Chapter 3 Detailed Provisions – Operation and Management of Foreign Exchange Business
Section 1 Securities Related Business Involving Foreign Exchange
Subsection 3 Offshore or Foreign Currency Warrant Business
Article 25
The business scope of call (put) warrant issued by securities enterprises involving foreign exchange (hereinafter referred to as “offshore or foreign currency warrant business”) includes the following:
1.For domestic call (put) warrants involving foreign securities or indices of foreign securities markets, the scope of the underlying shall conform to relevant regulations stipulated by the FSC.
2.For offshore call (put) warrants involving domestic securities or indices, the scope of the underlying shall be limited to domestic stocks or baskets of stocks, domestic exchange traded securities investment trust funds, offshore ETFs, and Taiwan depositary receipts.
Article 26
A securities enterprise that intends to engage in offshore or foreign currency warrant business shall apply to the Bank for approval by submitting documents provided in Article 7 herein, and in addition, documents specified below:
1.Qualification certificates issued by the FSC and the competent authority in the place where the offshore warrants will trade; and
2.Business plan (including product profiles, operational guidelines and risk management).