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Chapter Law Content

Title: Futures Trading Act CH
Category: Financial Supervisory Commission(金融監督管理委員會)
Chapter VI Supervision and Administration
Section II Administration
Article 104
The Competent Authority may restrict the futures trading volumes or open positions of futures traders.
A futures trader shall report its futures trading volumes and open positions. The scope, content, and procedures for such reporting shall be prescribed by the Competent Authority.
Article 105
It is prohibited for anyone to engage a person to conduct futures trading who has not been approved by the Competent Authority to operate a futures business.
Article 106
With regard to futures trading, it is prohibited to do any of the following with the intent to manipulate the price of futures:
1. Act independently or conspire with others to continuously inflate, maintain, or deflate the trading price of futures or related spot commodities.
2. Act independently or conspire with others to increase, maintain, or decrease positions in futures or the supply or demand of related spot commodities.
3. Act independently or conspire with others to disseminate or spread false information.
4. Any manipulative act that directly or indirectly influences the trading prices of futures or related spot commodities.
Article 107
The following persons directly or indirectly having access to information sufficient to materially affect futures trading prices shall not purchase or sell for their own account or in the name of another, or have others engage in trading of, any futures or related spot commodities that are related to such information prior to the public disclosure of the information or within 18 hours after its public disclosure:
1. Directors, supervisors, managerial officers, employees, or mandataries of a futures exchange, futures clearing house, futures enterprise, futures association, securities exchange, over-the-counter securities exchange, or securities dealers association.
2. Public officials, employees, or mandataries of the Competent Authority or the competent authorities of other related businesses.
3. Any person who has learned the information because of an occupational or controlling relationship.
4. Directors, supervisors, managerial officers, employees, mandataries, or shareholders with a shareholding of 10 percent or more, of the issuer of the underlying securities of single stock futures contracts or single stock option contracts.
5. Directors, supervisors, managerial officers, or employees of the mandataries referred to in subparagraphs 1, 2, and 4.
6. A person who, though no longer among those listed in the preceding five subparagraphs, has only lost such status within the last six months.
7. Any person who has been informed of the information by any of the persons listed in the preceding six subparagraphs.
The preceding paragraph shall apply mutatis mutandis to the representatives of the directors and supervisors.
Article 108
Any person involved in futures trading shall not engage in bucketing, misrepresentation, fraud, concealment, or other conduct sufficient to mislead futures traders or third parties.
The term "bucketing" in the preceding paragraph means any of the following:
1. Off-market offsetting.
2. Cross-trading.
3. Taking the opposite side of a customer's order.
4. Accommodation trading.