|
Article 8
|
Securities firms accepting orders to trade foreign securities shall enter into a brokerage contract with the principal for the trading of foreign securities before it may accept orders to trade securities.<br/>The contract referred to in the preceding paragraph shall contain the following particulars:<br/>1. The procedures of executing the brokerage contract, and the period of validity of the contract.<br/>2. The particulars that both parties to the brokerage trading shall observe.<br/>3. The terms of the deposit of purchased foreign securities into a foreign depositary institution.<br/>4. The particulars stated on relevant documents regarding the deposit of purchased foreign securities into a foreign depositary institution.<br/>5. The time period for settlement of trades in foreign securities, the method of payment/acceptance of the settlement money, the currency, the exchange rate and its method of calculation, and matters agreed upon regarding the foreign exchange remittance authorization.<br/>6. The method of handling breach of the settlement obligation.<br/>7. The matters agreed to regarding the handling of dividends and exercise of shareholders rights.<br/>8. The reporting of changes in the basic information of the principal, and indemnity in case of non-reporting.<br/>9. The information and the services that shall be provided by the securities firm.<br/>10. The scope of damages that arise from causes attributable to the other contracting party, arbitration, and the handling of related matters.<br/>11. The method of handling losses not attributable to either party to the contract.<br/>12. Matters regarding the notification regarding amendment to the contract.<br/>13. Matters regarding the rescission or termination of the contract.<br/>14. Other particulars that must be noted that are relevant to the rights and obligations of the parties.<br/>Securities firms’ contracts for brokerage trading of foreign securities shall be reported to the securities dealers association for its record.<br/>The matters to be recorded in a contract entered into between a securities firm and a professional institutional investor or high net worth juristic person investor for brokerage trading of foreign securities shall be decided in accordance with the business needs of both parties, and paragraph 2 shall not apply.
|