Unless otherwise provided for in this Act, it is prohibited for anyone other than a futures commission merchant to engage in the business of futures trading.
A futures commission merchant must obtain permission and issuance of a license from the Competent Authority before it may commence business operation.
A foreign futures commission merchant must obtain recognition from the ROC government and obtain permission and issuance of a license from the Competent Authority before it may commence business operation.
Without having obtained permission and issuance of a license from the Competent Authority, it is prohibited to establish or operate a branch of a futures commission merchant.
The form of organization, establishment standards, and governing regulations of futures commission merchants shall be prescribed by the Competent Authority.

Unless approved by the Competent Authority, a futures commission merchant shall not concurrently operate any other business.
A futures commission merchant shall not be operated concurrently by any other business. However, this restriction does not apply to a securities firm that concurrently operates securities related futures business or has obtained approval from the competent authority for the relevant business. The standards for such concurrent operation shall be prescribed by the Competent Authority.
A firm operating a futures business in accordance with the preceding paragraph shall establish an independent department specifically in charge of the futures business. That department's operations and accounting must be independent.

The name of a futures commission merchant shall explicitly bear the word "futures." However, those who are futures commission merchants under the proviso in paragraph 2 of the preceding paragraph are exempted from this requirement.

The minimum requirement of equity capital or designated operating capital of a futures commission merchant shall be prescribed by the Competent Authority.

A futures commission merchant shall, prior to commencing its business, deposit an operation bond with a financial institution designated by the Competent Authority. The amount thereof shall be prescribed by the Competent Authority.
Creditors with debt claims arising from the futures business of a futures commission merchant shall have the right of priority to recover damages from the operation bond referred to in the preceding paragraph.
A futures commission merchant shall restore the bond to its original level if it falls below the amount prescribed under paragraph 1 as a result of satisfying liabilities under the preceding paragraph.

The rules governing the qualifications and administration of the responsible persons, associated persons, or other business facilitating agents of futures commission merchants shall be prescribed by the Competent Authority.

The provisions of Article 28 shall apply mutatis mutandis to the responsible persons or associated persons of futures commission merchants.

It is prohibited for any responsible person, associated person, or other employee of a futures commission merchant to do any of the following:
1. Divulge any information on orders or related matters entrusted by a futures trader or secret learned while performing duties.
2. Guarantee a futures trader a profit.
3. Agree with a futures trader to share profit or jointly bear loss.
4. Engage in trading for themself using the account or name of a futures trader.
5. Offer the use of one's own or any other person's name or account to a futures trader for use in futures trading.
6. Engage in exaggerated or biased promotion or disseminate false information.

When accepting any engagement to handle futures brokerage trading, a futures commission merchant shall assess the customer's capability to engage in futures trading. If the assessment of the customer's credit situation and financial strength shows that the customer is incapable of engaging in futures trading, the futures commission merchant shall refuse to accept the engagement unless appropriate collateral is provided by the customer.
When a futures commission merchant accepts an engagement to handle futures brokerage trading, it shall enter into a brokerage contract with the futures trader at the time of opening the trading account. The contents of such contract shall be prescribed by the Competent Authority.

When a futures commission merchant accepts to open an account for a futures trader, the account opening shall be handled by a qualified associated person. Prior to the account opening, the futures commission merchant shall advise the trader of the nature of various kinds of futures, the terms of trading, and the potential risks involved and shall deliver a risk disclosure statement to the futures trader.
The content and the format of the risk disclosure statement referred to in the preceding paragraph shall be prescribed by the Competent Authority.

A futures commission merchant shall not employ anyone who is not a qualified associated person to accept orders from futures traders and engage in futures trading.
The minimum required number of associated persons of a futures commission merchant and the required content of the futures trading order form shall be prescribed by the Competent Authority.

A futures commission merchant engaged in handling futures brokerage trading shall collect margins or premiums from the futures traders. For each customer the merchant shall keep a detailed account statement specifying the balance as calculated on a daily basis.

A futures commission merchant engaged in handling futures brokerage trading shall prepare and deliver a trade report to the futures trader after the execution of a futures trade, and at the end of each month it shall further prepare and deliver a reconciliation statement to each futures trader.
The contents of the trade report and reconciliation statement under the preceding paragraph shall be prescribed by the Competent Authority.

