These Regulations are prescribed pursuant to Paragraph 2, Article 35 of “the Central Bank of the Republic of China (Taiwan) Act.”

The provisions of these Regulations shall govern the foreign exchange business of securities enterprises. Matters not provided herein shall be subject to provisions under other relevant laws and regulations.

The term "securities enterprises" as used in these Regulations shall mean securities firms and financial institutions, concurrently engaging in securities business, approved to establish and issued a license by the Financial Supervisory Commission (hereinafter referred to as “FSC") in accordance with the “Securities & Exchange Act” and the “Standards Governing the Establishment of Securities Firms”.
The term “domestic securities firm approved to conduct spot foreign exchange transaction business” (hereinafter referred to as “DSF") as used in these Regulations shall mean a securities firm approved by the Central Bank of the Republic of China (Taiwan) (hereinafter referred to as “the Bank”) to conduct businesses set out in Subparagraph 2, Paragraph 1 of Article 4 herein.
The provisions of Article 4 of the Regulations Governing Foreign Exchange Business of Banking Enterprises shall apply mutatis mutandis to the definitions of the terms "foreign exchange derivatives”, “complex high-risk foreign exchange derivatives”, “structured product”, “professional customer”, “professional institutional investor” and “high net worth corporate investor” used in these Regulations.

The term "foreign exchange business" as used in these Regulations comprises the following categories:
1. Securities related businesses involving foreign exchange：
(1) Foreign currency denominated international bonds business;
(2) Proprietary trading of foreign securities business;
(3) Issuance of call (put) warrants business involving foreign exchange ;
(4) Business of accepting orders to trade foreign securities ;
(5) Business of trading foreign bonds as an agent;
(6) Business of acting as a participating dealer of an offshore exchange traded fund;
(7) Business involving domestically issued foreign currency denominated exchange traded funds;
(8) Business of acting as the master agent of an offshore fund institution;
(9) Business of acting as a local mandated agent of an offshore fund institution ; and
(10)Business of conducting wealth management involving foreign exchange by means of trust.
2. Spot foreign exchange transactions in connection with securities businesses.
3. Foreign exchange derivatives business.
4. Other foreign exchange businesses related to the securities business approved by the Bank.
When any of the businesses mentioned in the preceding paragraph involves foreign securities or offshore funds, such foreign securities or offshore funds shall not be denominated in New Taiwan dollar (NTD) and shall not involve or be linked to NTD exchange rate or NTD interest rate indices.

Unless otherwise provided by other laws or the competent authorities, a securities enterprise shall maintain the confidentiality of customer information gathered from foreign exchange business and shall adopt proper security measures in compliance with Paragraph 1, Article 27 of the “Personal Information Protection Act” if personal information is involved.