Upon FSC approval for operation of futures introducing broker business, a securities firm shall, after carrying out amendment of its business registration, open a special account with the financial institution designated by the FSC for depositing the operation bond. This rule shall apply to its branch office upon FSC approval for operation of futures introducing broker business.
The operation bond to be deposited by a futures introducing broker under the preceding paragraph shall be NT$10 million; the operation bond for each branch office is NT$5 million.
The financial institution referred to in paragraph 1 shall be a bank that is approved by the FSC to operate custodial business, and meets the conditions prescribed by the FSC.
When the futures introducing broker is a financial institution that concurrently operates futures brokerage business, its operation bond shall be deposited with another financial institution.
The operation bond referred to in paragraph 1 above shall be paid in cash or by government bond or financial bond.
The operation bond deposited by a securities firm operating futures introducing broker business shall not be separately deposited in different places, and the condition of reporting of loss or contract termination shall not be allowed for the operation bond. The deposited operation bond and certificate of depository thereof shall not be used as securities, and unless approval has been granted by the FSC, the deposited operation bond shall not be withdrawn or replaced.

A futures introducing broker shall, prior to the 10th day of each month, submit to the FSC, the futures exchange, or FSC-designated institution a monthly statement of business volume of the previous month.

A futures introducing broker shall enter into a mandate agreement with the mandating futures commission merchant, which shall contain the following particulars:
1. Names of the parties to the agreement;
2. Either party shall notify the other upon receiving the complaint of any futures traders;
3. Provisions on commission and other relevant fees;
4. Scope of agency business of the futures introducing broker and the procedures for its execution;
5. The scope of information and services to be provided by the parties to the agreement;
6. Neither party shall refuse the request of the other party for provision of necessary business and finance information;
7. Neither party to the agreement shall improperly use the information obtained from the other party;
8. When the futures introducing broker is unable to perform the business, the mandating futures commission merchant shall handle it directly;
9. The method to deal with the damage caused by reasons attributable to either party to the agreement;
10. The method to deal with the damage caused by reasons not attributable to either party to the agreement;
11. If the futures introducing broker is responsible for the damages caused to a futures trader or any third person by its willful act or negligence in performing the businesses under paragraph 1 of Article 3 herein, the mandating futures commission merchant shall be held jointly liable as if the damage is caused by its own willful act or negligence;
12. Settlement of trading disputes;
13. Change of provisions of agreement;
14. Rescission or termination of the agreement;
15. Effective date of Agreement;
16. Other necessary statements in connection with the parties' rights and obligations; and
17. Other matters required to be stated by the FSC.
The mandating futures commission merchant shall not enter into an agreement with the futures introducing broker to waive the responsibilities referred to in subparagraph 11 of the preceding paragraph in advance.
The change or rescission of the mandate agreement referred to in paragraph 1 above shall be reported to FSC for recordation within two days from and including the date of change or recession.

A mandating futures commission merchant shall not, by a mandate agreement or in any other manner, agree with a futures introducing broker to allow the futures introducing broker to execute any business on its behalf other than those stated under paragraph 1 of Article 3 herein.

A futures introducing broker shall not open an account with a futures commission merchant to engage in futures trading on account of its own interests; provided that this provision shall not apply if a securities firm has applied for concurrent operation of futures proprietary business pursuant to the relevant provisions of the Standards Governing the Establishment of Futures Commission Merchants.

A futures introducing broker shall promptly deliver the order of a futures trader to the mandating futures commission merchant for execution so as to protect the rights and interests of the futures trader.

A securities firm that operates futures introducing broker business, in addition to having such business conducted by a dedicated department and assigning dedicated personnel responsible for management, shall also have such business executed by registered, qualified agents.

A futures introducing broker shall keep at its business premises all the business-related certificates, vouchers, books of account, statements, records, contracts and relevant supporting documents for inspection by the FSC, the futures exchanges, or FSC-designated institution from time to time.
The period for keeping the certificates, vouchers, books of account, statements, records, contracts, and relevant supporting documents referred to in the preceding paragraph shall be in line with the Commercial Accounting Act and relevant laws and regulations.

