(Business License)
Unless otherwise provided for in the Act, only authorized futures commission merchants shall engage in the business of futures trading.
A futures commission merchant shall be authorized and obtain a business license issued by the Competent Authority prior to the commencement of its business operation.
Unless recognized by the ROC government and with business license approved and issued by the Competent Authority, a foreign futures commission merchant may not commence to operate its business.
Unless approved and issued a business license by the Competent Authority, no branch office of a futures commission merchant shall be established or commence to operate its business.
The rules regarding organization forms, establishment criteria, and the governing regulations of the futures commission merchants shall be prescribed by the Competent Authority.

(Concurrent Business Operations)
Unless approved by the Competent Authority, a futures commission merchant shall not be allowed to concurrently engage in other business.
Except for those securities firms concurrently engage in securities related futures business or those with approval from the related regulatory authorities, no futures commission merchant business shall be operated concurrently by any other company engaging in any other business. The criteria for the said securities firms shall be prescribed by the Competent Authority.
Firms engaging in futures business in accordance with the preceding Paragraph shall establish an independent department in charge of the futures business; the department's operation and accounting shall also be separated.

(Name)
The name of a futures commission merchant shall explicitly bear the word of "futures." These futures commission merchants referred to under the proviso in Paragraph 2 of Article 57 shall be exempted from this requirement.

(Equity Capital or Designated Operating Capital)
The minimum requirement of equity capital or designated operating capital of a futures commission merchant shall be prescribed by the Competent Authority.

(Operation Bond)
A futures commission merchant shall, prior to commencing its business, deposit an operation bond with a financial institution designated by the Competent Authority; amount of the said bond shall be prescribed by the Competent Authority.
Creditors with debt claims arising from the futures business of a futures commission merchant shall have the rights 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 such bond falls below the amount specified in Paragraph 1 hereof as a result of satisfying the liabilities described in the preceding Paragraph.

(Responsible Persons, Associated Persons, or Other Business Facilitating Agents)
The rules governing the qualification and administration of the responsible persons, associated persons, or other business facilitating agents shall be prescribed by the Competent Authority.

(Provisions Applied Mutatis Mutandis Regarding Causes for Discharge)
The provision of Article 28 shall apply mutatis mutandis to the responsible persons or associated persons of futures commission merchants.

(Conduct Prohibited by FCM Personnel)
No responsible persons, associated persons or any other employees of a futures commission merchant may in any way:
1. divulge any information regarding matters mandated by his/her traders or any secrets with regard to all matters coming to his/her knowledge in the course of performing his/her duties;
2. guarantee a futures trader a profit;
3. make a commitment to a futures trader to share profit or loss;
4. use the account or name of a futures trader to engage in proprietary trading;
5. offer the use of the name or account of his/her own or of any other person to a futures trader for futures trading; or
6. make exaggerated or biased advertisement or disseminate false information.

(Signing of a Brokerage Contract)
A futures commission merchant shall, when accepting a futures trading mandate, assess the customer's capability of making futures trading. In case the assessment of the customer's credit situation and financial strength shows that he/she is incapable of engaging in futures trading, the futures commission merchant shall refuse to accept the mandate, unless an appropriate collateral has been provided by the said customer.
A futures commission merchant, for the purpose of accepting futures trading mandates, shall enter into a mandate contract with the futures trader at the time of opening of the trading account. The contents of such a contract shall be prescribed by the Competent Authority.

(Risk Disclosure Statement)
Only qualified associated persons shall accept a new account opening by futures traders on behalf of its futures commission merchant. 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 submit 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.

(Employment of Associated Persons)
A futures commission merchant shall not employ any non-qualified associated person to accept trading mandates from futures traders and engage in futures trading.
The minimum required number of associated persons of a futures commission merchant and the items required in the futures trading orders form shall be prescribed by the Competent Authority.

