TAIPEI, Sept 8 Taiwan's central bank said on
Thursday it will require local banks to submit applications
before opening foreign currency derivative product accounts for
retail customers and institutional investors.
The new rule comes after the legislature earlier this year
demanded that the central bank tighten regulation of such
The calls for rule-changes came as some Taiwanese banks
suffered losses from customer defaults on a popular derivative
product, as investors were hit by an unexpected slide in China's
The new rule will take effect Sept. 11.
Local banks are already required to send applications for
accounts from institutional investors and high net-worth
institutional clients to the central bank for approval.
(Reporting by Loh Liang-sa; Writing by Faith Hung; Editing by