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Article 55
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When any of the following circumstances applies to a securities firm, the TPEx may suspend or terminate its financial derivatives trading, provided that such action shall not affect the validity of an already-transacted derivative product:
- Imposition of a penalty pursuant to subparagraph 2 of the preceding article three or more times during the preceding half-year.
- Failure to pay a penalty imposed pursuant to subparagraph 2 of the preceding article.
- Noncompliance with the conditions of Article 11, paragraph 1, subparagraph 1 or 2.
- Noncompliance with Article 12 by a foreign securities firm.
- The regulatory capital adequacy ratio of the securities firm has remained below 200 percent for 3 consecutive months.
- Receipt of a sanction from the competent authority under Article 66, subparagraph 2 of the Securities and Exchange Act due to financial derivatives business.
- Violation of Article 37-1, Article 39 or Article 40 and the violation is of a material nature.
- A violation of these Regulations or of related TPEx Regulations that has a material effect on the rights and interests of investors or orderly trading in the market.
- A material instance of inability to perform on a financial derivatives trade.
- Assessment, in accordance with the Directions for Risk Management Assessment Systems of Securities Firms, finding that the securities firm was Grade 5 during the most recent period or Grade 4 during the two most recent periods, or failure to conduct an assessment.
- The securities firm has failed to engage in financial derivative product trading business for 1 year after becoming qualified to engage in such business.
When a securities firm's qualification for trading of financial derivatives has been suspended or terminated due to circumstances under any subparagraph of the preceding paragraph, upon the extinguishment of the cause and in the absence of a cause under any other subparagraph of that paragraph, the securities firm may apply for restoration of its qualification by submitting relevant evidentiary documentation. The TPEx may restore the firm's qualification after performing a verification review and reporting to and receiving the consent of the competent authority.
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