A futures commission merchant, when concurrently engaging in proprietary and brokerage businesses, shall, for each trade, distinguish in writing whether it is a proprietary or brokerage trade.

A futures commission merchant shall open an exclusive customer margin account in a banking institution designated by the Competent Authority and shall deposit its futures customers' margins or premiums into such exclusive account. The account shall be kept separate from the futures commission merchant's own assets.
It is prohibited for any creditor of a futures commission merchant or designated institution referred to in the preceding paragraph to claim for attachment or exercise any other rights against the segregated customer margin account unless otherwise provided for in this Act.

A futures commission merchant shall not withdraw any funds from the segregated customer margin account unless one of the following situations occurs:
1. Instruction from the futures trader to deliver the excess margins/premiums.
2. Payment for the futures trader of the margins/premiums due or settlement balance.
3. Payment for the futures trader of brokerage commissions, interest, or other transactional fees payable to the futures broker.
4. Other items approved by the Competent Authority.

When the owners' equity of a futures commission merchant is lower than the designated percentage of the minimum paid-in capital, or its adjusted net capital is lower than the designated ratio of the total customer margin required for the open positions of futures traders, the futures commission merchant shall immediately report the situation to the Competent Authority. The Competent Authority shall order such futures commission merchant to correct the situation within a limited period. If the futures commission merchant fails to make the corrections within the period, the Competent Authority may, depending on the severity of the case, restrict a part of its business or withdraw its permission.
The designated percentage, the calculation methodology for the adjusted net capital, the net capital ratio, and the relevant registration and time period for correction referred to in the preceding paragraph shall be prescribed by the Competent Authority.

A futures commission merchant shall not accept a discretionary authorization to decide the category, quantity, or price of futures trades on behalf of the futures trader. Nonetheless, if done in compliance with the provisions set out by the Competent Authority, this restriction shall not apply.
A futures commission merchant shall not engage in any unnecessary trade on behalf of a futures trader. The same shall apply to futures commission merchants with discretionary authorization under the preceding paragraph.

A futures commission merchant shall not do any of the following:
1. Trade in non-compliance with the order instructions or conditions of the futures trader.
2. Conduct any futures trade on behalf of a futures trader without the authorization of the futures trader.

In the event of a futures commission merchant's bankruptcy, dissolution, or suspension of business operations, or circumstances under which laws or regulations require suspension of the acceptance of orders from futures traders, the Competent authority may order it to transfer the relevant accounts of its futures traders to another futures commission merchant with which it has entered into a succession contract unless the futures commission merchant at issue is a clearing member, in which case the provisions of Article 54 shall govern.
A futures commission merchant, unless with good cause approved by the Competent Authority, shall, within two business days from receiving the transfer order from the Competent Authority, transfer the balance of the segregated customer margin account and itemized trading statements of the futures traders to the other futures commission merchant as referred to in the preceding paragraph. Any costs arising from the transfer shall be borne by the transferring futures commission merchant.
A futures commission merchant shall, within two months after the commencement of its business operation, register with the Competent Authority for its recordation a photocopy of the succession agreement under which another futures commission merchant agrees to assume the relevant accounts of futures traders upon the occurrence of the events referred to in paragraph 1.

If the Competent Authority, in accordance with this Act, withdraw a futures commission merchant's business permission or orders it to suspend operations, it shall wind up and liquidate all futures trading affairs entered into before such withdrawal or suspension.

A futures commission merchant whose business permission has been withdrawn shall still be deemed a futures commission merchant within the scope and for the purposes of winding up and liquidating its futures trading affairs. A futures commission merchant ordered to suspend operations shall be deemed not yet suspended from operation within the scope of winding up and liquidating its futures trading affairs.

In the event a futures commission merchant is dissolved or partially ceases to operate its business, its responsible person shall submit a report explaining the cause to the Competent Authority.
The provisions of the preceding two articles shall apply mutatis mutandis to the situation provided in the preceding paragraph.

Article 17 and Article 18 shall apply mutatis mutandis to futures commission merchants.