These Regulations are prescribed pursuant to Paragraph 2 of Article 45, Article 53, Article 55 and Article 97 of the Futures Trading Act (hereinafter "the Act").

The businesses of a futures clearing house are clearance and settlement for futures trading and to provide guarantee for performance of the futures contracts.

For the purpose of these Regulations, "Responsible Persons" shall mean directors, supervisors, managerial officers of a futures clearing house and any other persons who shall be responsible in accordance with laws.
For the purpose of these Regulations, "Managerial Officer" shall mean the president, senior vice president, vice president, and the head of each business department and their deputies.

For the purpose of these Regulations, "Associated Persons" shall mean personnel of a futures clearing house who are engaging in the following businesses:
1. conducting audit on the finance and business of the clearing members or futures commission merchants;
2. surveillance, clearance, settlement, the administration of the margin and premium, and risk control of futures trading;
3. computer system operation of the futures clearance and settlement and information management;
4. internal audit of the futures clearing house.
In case where the clearing business is concurrently conducted by a futures exchange or by other institutions, the Associated Persons as referred to in the proceeding Paragraph shall not concurrently perform both duties or concurrently perform the duty of other departments.

A futures clearing house shall prescribe the qualifications of each type of clearing members, and report such qualifications to the Financial Supervisory Commission (hereinafter referred to as "the FSC") for approval. The same procedure shall apply with amendments thereto.
The factors to be taken into account in drafting the qualifications as referred to in the proceeding Paragraph include capital, financial structure, credit record and other financial, and business condition. Its directors, supervisors, and managerial officers shall not fall into any one of the categories specified in Article 28 of the Act.

A futures clearing house shall submit the following documents to the FSC and obtain the approval before commencing any of its business:
1. a list of its clearing members (including name and type of the members) and the proof of satisfying the qualifications as referred to in the preceding Article;
2. the operation procedure of and contract between the futures clearing house and the financial and centralized custody institutions related to settlement, clearance, and transfer of monies/certificates;
3. proof evidencing the futures clearing house has contributed the compensation reserve fund in accordance with Article 15;
4. proof evidencing the clearing members have deposited the operation bond in accordance with Article 12 and deposited the settlement and clearing fund in accordance with the rules of the clearing house;
5. the operation procedure relating to the clearing and settlement operation and contracts between the clearing house, clearing members, and non-clearing members;
6. proof evidencing the computerized operation of clearance, settlement, and surveillance can be operated properly;
7. the standard, procedure of market surveillance and operation plan for handling unusual situation;
8. auditing plan regarding the finance, business, and internal audit of the clearing members and the internal audit of the clearing house (including normal and exceptional management);
9. handling procedure as referred to in Article 24;
10. clearing and settlement contract as referred to in Article 27;
11. other documents as required by the FSC.

In case of any one of the following events, a futures clearing house shall report to the FSC in advance for approval:
1. change of the name of the clearing house;
2. change of the amount of capital or designated operation fund;
3. change of business place;
4. engaging in other business or investing in other business;
5. acquiring all or major part of business or property of other clearing houses; or transfer all or major part of the business or property to others;
6. merger or dissolution;
7. Other matters which shall be reported to the FSC in advance for approval as required by the Act or other rules of the FSC.

In case of any one of the following events, a futures clearing house shall immediately report to the FSC for review and recordation:
1. the suspension, resumption, or cessation of business;
2. the execution, amendment, or termination of clearing and settlement contract with its clearing members;
3. change of Articles of Association or other bylaws;
4. entering into any cooperation agreement or memorandum with a foreign exchange, clearing house, self-regulatory organization or other institution;
5. other matters which shall be reported to the FSC for review and recordation under the Act and other rules of the FSC.

In case of any one of the following events, besides taking appropriate action immediately according to the circumstances of the matter, a futures clearing house shall also report to the FSC for recordation:
1. a temporary suspension of all or part of the clearance or settlement of the current trading, resulting from the incident caused by force majeure;
2. the breakdown or disruption of the clearing or settlement system or trading information transmission system;
3. where a clearing member delays depositing margin or the premium or defaults on the obligation to deposit the margin or pay the premium;
4. where a clearing member delays performing settlement when due or fails to perform the settlement;
5. where a Responsible Person or Associated Person of a futures clearing house becomes involved in litigation, receives a judgment in litigation, or becomes subject to compulsory execution as an obligor, as a result of or in connection with his performance of job duties, or has any other incident which would cause him to be discharged from the position under the Act.
6. Where any of its directors, supervisors, managerial officers, or associated persons falls within the categories specified in Article 28 of the Act;
7. punishment imposed on the clearing members;
8. matters which shall be reported to Competent Authority pursuant to Article 55 and Article 41 of the Act;
9. the surveillance and handling situation of futures trading;
10. any civil litigation, non-litigious matters, administrative measure, administrative litigation, arbitration, or settlement, that has substantial impact on its finance or business;
11. admission or withdrawal of clearing members;
12. the depository institution's name and the account number of the designated account for the clearing bond;
13. minutes of the Board of Directors' meetings;
14. the reviewing reports on the financial report of the clearing members;
15. auditing of the financial and business matters of the clearing members;
16. other matters which shall be reported to the FSC for recordation under the Act or rules of the FSC.
The above events specified in Items 1 to 4 of preceding Paragraph shall be reported to the FSC no latter than one day after the event occurred ; events specified in Item 5 to 10 shall be reported to the FSC within 5 days after it learns of the occurrence of such event or after the procedure for handling it is completed; the events specified in Items 10 to 15 shall be reported to the FSC monthly regarding the enforcement result.

A futures clearing house shall establish its auditing system and an independent auditing department.

A futures clearing house shall not engage in any one of the following acts:
1. issue bearer stock;
2. provide guarantee or endorsement of negotiable instruments which are not related to its clearing or settlement business, or provide property to others as collateral.
3. other acts as regulated by the FSC.