Laws and Regulations Database of the Central Bank of the Republic of China(Taiwan)

Chapter 1　　General Principles

Article 1
These Regulations are prescribed pursuant to Paragraph 2, Article 35 of The Central 
Bank of the Republic of China (Taiwan) Act.

Article 2 
The provisions of these Regulations shall govern the foreign exchange business of 
securities enterprises. Matters not provided herein shall be subject to provisions 
under other relevant laws and regulations.

Article 3 
The term "securities enterprises" as used in these Regulations shall mean securities 
firms and financial institutions concurrently engaging in securities business 
established in accordance with the Securities & Exchange Act and the Standards 
Governing the Establishment of Securities firms and issued a license by the Financial
Supervisory Commission (the "FSC").

Article 4  
The term "foreign exchange business" as used in these Regulations comprises the 
following categories:
1.Proprietary trading and underwriting  of foreign currency denominated international 
　bonds;
2.Proprietary trading of foreign securities;
3.Spot foreign exchange transaction between foreign currencies in connection with 
　securities business;
4.Foreign exchange derivatives business;
5.Business involving structured products linked to foreign currency denominated financial
　products;
6.Business involving call (put) warrants issued overseas or issued in foreign currency;
7.Accepting orders to trade foreign securities;
8.Trading in foreign bonds as an agent;
9.Acting as the master agent of an offshore fund institution in the offering and sale of 
　its funds in Taiwan;
10.Acting as a local mandated agent of an offshore fund institution to privately place 
　 offshore funds in Taiwan; 
11.Acting as a participating dealer of an offshore exchange traded fund(ETF) to process 
　 (on a brokerage basis) or engage in (on a proprietary basis) the purchase or 
　 redemption of offshore ETFs in Taiwan;
12.Wealth management business by means of non-discretionary individually managed money 
　 trust with the underlying products denominated in foreign currencies; and
13.Other securities-related foreign exchange businesses approved by the Central Bank of 
　 the Republic of China (Taiwan) (hereinafter referred to as the “Bank”).
　 When any of the businesses mentioned in the preceding paragraph involves foreign 
securities or offshore funds, such foreign securities or offshore funds shall not be 
denominated in New Taiwan dollar (NTD) and shall not be linked to NTD exchange rate or 
NTD money market interest rates indices in Taiwan.