(Market Surveillance Regulations)
The Competent Authority shall establish market surveillance regulations to protect public interest and maintain market order.

(Causes for Partial or Complete Suspension of Futures Trading)
In the event of any of the following circumstances in the futures market or a futures trading thereof, the Competent Authority may issue orders to adjust the margin level, restrict trading volume or open positions of the transacting party or adopt any other necessary measures; where such circumstances are special, the Competent Authority may order the complete or partial suspension of futures trading:
1. where the futures market or futures trading has been or has the danger of being manipulated or monopolized;
2. where any measure taken by the Taiwan government or a foreign government is sufficient to affect the futures market, futures trading, or certain underlying assets for futures trading.
3. where the foreign or domestic market fluctuates substantially due to acts of god, war, civil commotion, or other force majeure events, which will severely impede the futures market, futures trading, or certain underlying assets for futures trading; or
4. other events which will severely affect the futures market order or harm the public interest.

(Financial Reports)
Futures exchanges, futures clearing houses, futures enterprises, and futures associations shall periodically prepare and file with the Competent Authority financial reports that have been audited and attested, or reviewed, by a certified public accountant, and shall preserve the trading and business records.
The rules regarding the preparation of the financial reports, registration procedures, particulars for public announcement, and record keeping referred to in the preceding Paragraph shall be prescribed by the Competent Authority.

(Establishment of Internal Control System)
Futures exchanges, futures clearing houses, and futures enterprises shall establish financial and operational internal control systems.
The Competent Authority may prescribe guidelines governing internal control systems of companies or institutions referred to in the preceding Paragraph.
Unless approved by the Competent Authority, a company or institution referred to in Paragraph 1 shall report an Internal Control Declaration to the Competent Authority within three months after the close of each accounting year.

(Related Parties)
In order to protect the public interest or maintain the market order, the Competent Authority may, from time to time, order a futures exchange, futures clearing house, futures enterprise, futures association or any related parties having financial or business intercourse with the parties above to furnish financial or business statements, or examine their business, assets, accounting books, documents or other related articles. In case there is substantial likelihood that there has been a violation of act or regulations, the Competent Authority may seal or take possession of the relevant documents.
The scope of the related parties referred to in the preceding Paragraph shall be prescribed by the Competent Authority.

(Audit by the Competent Authority)
In order to maintain the public interest and market order, in case there is the likelihood that this Act is likely to be violated, the Competent Authority may request the institution, organization, or individual related to the futures trading to submit relevant books and documents, or to call those related persons to explain their transactions. The guidelines for the above shall be prescribed by the Competent Authority.
The persons being requested to appear under the preceding Paragraph may retain attorneys-at-law, certified public accountants, or any other persons who under the law can legally represent and defend them.

(Sanctions for Violations)
In case any futures exchange, futures clearing house, or futures enterprise acts in violation of this Act or any regulation issued pursuant to this Act, in addition to being subject to be punished in accordance with the provisions set forth under this Act, the Competent Authority may, depending upon the severity of the violation, additionally issue a reprimand or impose the following sanctions and, in addition thereto, order such violator to correct its conduct within a limited period of time:
1. warning;
2. remove the responsible persons or other related persons;
3. issue order to suspend the business in part or in whole for no more than six months;
4. void or revoke the business license; or
5. other necessary measures.

(Sanctions for Violations)
The responsible persons or employees of a futures exchange, futures clearing house, or futures enterprise violating this Act or any regulation issued pursuant to this Act shall be punished, in accordance with this Act and in addition thereto, the Competent Authority, depending on the seriousness of the violation, may order, for no more than six months, the suspension of his/her capacity to execute transactions or to remove him/her from the position held; In addition, the Competent Authority may impose upon the futures exchange, futures clearing house, or futures enterprise sanctions in accordance with the preceding Article.
After any of the persons referred to in the preceding Paragraph has been removed from his/her office, the futures exchange, futures clearing house, or futures enterprise shall report the same to the Competent Authority.

(Competent Authority Order to Amend the Articles of Association or Related Rules)
In order to protect the public interest, the Competent Authority may issue an order notifying a futures exchange, futures clearing house, or futures association to amend its Articles of Association, operating rules, standards of mandate contract, or any other rules, or suspending, restricting, amending, or voiding any resolution or disposition made by such exchange, clearing house, or association.

(Prescription of Regulations Governing Supervision)
The Competent Authority may appoint persons to a futures exchange and/or futures clearing house for supervisory purposes. The regulations governing supervision shall be prescribed by the Competent Authority.