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

Subsection 4　　Business of Accepting Orders to Trade Foreign Securities

Article 27   
A securities enterprise that intends to accept orders to trade foreign 
securities for the first time shall apply to the Bank for approval by 
submitting documents provided in Article 7 herein, and in addition, a 
business plan (including operational principles and business practice, 
procedures of receipt/payment handling and operating process).
When a securities enterprise already approved by the Bank to accept orders 
to trade foreign securities with receipt/payment of settlement and fees in 
foreign currency intends to engage in receipt/payment in NTD, the securities 
enterprise shall apply to the Bank for approval with the following documents：
1. A photocopy of the Bank’s letter of approval for the securities enterprise 
　 to accept orders to trade foreign securities with receipt/payment of 
　 settlement and fees in foreign currency;
2. A photocopy of letter of approval from the FSC;
3. A statement supporting that the applicant’s computer system is able to meet 
　 the requirements set out in Article 28 herein regarding receipt/payment in 
　 different currencies; and
4. A description of the controls for receipt/payment of settlement and fees in 
　 different currencies.
When A DSF that accepts orders to trade foreign securities with receipt/payment 
settled in foreign currency intends to keep the customer’s settlement funds in 
a segregated foreign currency account opened with the authorized bank 
(hereinafter referred to as "customer’s foreign currency account"), the DSF 
shall first apply to the Taiwan Stock Exchange (hereinafter referred to as 
“TWSE”) for approval and then report to the Bank for record by submitting a 
description of operations (including the operating process of receipt/payment 
handling and the foreign exchange settlement against NTD in the customer’s 
foreign currency account) one week before the date of commencement. The DSF 
shall forthwith inform the Bank when the customer’s foreign currency account 
is suspended or reinstated.

Article 28  
A securities enterprise that accepts orders to trade foreign securities shall 
comply with the following rules with regard to receipt/payment of settlement 
and fees with customers:
1. When a customer designates the settlement to be made in a foreign currency, 
　 the related receipt/payment shall be made in the foreign currency; and
2. When a customer designates the settlement to be made in NTD, the related 
　 receipt/payment shall be made in NTD.
A DSF that keeps the customer’s settlement funds in the customer’s foreign 
currency account shall comply with the following rules regarding the scope of 
the customer’s foreign currency account, transfer or payment of funds, and 
declaration of the foreign exchange settlement against NTD：
1. Funds retained in the customer’s foreign currency account are limited to 
　 the settlement amount, fees and related distributable dividends and interest 
　 after executing the order to sell/buy foreign securities.
2. Funds deposited in the customer’s foreign currency account shall only be 
　 transfered through the following means：
　 (1) To be paid for the settlement amount in foreign currency in connection 
　　　 with the securities business with the DSF.
　 (2) To be transferred, in accordance with the customer's instructions, to 
　　　 the customer's personal subaccount of the DSF’s other custodial account 
　　　 set up according to the FSC’s relevant regulations, or to the customer's 
　　　 personal bank deposit account agreed upon in advance between the DSF and 
　　　 the customer.
3. A DSF handling the foreign exchange settlement against NTD or the conversion 
　 between foreign currencies shall comply with the provisions of Article 53 
　 herein and assist the customer to declare the settlement in the name of the 
　 customer.