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Article 4
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A principal that trades in leveraged or inverse securities investment trust ETF beneficial certificates or leveraged or inverse ETF beneficial certificates for the first time is required to meet at least one of the following conditions:
- The principal has opened a margin account.
- The principal has had at least 10 trading orders for call (put) warrants executed within the most recent one year.
- The principal has had at least 10 trading orders of futures trading contracts listed on the Taiwan Futures Exchange executed within the most recent one year.
- The principal has trade confirmation records of leveraged and inverse securities investment trust ETF beneficial certificates or leveraged and inverse futures ETF beneficial certificates.
The principal may apply to a securities firm by correspondence or electronic means that is sufficient to identify the applicant as the principal himself/herself/itself and confirm his/her/its indication of intent.
Professional institutional investors that conform to Article 3 of the Regulations Governing Offshore Structured Products, privately placed securities investment trust funds managed by professional institutional investors or SITEs, futures trust funds offered by futures trust enterprises to persons with prescribed qualifications, discretionary investment accounts managed by SITEs, securities investment consulting enterprises or securities brokers concurrently operating securities investment consulting enterprises, or discretionary investment accounts managed by managed future enterprises are not governed by paragraph 1.
Should the principal engage in irregular trade in order to fulfill the conditions in the first paragraph, the securities firm shall ascertain whether the principal has actual trading experience in respect of beneficial certificates as mentioned in the first paragraph and may, where necessary, refuse to accept trading orders from the principal.
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