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[Law Basis]
[Print]
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Section 3 Spot Transaction Business Between Foreign Currencies
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Article 24
Spot foreign exchange transactions between foreign currencies in connection with
securities business (hereinafter referred to as“spot transaction business between
foreign currencies”) mean spot transactions business between foreign currencies taking
place between an integrated securities enterprise that concurrently engages in
underwriting, dealership and brokerage business provided in Article 16 of the Securities
and Exchange Act and its clients that meet the essential conditions for securities
trading purpose.
The“essential conditions for securities trading purpose”referred to in the preceding
paragraph shall meet the following criteria:
1.The amount of spot transaction between foreign currencies does not exceed the amount of
foreign currency securities transaction and related fees;
2.The spot transaction between foreign currencies and the transaction of foreign currency
securities are carried out contemporaneously with the same client, and the former is
settled by the relevant securities settlement deadline; and
3.The transaction is not on a leveraged, margined or financed basis.
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Article 25
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For a securities enterprise that intends to engage in spot transaction business
between foreign currencies, its head office shall apply to the Bank for approval by
submitting documents provided in Article 6 herein, and in addition, documents
evidencing its qualifications specified below:
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1.Having been approved by the Bank to engage in any of the businesses provided in
the subparagraphs of Paragraph 1, Article 4 herein and having a record of
conducting such business.
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2.Its networth shown in the latest CPA audited or certified financial statement meets
the criteria prescribed by the FSC for a securities enterprise that applies for the
setup of an OSU in Taiwan to engage in all of the businesses provided in the
subparagraphs of Paragraph 1, Article 22-4 of the Offshore Banking Act.
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3.Compliance and sound operation: Free of sanction due to serious violation of rules
during the preceding three years before application, or the securities enterprise with
sanctioned violation has effected specific improvement and has satisfied the competent
authority or the Bank.
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4.Its operations and auditing personnel shall meet the following qualifications:
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(1)An operations personnel must have at least three-month working experience in relevant
foreign exchange business or have completed at least 12 hours of foreign exchange
regulations related courses given by domestic financial training institutions and
have at least 20 business days of practical training in relevant foreign exchange
business at an authorized bank.
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(2) An auditing personnel must have at least six-month working experience in relevant
foreign exchange business, or have completed at least 12 hours of foreign exchange
regulations related courses given by domestic financial training institutions and
have at least 40 business days of practical training in relevant foreign exchange
business at an authorized bank.
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5.Its computer equipment and related operating environment are adequate to properly
handle matters provided in Article 26 herein.
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Branches of securities enterprises may not apply for approval to engage in spot
transaction business between foreign currencies until their head office has been
approved by the Bank to do so and has operated the business smoothly.
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Article 26
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Securities enterprises shall prepare other transaction certificates for their spot
transaction business between foreign currencies, and deliver such certificates to
clients or process them in the method as agreed with the client.
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The“other transaction certificates” mentioned in the preceding paragraph may be
made via electronic form.
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Securities enterprises shall submit relevant data to the Bank on transactions
mentioned in Paragraph 1 hereof on the previous business day by means of electronic
medium before 12:00 noon on the following business day. The format and content of
reporting shall be regulated by the Bank separately.
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Article 27
If relocation or a name change is made by a securities enterprise that has been
approved to engage in spot transaction business between foreign currencies, the
enterprise shall report the change to the Bank for record within seven (7) days after
the receipt of a new business license or permit from the competent authority. In the
case of relocation, the securities enterprise shall also submit the qualification
documents of its operations and auditing personnel.
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