(Collection of Trading Margins or Premiums)
A futures commission merchant mandated to engage in futures trading shall collect margins or premiums from the futures traders. For each customer the merchant shall keep a detailed account statement specifying the carrying net value on daily basis.

(Trade Report and Reconciliation Statement)
A futures commission merchant mandated for futures trading shall prepare and submit a trade report to the futures trader after the consummation of the futures transaction, and it shall further prepare and submit a reconciliation statement to each futures trader by the end of each month.
The contents of the trade report and the monthly reconciliation statement referred to in the preceding Paragraph shall be prescribed by the Competent Authority.

(Written Documents Distinguishing Between Proprietary and Brokerage Trades)
A futures commission merchant, when concurrently engaging in proprietary and brokerage businesses shall, in each transaction, distinguish in writing the proprietary and brokerage transactions from one another.

(Segregated Customer Margin/Premium Account)
A futures commission merchant shall open an exclusive customer margin/premium account in a banking institution designated by the Competent Authority, and shall deposit its futures customers' margins or premiums into such an exclusive account. The said account shall be segregated from the account of the futures commission merchant's own assets.
The creditors of futures commission merchants or designated institutions referred to in the preceding Paragraph shall not file an attachment suit or claim any rights on the said segregated customer margin/premium accounts unless otherwise provided for in this Act.

(Circumstances for Withdrawal of Funds from the Segregated Customer Margin/Premium Account)
A futures commission merchant shall not withdraw any fund from the segregated customer margin/premium 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 and/or settlement balance;
3. payment for the futures trader of brokerage commissions, interests, or other transactional fees payable to the futures broker; or
4. other items being approved by the Competent Authority.

(Equity Sufficiency Percentage, Calculation of Net Capital, Capital Sufficiency Ratio, and Relevant Registration)
Where 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 conform to the order within the period, the Competent Authority may, depending on the severity of the case, restrict a part of its business or void its license.
The designated percentage, the calculating 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.

(Prohibition of Discretionary Trading)
A futures commission merchant shall not accept a discretionary authorization to decide the category, quantity, or price of futures transaction on behalf of futures traders. Nonetheless, those in compliance with regulations of the Competent Authority shall not be restricted by the above.
A futures commission merchant shall not engage in any unnecessary transaction on behalf of a futures trader. Futures commission merchants with discretionary authorization under the preceding Paragraph shall also be subject to this provision.

(Conduct Prohibited by FCMs)
A futures commission merchant shall not engage in any of the followings:
1. trading in non-compliance with the instructions or terms of the mandate by the futures trader;
2. conducting futures trades on behalf of a futures trader without the authorization of the futures trader.

(Transfer of Accounts)
The Competent Authority may, in case a futures commission merchant is bankrupt, dissolved, suspended, or is required by acts or regulations to cease to accept trading orders from futures traders, order it to transfer the relevant accounts of its futures traders to another futures commission merchant with whom it has a succession agreement, unless the said futures commission merchant is also a member of a futures clearing house, and is acting pursuant to Article 54.
A futures commission merchant, unless with justified reason and approved by the Competent Authority, shall within two business days of receiving the transfer order from the Competent Authority, transfer the balance of the segregated customer margin/premium account and statements of the futures traders to the designated futures commission merchants as referred to in the preceding Paragraph. The costs of the transfer shall be borne by the transferring futures commission merchant.
A futures commission merchant shall, within two months after commencement of its business operation, register with the Competent Authority for its recordation a photocopy of the succession agreement specifying that another futures commission merchant agrees to assume the relevant accounts of futures traders upon the occurrence of the events referred to in Paragraph 1.

(Obligation to Liquidate Futures Transactions Upon Voidance of the Business License or Suspension of Business)
A futures commission merchant shall liquidate its open futures positions if the Competent Authority in accordance with this Act voids its business license or orders it to suspend operation.

