The Futures Trading Act (hereinafter referred to as "this Act") is enacted for the purpose of facilitating the sound development of the futures market and maintaining orderly futures trading.

The regulation of futures trading shall be governed by this Act. Matters not provided for in this Act shall be governed by the provisions of other relevant laws.

The term "futures trading" as used in this Act refers to trading in any of the following contracts, or any combination thereof, deriving from commodities, currencies, securities, interest rates, indices, or other interests, conducted pursuant to the regulations or practices set forth by domestic or foreign futures exchanges or other futures markets:
1. Futures contract: means a contract under which the parties agree to purchase or sell an agreed underlying interest at a specified future time under specified trading terms including specified price and quantity, or to offset the contract by settling the difference in price before or on the last trading day.
2. Option contract: means a contract under which the parties agree that the option buyer pays a premium to obtain a call option or put option right to purchase or sell an agreed underlying interest within a specified time period under specified trading terms including specified quantity and price, and the option seller has the obligation to perform under the contract terms when the buyer calls for exercise thereunder, or the parties consent to settle the price difference before or on the last trading day.
3. Futures option contract: means a contract under which the parties agree that the option buyer pays a premium to obtain a call option or put option right to purchase or sell an agreed underlying futures contract within a specified time period under specified trading terms including specified quantity and price, and the option seller has the obligation to perform under the option contract terms when the buyer calls for exercise thereunder, or the parties consent to settle the price difference before or on the last trading day.
4. Leverage contract: means a contract under which the parties agree that one party pays a certain percentage of a price or obtains a specific credit limit granted by the other party, and the parties, within a specified future time period, by an agreed method, settle the price difference or deliver the underlying interest.
5. Swap contract: means a contract under which the parties agree, within a specified future time period, by an agreed method, to exchange an agreed underlying interest or a cash flow arising therefrom.
6. Other types of contracts.
Based on policy considerations relating to finance, currency, foreign exchange, government bonds, etc., futures trading conducted outside futures exchanges may, as announced by the Competent Authority within its regulatory purview or by the Central Bank of the Republic of China (Taiwan) within its administrative purview, be exempted from the application of this Act. However, within the scope of futures trading for which central clearing is required by the provisions of the Competent Authority, central clearing shall be performed in accordance with this Act at a futures clearing house designated thereby.
If the scope of futures trading for which central clearing is required, as referred to in the preceding paragraph, involves foreign exchange, the Competent Authority shall consult with and obtain the consent of the Central Bank of the Republic of China (Taiwan) in advance.

The term "Competent Authority" as used in this Act refers to the Financial Supervisory Commission.

The futures trading that a futures commission merchant may accept orders to engage in shall be confined to the types and exchanges announced by the Competent Authority.

To facilitate the development of financial inclusion and financial technologies, applicants, not limited to futures enterprises, may apply to conduct innovative experimentation in futures business pursuant to the Financial Technology Development and Innovative Experimentation Act.
An innovative experiment under the preceding paragraph may be exempted from the application of the provisions of this Act within the period and scope approved by the Competent Authority.
The Competent Authority shall take into reference the results of implementation of the innovative experimentation under paragraph 1, and review the appropriateness of this Act and relevant financial laws and regulations in light thereof.

The Competent Authority may, with approval by the Executive Yuan, enter into cooperation agreements with foreign government agencies, institutions, or international organizations to facilitate matters such as information exchange, technical cooperation, and investigation assistance.
The Competent Authority may, with approval by the Executive Yuan, authorize other agencies, institutions, or associations to enter into the cooperation agreements as referred to in the preceding paragraph.
Unless it would jeopardize the national interest or the rights of the investing public, the Competent Authority may request the provision of necessary information and records from related regulatory authorities or financial institutions, and provide them to a requesting foreign government agency, institution, or international organization that has executed a cooperation agreement based on the principles of reciprocity and confidentiality.