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

Chapter 3　　Detailed Provisions – Operation and Management of Foreign Exchange Business

Section 1　　Proprietary Trading and Underwriting of Foreign Currency Denominated International Bonds

Article 17  
Securities enterprises that have obtained the qualification to engage in proprietary 
trading of domestic bonds may also engage in proprietary trading of foreign currency 
denominated international bonds.

Article 18  
Securities enterprises that have been approved by the Bank to underwrite foreign 
currency denominated international bonds may also offer financial planning, evaluation 
and consulting services relating to foreign currency denominated international bonds 
(hereinafter collectively referred to as the “consulting service”).
Securities enterprises that have been approved by the Bank to underwrite foreign 
currency denominated international bonds but offers only consulting service mentioned in 
the preceding paragraph may not engage in underwriting on a firm commitment basis or a 
standby commitment basis. 

Article 19  
A securities enterprise that intends to engage in underwriting of foreign currency 
denominated international bonds shall apply to the Bank for approval by submitting 
documents provided in Article 6 herein, and in addition, documents evidencing its 
qualifications as specified below: 
1.Having the qualification to underwrite domestic securities.
2.Meeting one of the criteria below:
(1)Having a long-term credit rating of BBB (or equivalent) or higher for the latest 
　 year from acredit rating agency approved or recognized by the FSC or an 
　 internationally known credit rating agency; or
(2)The parent company of a foreign securities enterprise has practical experience in 
　 underwriting foreign securities.
3.The regulatory capital adequacy ratio shall meet one of the following requirements:
(1)For domestic securities enterprises, the regulatory capital adequacy ratio in the
　 six months before the date of application shall be at least 200%; for banks and 
　 bills finance companies engaging concurrently in securities business, the regulatory
　 capital adequacy ratio shall reach the statutory ratio; 
(2)For branches of foreign securities enterprises in Taiwan, their head office shall 
　 meet the criteria provided in the preceding item or Paragraph 3, Article 59 of the 
　 Regulations Governing Securities firms.
4.Free of any of the following sanctions:
(1)Any sanction imposed by the FSC during the preceding one year acting pursuant to any 
　 of Subparagraphs 2 ~ 4, Article 66 of the Securities and Exchange Act; and
(2)Any sanction during the preceding one year whereby the GTSM, acting pursuant to its 
　 operating rules or bylaws, has suspended or restricted the firm's trading privileges.
5.No accumulated loss as shown in its latest CPA audited or certified financial 
　statements.

Article 20  
When a securities enterprise engages in the underwriting of a foreign currency 
denominated international bond, receipts and payments between the enterprise and the 
investors and between the enterprise and issuer shall always be made in the denominated 
currency of the international bond.