(19)Third-country CCPs that want to clear derivatives in Taiwan have to apply to the FSC for approval in accordance with the Standards. According to Article 45(1), 2nd part, of the FTA, an approval and business license to operate a futures clearing house can also be obtained by ‘other institutions’ which include CCPs established outside Taiwan. For such third-country CCPs the legally binding requirements applicable to CCPs authorised in Taiwan do apply. Moreover, third-country CCPs can be recognised by the FSC according to the Foreign CCPs Recognition Rule and a two-scenario approach for recognition is as follows: Where the supervision regulations and the regulatory regime of a foreign CCP are compliant with the Principles for Financial Market Infrastructures (PFMIs) issued by the Committee on Payments and Market Infrastructures (CPMI) and the International Organisation of Securities Commissions (IOSCO) or other FSC-recognised international standards, and a foreign CCP has been recognised by the third-country competent authorities as a Qualifying CCP (QCCP) that CCP may provide OTC derivatives clearing services to Taiwanese financial institutions. Where a foreign CCP has not been recognised by the third-country competent authority as a QCCP and intends to apply for recognition as a QCCP by the FSC, the foreign CCP shall submit an application to the FSC demonstrating its qualification as a QCCP under the Basel Committee on Banking Supervision’s capital requirements for bank exposures to central counterparties. This allows Taiwanese clearing members to apply lower risk weights to exposures to such third-country CCPs. According to Article 6 of the FTA, the FSC is empowered to ‘enter into cooperation agreements with foreign government agencies, institutions, or international organizations to facilitate matters such as information exchange, technical cooperation, and investigation assistance’.