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Chapter Law Content

Title: Futures Trading Act CH
Category: Financial Supervisory Commission(金融監督管理委員會)
Chapter VI Supervision and Administration
Section II Administration
Article 104
(Reporting of Futures Trading Volumes and Open Positions)
The Competent Authority may restrict the futures trading volumes and open positions of futures traders.
A futures trader shall report its futures trading volumes and open positions. The scope, content, and procedures for such reporting shall be prescribed by the Competent Authority.
Article 105
(Prohibition Against Mandating Unauthorized Persons to Engage in Futures Trading)
No person may mandate a futures enterprise which has not been approved by the Competent Authority to engage in futures trading.
Article 106
(Prohibited Conduct)
With regard to futures trading, no person shall, with an intent to manipulate the price of futures, engage in any one of the following acts:
1. acting independently or conspiring with others to continuously inflate, maintain, or deflate the prices of a certain futures contract, or its related spot commodities;
2. acting independently or conspiring with others to increase, maintain, or decrease the open positions of a certain futures contract or the supply or demand of its related spot commodities;
3. acting independently or conspiring with others to disseminate or spread false information; or
4. directly or indirectly engaging in manipulative acts to influence the prices of a certain futures contract or its related spot commodities.
Article 107
(Persons Who May Not Buy or Sell Futures for Their Own Account or in the Name of Another, or Cause Another to Engage in Trading of Futures or Spot Commodities Related to Material Information)
The following persons directly or indirectly having access to material information which may materially affect the prices of a certain futures contract shall not purchase or sell for his own account or in the name of another, or have others trade on futures or its related spot commodities which are related to such information prior to the public disclosure of the information or within 18 hours after its public disclosure:
1. directors, supervisors, managers, employees, or mandataries of a futures exchange, futures clearing house, futures enterprise, futures association, Stock Exchange, over-the-counter securities exchange, or a securities dealers association;
2. public officials, employees or mandataries of the Competent Authority or the competent authorities of other related businesses;
3. any person who has learned the information by reason of occupational or controlling relationship;
4. directors, supervisors, managers, employees, or major shareholders with shareholding of 10 percent or more, of the issuer of the underlying securities of single stock futures contracts or equity option contracts;
5. directors, supervisors, managers or employees of the mandataries referred to in subparagraphs 1, 2, and 4; or
6. a person who, though no longer among those listed in the preceding five subparagraphs, has only lost such status within the last six months; or
7. any person who has been informed of the information by the persons referred to in the preceding six subparagraphs.
The preceding Paragraph shall apply mutatis mutandis to the representatives of the directors and supervisors.
Article 108
(Prohibition of Bucketing)
Any person involved in futures trading shall not engage in bucketing, misrepresentation, fraud, deceit, or other conducts which will mislead the futures traders or other third parties.
The term "bucketing" referred to in the preceding Paragraph shall mean:
1. off market offsetting;
2. cross-trading;
3. taking the other side of a customer's order;
4. accommodation trading.