The settlement mode of the financial futures market in Taiwan Province Province of China is the exclusive mode of the exchange, that is, the settlement institution (department) established in the futures exchange acts as the central counterparty of the futures market and performs the settlement obligations for the market. As a result, the settlement department of Taiwan Province Futures Exchange has become the settlement business center of the whole futures market in Taiwan Province Province.

In addition, according to the qualification of settlement business, the settlement system of Taiwan Province futures market can be divided into three categories: individual settlement members, general settlement members and special settlement members. Individual settlement members can only handle settlement and delivery for their own brokerage or proprietary business; General settlement members can handle settlement and delivery business not only for themselves, but also for other futures dealers or commission agents. Special clearing members are financial institutions that can only handle clearing and delivery business for futures commission merchants.

Therefore, from the settlement level, the settlement structure of Taiwan Province financial futures market can be divided into three levels, namely, the exchange settles for settlement members, settlement members settle for non-settlement members, and non-settlement members settle for customers. The above-mentioned three-level settlement mode enables market risks to be dispersed and resolved in multiple settlement links, and all settlement levels strive to control risks due to certain risk pressures, thus reducing the probability of concentrated market risks.

As of June 5th, 2004+10/October 5th, Taiwan Province Futures Exchange has 32 settlement members, including 9 individual settlement members, 23 full settlement members and no special settlement members.