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GreTai Securities Market Regulations Governing the Trading of Financial Derivatives on the GTSM(2011.03.25) |
| Date： |
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Article 30
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For structured instruments sold by a securities firm, the maximum potential loss shall be limited to the original transaction price and a distinction shall be made between principal-protected and non principle-protected products. However, when a structured instrument is sold under the name of a principal-protected product or claims principal protection benefits, it shall be stipulated that the customer may , at maturity or when early rescission made in accordance with the terms of the contract, recover the total amount of the original transaction price.
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Article 31
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When a securities firm undertakes transactions in structured instruments linked to foreign financial products and denominated in New Taiwan Dollars, the contracts shall clearly state that matters connected with foreign exchange settlement are to be carried out in accordance with the Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements or Transactions.
When a securities firm undertakes structured instrument transactions and a dispute arises in the course of trade, it shall handle the matter promptly in accordance with the business dispute resolution procedures provided by its internal control system.
When a securities firm enters into structured instrument transactions with customers, it shall deliver reconciliation statements, in written or electronic form, to the customers on a monthly basis and establish an after-sale product information disclosure system. The content, frequency, and method of disclosure shall be stipulated between the securities firm and the customer; the content of disclosures shall include market prices, price quote information for early cancellation of structured instrument transactions, and profit and loss status.
When structured instruments with the same transaction terms and conditions are sold to ten or more parties, the securities firm shall disclose on its website relevant market price information or price quote information for early cancellation, and shall also disclose relevant information through the GTSM information system.
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