Chapter 4 ETF Beneficial Certificates and Underlying ETF Beneficial Certificates Traded in Foreign Currency |
| Article 15 | A principal to trade in ETF beneficial certificate in foreign currency may not do so until after it has opened a foreign savings account with a foreign exchange bank designated by a securities broker.
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| Article 16 | A securities broker to accept an order of a principal for the purchase of foreign-currency ETF beneficial certificates shall collect full payment before proceeding to report the purchase, unless the principal has engaged a trustee institution to handle settlement affairs.
The advance collection of payment for the purchase mentioned in the preceding paragraph is governed by the Operation Directions for the Advance Collection of Funds and Securities by Securities Brokers in Brokerage Trading mutatis mutandis.
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| Article 17 | ETF beneficial certificates traded in foreign currency are not eligible for margin purchases and short sales, day trades, money lending and borrowing transactions in connection with securities business, money lending and borrowing transactions for indefinite purpose, financing of securities settlement, securities secured lending, and securities lending and borrowing transactions, nor may they be used as collaterals.
The securities lending and borrowing transactions in the preceding paragraph do not include securities to be borrowed for settlement pursuant to Article 109 of the TWSE Operating Rules.
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| Article 18 | The total reported dollar amount of trading orders entered by a securities firm for foreign-currency ETF beneficial certificates for its own account or on behalf of principals in a single day is governed by Article 28-1 of the TWSE Operating Rules.
The reported dollar amount of ETF beneficial certificates traded in foreign currency is included in the total reported trading amount in the preceding paragraph upon conversion at the exchange rate posted on the preceding day by the bank designated by the TWSE.
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| Article 19 | The beneficial certificates in Article 2, subparagraph 2, item 1 and their underlying ETF beneficial certificates may be swapped with each other at the ratio of one trading unit to one trading unit.
If a principal applies to a securities broker for swapping, the TWSE will seek confirmation from a central securities depository that the amount sought in the application is less than or equal to the balance available in the custodial book-entry account and, upon such confirmation, advise the securities firm in response of the success of the swap application.
The swap time is between 8:30 A.M. and 4:25 P.M.
No swap application is allowed in respect of the beneficial certificates in paragraph 1 if they are used for purchasing and borrowing positions by way of margin purchase.
The beneficial certificates in Article 2, subparagraph 2, item 1 and their additional ETF beneficial certificates shall, during the split and reverse split period, stop swapping from two business days before the lock-up date to until the end of the lock-up period.
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| Article 20 | No creation and redemption of underlying ETF beneficial certificates is permitted.
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