1.Domestic futures commission merchants (FCMs) are allowed to conduct foreign futures commission services through indirect engagements with foreign FCMs
In order to enhance business efficiency in foreign futures re-brokerage services, the FSC promulgated Order No.1080321267 on August 19, 2019 which stipulates that the domestic futures commission merchant (FCM) is allowed to conduct trades on a foreign futures exchange through direct business engagement with the foreign futures merchant’s worldwide group affiliates. The group affiliates include the holding company by which it is controlled (where such holding company holds more than 50 percent of the merchant''s shares), a subsidiary in which the merchant holds more than 50 percent of the shares, or another subsidiary of the same holding company by which the merchant is controlled (where such more than 50 percent of the shares in such other subsidiary are held by the merchant''s holding company), provided that the said controlled company and subsidiaries are clearing members of the relevant foreign futures exchange.
2.Futures Dealers Exempted from Ceiling on Trading in Futures listed on any Single Foreign Exchange
To facilitate the use of futures dealers’ funds and prevent concentration risks, the FSC announced Order No. 1080320960 on 24 September 2019, stipulating that futures dealers are exempted from the 10% restriction on trading in futures listed on any single foreign exchange, and stipulating that futures dealers trading in futures linked to the securities issued by any single issuer shouldn’t exceed 5% of their net worth.