In order to serve the real economy and enhance the use of futures commission merchants' own funds, the FSC issued an order on April 7, 2022 to allow domestic specialized futures commission merchants to invest their own funds in domestic trading companies for engagement in warehouse receipt related businesses.
   Based on the consideration of expanding business development of domestic futures commission merchants, the FSC allows futures commission merchants to invest in domestic trading companies with the limitation of only one trading company for each. The trading company must be 100% owned by the futures commission merchant, with a minimum paid-in capital of NT$100 million. The businesses of the trading company are limited to the trading, exchange, hedging, financing and other businesses related to warehouse receipts on domestic and foreign futures exchanges. The specialized futures commission merchant shall include the trading company in the "Supervision of Subsidiaries" of its internal control system, and formulate norms and procedures for its supervision and management.
At present, Taiwan's futures market is dominated by financial futures. The opening up will not only help futures commission merchants develop their business, but also expand to serve the real sector of the economy; it will also generate considerable benefits to the metal industry and warehousing industry, as well as the economy of Kaohsiung Port, which is designated by the London Metal Exchange (LME) as the location for its authorized warehouse.

Contact unit: Futures Trading Division, Securities and Futures Bureau
Contact phone No. : (02)2774-7360
For any questions, please send e-mail to: FSCMAIL