Click on: Member Information>Requirements for Participation)
- If an FCM's computer system goes
down, is it allowed to provisionally report its daily net capital
by fax?
Yes, an FCM may first report the information by fax and then supplement later with by submitting a report online.
- How is the term "internal
personnel" defined at firms run exclusively as futures dealers,
at firms run concurrently as futures dealers, and at futures
introducing brokers?
- At futures introducing brokers, "internal personnel" means: (1) The person responsible, directors, and supervisors of a futures introducing broker (in the case of a juristic-person director or supervisor, the term refers only to the director or supervisor itself, or to its representative). (2) Personnel in a department dedicated to the handling of futures introducing brokerage business, and the supervisor responsible for overseeing that department.
- At FCMs, "internal personnel" means: (1) The person responsible, directors, and supervisors of a firm operated either exclusively or concurrently as an FCM (in the case of a juristic-person director or supervisor, the term refers only to the director or supervisor itself, or to its representative). (2) Associated persons and other personnel of a firm operated exclusively as an FCM. (3) In a firm operated concurrently as an FCM, personnel in the futures department, and the supervisor responsible for overseeing that department.
- Can premises and facilities be
shared for the conduct of securities dealing and futures dealing?
Point 5, paragraph 2 of the "chinese national futures association guidelines for the business premises and facilities of members" provides as follows: "If a securities firm or financial institution concurrently conducts futures dealer business, facilities may be shared for the concurrent operation of securities dealing and futures dealing."
- How are TAIFEX shares
purchased? What is the cost?
- TAIFEX is not listed on the stock exchange, so our shares cannot be purchased on the open market. The easiest way is to buy shares from FCMs with which you expect to do business.
- The book value per share for TAIFEX stock and recent transaction prices will give some idea of the approximate cost, but the actual trading price must still be agreed upon by the two parties.
