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Article 5
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A customer who trades leveraged and inverse ETNs or options strategy ETNs for the first time shall meet the qualifications described in one of the following subparagraphs:
- Has opened a margin transaction account.
- Has completed trading of call (put) warrants in 10 or more orders in the most recent year.
- Has completed trading of futures trading contracts listed at the Taiwan Futures Exchange in 10 or more orders in the most recent year.
- Has records showing completion of trading of leveraged and inverse ETNs or options strategy ETNs.
The customer may submit a trading request to securities firm through correspondence or in an electronic manner sufficiently to prove their identity and expression of intent.
A person who has obtained leveraged or inverse ETNs or futures and options strategy ETNs by inheritance, gift, final and conclusive court judgment, or other cause reported to and approved by the TWSE may, after submitting documentary proof, sell such securities without being subject to the application of paragraph 1.
The provisions of the first paragraph do not apply to professional institutional investor as defined in the Regulations Governing Offshore Structured Products, private placement securities investment trust fund managed by securities investment trust enterprise, futures trust funds offered to buyers meeting certain qualifications by futures trust enterprise, and discretionary investment accounts managed by securities investment consulting enterprise or securities broker who is also a securities investment consulting enterprise, and discretionary investment accounts managed by managed futures enterprise.
If a customer who has met the qualifications in the first paragraph engages in irregular trading, the securities firm shall evaluate whether the customer has had the trading experience as described in the first paragraph and may refuse their trading request where necessary.
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