(Continuation of Operation Within the Scope of Liquidating Futures Transactions)
A futures commission merchant whose business has been voided shall be deemed as a futures commission merchant to the extent and within the scope of liquidating its futures transactions; the futures commission merchant ordered to cease operation shall be deemed to be in operation to the extent and within the scope of liquidating its pending transaction.

(Provisions Applied Mutatis Mutandis)
In case 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 Articles 76 and 77 shall apply mutatis mutandis to the situation provided in the preceding Paragraph.

(Provisions Applied Mutatis Mutandis)
Article 17 and Article 18 shall apply mutatis mutandis to futures commission merchants.

(Leverage Transaction Merchants)
Unless approved by the Competent Authority, a leverage transaction merchant shall not engage in futures transaction business.
A leverage transaction merchant shall be authorized and obtain a business license issued by the Competent Authority prior to the commencement of its business operation.
No branch of a leverage transaction merchant shall be established or commence operation without having been approved and issued a business license by the Competent Authority.
The rules regarding establishment criteria and governing regulations for leverage transactions shall be prescribed by the Competent Authority.

(Provisions Applied Mutatis Mutandis)
The provisions of Article 17, Article 18, and Articles 57 to 78 shall apply mutatis mutandis to leverage transaction merchants.

(Futures Service Enterprises)
A futures trust enterprise, managed futures enterprise, futures advisory enterprise or other futures services enterprises shall not commence operation having been approved and issued a business license by the Competent Authority.
No branch office of a futures services enterprise shall be established and commence to operate its business without having been approved and issued a business license by the Competent Authority.
The rules regarding establishment criteria and governing regulations for futures services enterprises shall be prescribed by the Competent Authority.

(Applicable Laws and Regulations)
In addition to this Act or any other regulations promulgated thereunder, other acts governing trust and trust businesses shall be applicable to the regulation of the futures business.

(Regulation of Futures Trust Funds)
Unless it has obtained approval from the Competent Authority or it has filed for registration with the Competent Authority and the registration has become effective, a futures trust enterprise shall not engage in any activity to raise a futures trust fund.
A futures trust enterprise shall deliver a prospectus to prospective subscribers by the method provided by the Competent Authority before raising any futures trust fund. The content required in such prospectus shall be prescribed by the Competent Authority.
A futures trust enterprise that fails to deliver a prospectus in accordance with the preceding paragraph shall be held liable for damages for any injury consequently sustained by bona fide trading counterparties.
The provisions of Article 32 of the Securities and Exchange Act shall apply mutatis mutandis to liability for damages for any injury sustained by a bona fide counterparty because of any misrepresentation or concealment in the main required content of a prospectus.
The rights to claim damages under paragraph 2 shall be extinguished if not exercised within two years from the time the claimant learns of the cause entitling the claimant to claim damages, or within five years from the date of occurrence of the cause for damages.

(Regulation of Futures Trust Funds)
The futures trust funds raised from the public shall be kept segregated and independent from the assets of the futures trust enterprise and the fund custodian institution.
The rules governing the management of the futures trust fund shall be prescribed by the Competent Authority.

(Debts)
No creditors shall file an attachment proceeding or claim any other right against the assets of the futures trust fund to satisfy debts incurred by the futures trust enterprise and the fund custodian institution from such institutions' own assets.

(Written Contract and Risk Disclosure Statement)
Before accepting a mandate by a specific customer to conduct futures trading, a managed futures enterprise shall advise the customer of the nature of futures trading and the inherent risks involved, tender the risk disclosure statement, and sign a written mandate contract with the customer.
The content and format of the written contract and the risk disclosure statement referred to in the preceding Paragraph shall be prescribed by the Competent Authority.
The provisions of Article 84 to Article 86 shall apply mutatis mutandis where the managed futures enterprise raises funds from the public to engage in futures trading.

(Provisions Applied Mutatis Mutandis)
The provisions of Article 17, Article 18, Article 57 to Article 61, Article 63 to Article 66, and Article 74 shall apply mutatis mutandis to the futures services enterprises.