Laws Information

法規資訊
Title: Taiwan Futures Exchange Corporation Methods and Standards for Receipt of Clearing Margins
Am Date: 2015-06-30
Legislative History: Articles 5 and 5-1 amended, and Article 4-7 added per 30 June 2015 Letter No. Taiwan-Futures-Clearing-10403006840 of the Taiwan Futures Exchange Corporation; the implementation date will be separately announced
Approved per 29 June 2015 Letter No. Financial-Supervisory-Securities-Futures-1040021026 of the Financial Supervisory Commission

Transaction

Amended

Article 4-7
The clearing margin for a forex futures contract is the futures price multiplied by the contract size multiplied by the risk coefficient.
The risk coefficient of the preceding paragraph is a value calculated with reference to the price volatility of the futures contract and other factors over a given period of time such that one-day price volatility will be covered to at least a 99 percent confidence level.
The collection of margins prescribed in paragraph 1 shall be in units of NT$100, and amounts less than NT$100 shall be automatically rounded upward to NT$100.
Directions governing the procedures for calculation and adjustment of the clearing margin of paragraph 1 shall be separately prescribed by the TAIFEX.
Article 5
If the difference between the current clearing margin level and the level calculated daily according to the provisions of Article 4, Article 4-3, or Article 4-4 for a stock index futures contract, interest-rate futures contract, gold futures contract, or NT Dollar-denominated Gold Futures reaches 10 percent or more, or when necessary based on market conditions, the TAIFEX may adjust the collection level of the clearing margin and round upwards in accordance with paragraph 3 of Article 4, paragraph 3 of Article 4-3, or paragraph 4 of Article 4-4.
The clearing margin for a stock index option contract according to the provisions of Article 4-1 may be adjusted when the movement of the amount derived by multiplying the underlying futures index by the value of each index point by the risk coefficient that is used, in addition to the premium, in calculating the margin reaches 10 percent or more, or when necessary based on market conditions. For contracts quoted in New Taiwan Dollars it shall be calculated in units of NT$1,000, with any portion less than NT$1,000 unconditionally rounded up to NT$1,000; for contracts quoted in US Dollars it shall be calculated in units of US$100, with any portion less than US$100 rounded up to US$100.
Clearing margin for Mini-TAIEX Futures Contracts is adjusted simultaneously in tandem with any adjustment to the clearing margin for TAIEX Futures Contracts; the adjusted amount shall governed by paragraph 4 of Article 4; the provisions of paragraph 1 do not apply to it.
The clearing margin for a gold option contract according to the provisions of Article 4-5 may be adjusted when the movement of the amount derived by multiplying the underlying gold price by the contract size by the risk coefficient that is used, in addition to the premium, in calculating the margin reaches 10 percent or more, or when necessary based on market conditions. It shall be calculated in units of NT$1,000, with any portion less than NT$1,000 unconditionally rounded up to NT$1,000.
For a single-stock futures contract with beneficial certificates as its underlying securities, the amount of the clearing margin calculated daily under Article 4-6 may be adjusted when its movement reaches 10 percent or more, or when necessary based on market conditions. It shall be calculated in units of NT$1,000, with any portion less than NT$1,000 unconditionally rounded up to NT$1,000.
For a single-stock option contract with beneficial certificates as its underlying securities, the clearing margin under Article 4-2, may be adjusted when the movement of the amount derived by multiplying the underlying security price by the strike price multiplier by the risk coefficient that is used, in addition to the premium, in calculating the margin reaches 10 percent or more, or when necessary based on market conditions. It shall be calculated in units of NT$1,000, with any portion less than NT$1,000 unconditionally rounded up to NT$1,000.
If the difference between the current clearing margin level and the level calculated daily according to the provisions of Article 4-7 for a forex future contract reaches 5 percent or more, or when necessary based on market conditions, the TAIFEX may adjust the collection level of the clearing margin and round upwards in accordance with Article 4-7, paragraph 3. An adjustment to the level of a clearing margin by the TAIFEX pursuant to the provisions of this article shall be implemented after the close of trading on the next business day following the announcement date.

Article 5-1
When the clearing margins of individual contracts require adjustment due to revision of contract specifications, the TAIFEX may reset the clearing margins in accordance with Articles 4 to 4-7for implementation from the date the revised contract specifications take effect.