Sanction on Cathay Futures for Violation of Futures Management-Related Laws and Regulations
1. Date of sanction: August 31, 2023
2. Object of sanction: Cathay Futures Co., Ltd. (hereinafter referred to as Cathay Futures).
3. Legal basis for the sanction: Paragraph 1, Article 100, and subparagraph 2, Paragraph 1, Article 119 of the Futures Trading Act, and Paragraph 2, Article 2 of the Regulations Governing Futures Commission Merchants.
4. Facts of violation: Cathay Futures experienced an abnormal situation in its electronic ordering system on the morning of July 5 and July 10, 2023. After the audit by the Taiwan Futures Exchange, it was found that the company did not conduct parameter capacity testing on the online mechanism of the voucher system, did not perform application system pressure testing, did not include complete trading security and stability specifications in the prescribed rules for the quality of internet ordering services, and did not establish standard operating procedures for the recovery of voucher system failures; besides this, there was insufficient resource allocation of the database host for the voucher system. These were inconsistent with the internal control system requirements of Cathay Futures and are verified to have violated futures management laws and regulations.
5. Sanction imposed: A warning is given to Cathay Futures in accordance with paragraph 1, Article 100 of the Futures Trading Act, and a fine of NT$600,000 is imposed on Cathay Futures in accordance with subparagraph 2, paragraph 1, Article 119 of the same Act.
Contact: Mr. Lin, Section Chief, Securities and Futures Bureau
Contact tel: +886 2 2774 7115.
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Visitor： 651 Update： 2023-09-08