After the legislation of Futures Trading Act in 1997,the development of Taiwan's futures market had become regular. Taiwan Futures Exchange (TAIFEX) came into operation in July 1998. Although the trading volume and traders' accounts in futures was increasing,the scale of futures market didn't enlarge until now. The academic research concerned with the interface of domestic and foreign futures' trading platform had mentioned that the main reason of TAIFEX trading system not functioning was the worldwide futures market under the influence of information technology. The way to match futures trading transformed from open outcry to electronic trading. However, domestic futures electronic trading system differed from those foreign ones in interfaces, services and formats. System renewal, accessibility and its integration resulted in TAIFEX had a disadvantage in operation cost, client scale and products development. The Futures Trading Act in Taiwan didn't prohibit from undertaking futures trading on internet-based futures exchange, and permitted to institute corporate type futures exchange. Until now, there was no development about internet-based exchange. And then, how to construct the legal institutions of internet-based futures exchange was worthy of exploration. At the same time, Taiwan will face with the market access of financial services industries after joining in World Trade Organization. In order to take electronic trading trend of global futures exchange and raise TAIFEX's international competition, we should make a plan of internet-based futures exchange. The Second part of this article generalizes the trend of foreign futures exchange. Part three introduces the main internet-based futures exchange such as American International Securities Exchange and Futurecom Commodity Exchange, from the dimensions of organization and trading institution. Part four explores the necessity and possibility to institute internet-based futures exchange in Taiwan, in point of setup approach, organizational pattern and legal regulation. Part Five points out the statutes or regulations ought to be revised and the items to be adjusted for the institution of internet-based futures exchange. Finally, the article concludes that we should have a schedule and institute the internet-based futures exchange gradually. At first, the problems of information technology and legal regulations ought to be solved. And then, we should increase the opportunity to cooperate with foreign futures exchange and design new futures product besides stock price index futures.