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

Subsection 6　　Business of Acting as a Participating Dealer of an Offshore Exchange Traded Fund

Article 31  
When a securities enterprise intends to act as a participating dealer for an 
offshore exchange traded fund (hereinafter referred to as “ETF”) to process 
(on a brokerage basis) or engage in (on a proprietary basis) purchase or 
redemption of an offshore ETF in Taiwan (hereinafter referred to as “offshore 
ETF participating dealer business), the securities enterprise shall apply to 
the Bank for approval or report to the Bank for record by submitting the 
following documents before commencing the business:
1.When acting as a participating dealer of an offshore ETF for the first time, 
　the securities enterprise shall apply to the Bank for approval by submitting 
　documents provided in Article 7 herein, and in addition, documents evidencing 
　approval from or completing effective registration with the FSC for the ETF 
　and a business plan (including business profile, operating process, 
　receipt/payment procedure, and hedging arrangements).
2.When the securities enterprise subsequently intends to act as a participating 
　dealer for another offshore ETF, it only needs to report to the Bank for 
　record before commencement by submitting documents evidencing approval from 
　or completing effective registration with the FSC for that ETF.

Article 32  
When a securities enterprise engages in Offshore ETF Participating Dealer 
Business, receipt/payment between the participating dealer and investors 
shall always be made in the denominated currency of that offshore ETF as 
listed on the centralized securities exchange market.