|
Article 5
|
Participation in the Exchange to transact in securities shall be limited to securities brokers and securities dealers (collectively "securities firms") that has executed a contract for the usage of the centralized securities exchange market ("market usage contract").
Securities firms with the permission of the Competent Authority to concurrently engage in other securities businesses or related businesses, or securities underwriters which have engaged the TWSE to process business matters shall execute their business in accordance with the relevant rules and regulations (Amended on October 30, 1997).
|
|
Article 27
|
Securities firms shall comply with the restrictions prescribed by the Competent Authority under Article 49 of the Securities and Exchange Act requiring that the aggregate liabilities of a securities firm shall not exceed a prescribed multiple of its net capital; and the aggregate current liabilities shall not exceed a prescribed percentage of its aggregate current assets.
Except as to securities firms concurrently operated by financial institutions acting in compliance with the provisions of the Banking Act, a securities firm shall not purchase real estate which is not used for its business purposes. The sum of its aggregate operating real estate and equipment and aggregate non-operating real estate shall not exceed 60 percent of its aggregate assets.
Securities firms shall comply with the regulations of the Competent Authority and set aside a portion of its annual after-tax profit as special reserve.
|
|
Article 78
|
Securities firms engaging on their own or on behalf of others in securities trading margin purchases and short sales business shall handle it in accordance with the Regulations Governing the Conduct of Securities Trading Margin Purchase and Short Sale Operations by Securities Firms, Regulations Governing Securities Finance Enterprises, the Operating Rules for Securities Firms Handling Margin Purchases and Short Sales, or the Operating Rules for Securities Finance Enterprises Handling Margin Purchases and Short Sales.
If, after execution of a trading order through a securities firm that is engaged or acts on behalf of another to handle business under paragraph 1, or after execution of a sale of borrowed securities in accordance with the Taiwan Stock Exchange Corporation Securities Lending and Borrowing Rules, there is any change in the trading category, such change shall be handled in accordance with the provisions of the Directions for Securities Firms Handling Changes to Trading Category.
|
|
Article 85
|
A securities broker shall not accept any discretionary order to decide the type, volume, price or purchase or sale of securities on behalf of its principal.
A securities broker shall not purchase or resell for its own profit any securities it has accepted an order to trade, or guarantee to share profits with its principals, or accept trading orders by installment payments.
When recommending its principals or on website to buy or sell securities, a securities broker shall comply with the "Regulations Governing Securities Brokers' Practice on Recommending Principals to Buy and Sell Securities" as stipulated by the TWSE.
The website provided by securities brokers shall show, in a conspicuous manner, the risk disclosure statement and the alternative to be adopted in case of inability to execute electronic transmission, and the most up-to-date information shall be transmitted. The securities brokers shall carefully select hyperlink websites, and shall be responsible for the supervision and administration of their associates' use of electronic mail, group electronic mail, bulletin board system, website, etc. in activities associated with business operations.
|