〈Proprietary or broker trading of domestically issued foreign currency denominated ETFs〉
Article 35
Securities enterprises that have obtained the qualification to engage in
proprietary trading of securities or to accept orders to trade securities
on the centralized securities exchange market may also engage in proprietary
or broker trading of foreign currency denominated ETFs without making an
application.
When engaging in the business mentioned in the preceding paragraph, a
securities enterprise shall comply with the following rules:
1.Receipt/payment between the securities enterprise and investors regarding
the purchase and sale of a foreign currency denominated ETF shall be made in
the denominated currency of that ETF.
2.A foreign currency denominated ETF may not be an underlying product in margin
purchase and short sales, securities borrowing and lending, borrowing or
lending money in connection with securities business, or borrowing or lending
money without specific purposes by securities firms, and other relevant
businesses.
3.NTD denominated ETF positions acquired through margin purchase or borrowing
may not be converted into foreign currency denominated ETFs.
4.When the trading order of an investor to buy a foreign currency denominated
ETF fails to be executed and if the securities broker has collected payments
from the investor in advance, the securities broker shall return the advance
payments no later than the next business day following the trading day.
5.When an investor’s amount receivable is greater than the amount payable on
the same settlement day, the securities enterprise may sign an intra-day
overdraft contract with the settlement bank to facilitate timely settlement
with the investor.
6.In the case of out-trade, an investor default on a sale, or an overseas
Chinese or foreign investor requesting a delay in settlement, the securities
enterprise may apply to TWSE for borrowing securities to cover the settlement.