Taipei Exchange

To protect general investors against the risks associated with complex or high-risk financial products, over-the-counter financial derivatives that a securities firm or leverage transaction merchant (LTM) may offer to investors must meet the investor"s risk profile. Types of products that may be offered to retail investors are limited to the following:

Type	Securities firm	LTM
Structured products	◎	◎
Foreign currency margin trading	Not allowed	◎
Plain vanilla foreign exchange forward	◎	Not allowed
Buy plain vanilla foreign exchange option	◎	Not allowed
Buy Taiwan equity option	◎	◎
Buy asset swaps option	◎	◎
Gold CFDs, Silver CFDs, Oil CFDs	Not allowed	◎
Foreign equity (ETF included) CFDs1	Not allowed	◎
Foreign equity index CFDs2		◎

1. Only underlyings of the published “eligible foreign contract list” in accordance with Article 5 of the Futures Trading Act can be the underlyings of the foreign equity CFDs.
2. Only DAX Index (DAX 30), Dow Jones Industrial Average (DJIA), Standard & Poor’s500 Index (S&P 500), Nasdaq 100 Index (NASDAQ 100), Nikkei 225 Index(Nikkei 225) and Hang Seng Index (HSI) can be the underlyings of the foreign equity index CFDs.

Investors can search the TPEx website (www.tpex.org.tw) to find out whether a securities firm has the qualification to operate financial derivatives business (Home > Derivatives > TPEx Derivatives > Investor > List of Securities Firms Who Have Obtained Derivative Business Qualifications).

Trading warrants are like trading stocks. The investor is required to pay a fee while buying warrants and pay a transaction tax (trading price x 0.1%) in addition to the aforementioned fee while selling warrants.