A securities enterprise that intends to act as a participating dealer for a domestically issued foreign currency denominated ETF to process (on a brokerage basis) or engage in (on a proprietary basis) purchase or redemption of foreign currency denominated ETFs shall apply to the Bank for approval or report to the Bank for record by submitting the following documents before commencement：
1. When acting as a participating dealer for a domestically issued foreign currency denominated ETF for the first time, the securities enterprise shall apply to the Bank for approval by submitting documents provided in Article 7 herein, and in addition, the following documents：
(1) Qualification approval letter from TWSE;
(2) Participation contract of the foreign currency denominated ETF; and
(3) A business plan (including the business profile, foreign exchange settlement matters involved in the planning for the foreign currency funds, and hedging arrangements).
2. When the securities enterprise subsequently intends to act as a participating dealer for another domestically issued foreign currency denominated ETF, it shall report to the Bank for record before commencement by submitting the documents provided in Items (1) and (2) of the preceding paragraph.

For a securities enterprise to act as a liquidity provider for a domestically issued foreign currency denominated ETF, the provisions of the preceding article shall apply mutatis mutandis to the procedure and documentation required for applying for the business. Notwithstanding the foregoing, the documents provided in Item (2), Subparagraph 1 of the preceding article shall be substituted with the liquidity contract on the domestically issued foreign currency denominated ETF.

Securities enterprises that have obtained the qualification to engage in proprietary trading of securities or to accept orders to trade securities on the centralized securities exchange market may also engage in proprietary or broker trading of foreign currency denominated ETFs without making an application.
When engaging in the business mentioned in the preceding paragraph, a securities enterprise shall comply with the following rules:
1.Receipt/payment between the securities enterprise and investors regarding the purchase and sale of a foreign currency denominated ETF shall be made in the denominated currency of that ETF.
2.A foreign currency denominated ETF may not be an underlying product in margin purchase and short sales, securities borrowing and lending, borrowing or lending money in connection with securities business, or borrowing or lending money without specific purposes by securities firms, and other relevant businesses.
3.NTD denominated ETF positions acquired through margin purchase or borrowing may not be converted into foreign currency denominated ETFs.
4.When the trading order of an investor to buy a foreign currency denominated ETF fails to be executed and if the securities broker has collected payments from the investor in advance, the securities broker shall return the advance payments no later than the next business day following the trading day.
5.When an investor’s amount receivable is greater than the amount payable on the same settlement day, the securities enterprise may sign an intra-day overdraft contract with the settlement bank to facilitate timely settlement with the investor.
6.In the case of out-trade, an investor default on a sale, or an overseas Chinese or foreign investor requesting a delay in settlement, the securities enterprise may apply to TWSE for borrowing securities to cover the settlement.