internal control is rectified as follows: (1) monitor, inspect and evaluate the effectiveness of the operating procedures of the work unit responsible for the following functions by an independent auditor
secure or satisfy the obligations incurred incidental to or resulted from derivatives transaction for the account of a customer, it shall, in compliance with the rules specified in the notification of the
); (5) review procedures and processes in the management of information security incidents, after the testing under (4) is carried out, at least once a year; (6) evaluate the results of the testing under
liquidity for derivatives trading in derivatives exchange; (4) “ initial margin ” means the minimum amount of assets which a client shall deposit to secure the performance of derivatives when entering a
derivatives broker. “Derivative exchange” means any derivative exchange licensed by the Securities and Exchange Commission. “Initial margin” means the minimum amount of asset a customer must deposit to secure
been kept in custody of a securities company shall not be protected under the measures of protection of the Financial Institutions Development Fund; (3) provide a contract or an agreement on the custody
customer to secure the performance of derivatives contract when a derivative position is initiated; (4) “ maintenance margin ” means the minimum amount of assets to be maintained by a customer as long as the
securities company should arrange an information security system according to the following guidelines: (1) putting in place a secure and efficient system for safekeeping information, evidentiary documentation
where the securities company encounters financial problems, the clients’ money under custody of the securities company shall not be protected under the Deposit Protection Agency Act; (3)2 provide a
with short position) are required to make an initial margin deposit with their futures agent to secure their performance under futures contracts. Since the amount of initial margin is small compared to