A futures exchange shall be established for the purpose of promoting the public interest and preserving the fairness of futures market trading.
A futures exchange may be organized as either a membership organization or a company organization.

The establishment of a futures exchange shall require permission and issuance of a license from the Competent Authority.
The establishment standards and governing regulations under the preceding paragraph shall be prescribed by the Competent Authority.

The business of a futures exchange is to provide services for a centralized futures trading market. Unless otherwise approved by the Competent Authority, a futures exchange shall neither engage in other business nor invest in other enterprises.

A futures trading contract shall not be traded on the futures exchange without prior approval from the Competent Authority. Nonetheless, when the Competent Authority approves a currency futures trading contract involving currency exchange between New Taiwan Dollars and any foreign currency, the Competent Authority shall consult with and obtain the consent of the Central Bank of the Republic of China (Taiwan) in advance.
The Competent Authority shall grant or deny an application referred to in the preceding paragraph within six months unless extraordinary circumstances exist.

An approved futures trading contract may be withdrawn by the Competent Authority if any of the following events occurs:
1. The contract has lost its economic value.
2. The contract is not consistent with the public interest.
3. Upon application by the futures exchange.

Unless otherwise prescribed by this Act or other laws or otherwise approved by the Competent Authority, futures trading shall be conducted only on a futures exchange.

It is prohibited to operate a futures exchange or the business of a futures exchange except in accordance with this Act.
It is prohibited for anyone to provide any premises, facilities, or information for others to engage in unlawful business under the preceding paragraph.

A futures exchange shall deposit an operation bond with the National Treasury. The amount and the governing regulations of such bonds shall be prescribed by the Competent Authority.

The operating rules of a futures exchange shall contain the following particulars:
1. Use of the futures trading market.
2. Trading system.
3. Clearing and settlement system.
4. Methodology for calculation of margin and premium.
5. Administration of futures commission merchants.
6. Surveillance of the futures trading market.
7. Contingency plans.
8. Handling procedures and penalties for default.
9. Other matters as required by the Competent Authority.
The prescription and amendment of the provisions of the operating rules under the preceding paragraph shall be subject to final approval by the Competent Authority.

If a futures exchange, in the execution of market surveillance pursuant to subparagraph 6 of paragraph 1 of the preceding Article, detects that the criteria of a trading anomaly is met in any futures trade, it may publish the trading information. If there is any likelihood that such anomaly would materially affect market trading order, the following measures also may be taken with respect to that futures trade:
1. Adjustment of margin level or the time span for collection.
2. Restriction of brokerage trade volumes for all or certain futures commission merchants.
3. Restriction of trading volumes or open positions.
4. Suspension or termination of the futures trade.
5. Any other necessary measure for the maintenance of market order or for the protection of futures traders.

In any of the following events, the Competent Authority may withdraw the permission granted to a futures exchange:
1. The application for the establishment or the license contained any misrepresentation.
2. The futures exchange fails to commence business operations within three months after receiving its license or, after commencing business operations, suspends operation for a continuous period of three months or longer. This restriction will not apply, however, if the futures exchange, for good cause shown, applies for and obtains approval from the Competent Authority for an extension.

A futures exchange shall file with the Competent Authority for its approval and recordation upon commencing or suspending its business operation.

A futures exchange's directors and supervisors and representatives thereof, managerial officers, and employees are prohibited from divulging any confidential information relevant to futures trading acquired through the performance of their duties.

The rules regarding qualifications and personnel governance for the responsible persons and associated persons of a futures exchange shall be prescribed by the Competent Authority.