FSC, futures exchange, or FSC-designated institution may examine the business, finance, and other necessary matters of a futures introducing broker.
A futures introducing broker shall provide explanations and relevant documents in connection with the examination referred to in the preceding paragraph.

The term "associated person(s)" referred to in these Regulations shall mean the person(s) engaging in the following businesses on behalf of the futures introducing broker:
1. the businesses under paragraph 1 of Article 3 herein;
2. internal auditing of a futures introducing broker;
3. self auditing of a futures introducing broker.
A person dealing with the businesses under subparagraph 1 of the preceding paragraph shall not concurrently handle the businesses under subparagraph 2, and vice versa.
The associated person(s) referred to in paragraph 1 above shall be qualified futures associated person(s).

The associated persons of a futures introducing broker who have the qualifications of both securities and futures associated persons may, while handling business under paragraph 1 of Article 3, internal auditing, or self auditing, concurrently handle business of the same nature in the fields of securities or futures.

The registration and change of the responsible persons, managerial officers, and associated persons of a futures introducing broker shall be recorded with the Futures Association or FSC-designated institution through the futures introducing broker. An associated person shall not perform his/her duties without registration.
In any of the following events, the registration referred to in the preceding paragraph shall not be allowed; if any registration has been made, such registration shall be voided:
1. occurrence of any of the conditions under Article 28 of the Act;
2. failure to meet the qualifications/conditions under paragraph 3 of Article 26 herein;
3. violation of Article 29 herein;
4. failure to comply with regulations to successfully complete the orientation or on-job training;
5. there being facts showing that the person concerned engages or is involved in other dishonest or improper activities, which demonstrates that he/she is not suitable to act as the responsible person, managerial officer, or associated person.
In the event that there is any change of its responsible person, managerial officer, and/or associated person, a futures introducing broker shall report to the Futures Association or FSC-designated institution within five (5) days of such change. The associated person concerned shall replace or surrender the work permit. Before the registration of the change is completed, the future introducing broker concerned shall not be released from the liability for the act of such person.

The responsible person, manager, or associated person of a futures introducing broker engaging in or directly dealing with the duties referred to in paragraph 1 of Article 3 herein shall faithfully carry out duties in accordance with the principles of good faith and trustworthiness.
In addition to conduct prohibited under Article 16 of the Regulations Governing Responsible Persons and Associated Persons of Futures Commission Merchants, the futures introducing broker and associated persons under the preceding paragraph may not engage in the following conduct:
1. accept any funds from a futures trader;
2. fail to handle futures introducing broker business in compliance with the order placed by or conditions set by a futures trader;
3. accept any discretionary trading authorization of a futures trader;
4. disclose any information of a futures trader; or
5. engage in other acts in violation of laws and regulations governing futures trading or prohibited by the FSC.
Other employees that are not associated persons likewise are prohibited from violating the provisions of the preceding two paragraphs, and additionally are prohibited from carrying out, or acting as a deputy for, the duties of an associated person.

Responsible persons and employee of a futures introducing broker may open an account for trading with the mandating futures commission merchant only, and shall not open the said account in the name of another person.
If an account to be opened for a person referred to in the preceding paragraph is to be opened through a futures introducing broker engaged by the future commission merchant, it shall be done by the futures introducing broker to which the person belongs.
Account opening, handling of orders, and related matters, for persons referred to in paragraph 1 shall be handled by the futures introducing broker and the mandating futures commission merchant in accordance with the regulations of the FSC or its designated institution.

Paragraph 1 of Article 2, Article 4, Article 5, Article 5-1, Articles 9 through 15, and Article 18 of the Regulations Governing Responsible Persons and Associated Persons of Futures Commission Merchants shall mutatis mutandis apply to futures introducing brokers.