| Title： |
Taiwan Stock Exchange Corporation Rules Governing Block Trading of Listed Securities(2008.12.25) |
| Date： |
|
|
Article 3-1
|
Quotes of volume for block trades are not required to be for single trading units or integral multiples thereof; they may be for single shares or integral multiples thereof.
The tick increment of price quotes for block trades is one cent.
Article 63 of the TWSE Operating Rules applies to the fluctuation ranges of price quotes as in the preceding paragraph, and the daily fluctuation limits shall comply with the provision on tick size as in Article 62 of the TWSE Operating Rules.
|
|
Article 5
|
Trading hours for non-paired trades are 9 a.m. to 5 p.m.
A quote for a non-paired trade to be settled on transaction date is valid only until 1:50 p.m. of that same day.
Placement of quotes for non-paired trades will be temporarily suspended on an ex-dividend or ex-rights date of a listed security and the next business day thereafter, and on trading days on which no price fluctuation limit is imposed under Article 63, paragraph 2 of the TWSE Operating Rules.
|
|
Article 9
|
During the trading periods specified in Article 5, paragraph 1, the TWSE will post real-time information on unexecuted quotes for non-paired trades.
Transaction information regarding non-paired trades will be publicly announced in real time through a system for the posting of trading information.
|
|
Article 10
|
The trading periods for paired trades are from 8 a.m. to 8:30 a.m., and 9:00 a.m. 5 p.m.
A quote for a paired trade is valid during all trading periods that same day and, prior to execution, the original quote for a current paired trade may be canceled during any trading period; provided, that a quote for settlement on the transaction date is only valid until 1:50 p.m. that same day.
|
|
Article 11
|
(Deleted)
|
|
Article 12
|
Placement of quotes for paired trades will be temporarily suspended on an ex-dividend or ex-rights date of a listed security and the next business day thereafter, and on trading days on which no price fluctuation limit is imposed under Article 63, paragraph 2 of the TWSE Operating Rules.
|
|
Article 15
|
When it places a bid or ask quote for a paired trade, a securities firm shall do so in accordance with the following provisions (the quote for the paired trade will not be matched and executed unless the settlement dates, ticker codes, unit prices, and volumes of the subject securities of the paired trade match up correctly and the TWSE has checked and found the quote to be in compliance with block trading requirements):
1. When both the bid and ask quotes for the same paired trade are placed by a single securities firm, the firm shall first submit a quote indicating the group code, settlement date, securities firm code, ticker code(s), unit price(s), a listing of purchases and sales, and total volume of the paired trade, and thereafter submit the order ticket number, type of the order, account number of the principal (or dealer), and trading order volume.
2. When either bid or ask quotes for the same paired trade are placed by different securities firms, the group code, settlement date, code for each securities firm, ticker code(s), unit price(s), a listing of purchases and sales, and the total trade volume shall first be provided in a quote placed by one of the ask-side securities firms acting as representative for the other(s). The ask-side representative and each of the other securities firms participating in the paired trade shall then each separately provide an order ticket number, type of the order, their principal (or dealer) account number, and trading order volume.
Where a block trade of a basket of stocks is conducted as a paired trade, only one principal's account number (or dealer's account number) will be provided for the bid and ask quotes, respectively, and the settlement date, stock codes, unit prices, and volumes must match up. Matching and execution based on the current pair as quoted will not be carried out until the quote has been checked by the TWSE and found to be in compliance with block trading requirements.
|
|
Article 18
|
Where a block trade is settled on the transaction date, settlement prices and securities that are receivable or deliverable will be settled in accordance with the following provisions:
1. A securities firm required to pay a settlement price shall remit the amount payable by 2:30 pm into the segregated clearing account opened by the TWSE at the Central Bank via the Interbank Funds Allocation and Clearing System of the Central Bank. Where a securities firm is required to deliver securities, the TWSE will notify the central securities depository to carry out book-entry transfer procedures.
2. For a securities firm to which a settlement price is owed, the TWSE will, after 2:30 pm, remit the amount into its account via the Interbank Funds Allocation and Clearing System of the Central Bank; for a securities firm to which securities are owed, after the payable settlement price referred to in the preceding subparagraph has been paid and the TWSE has checked and verified completion thereof, the TWSE will notify the central securities depository to carry out book-entry transfer procedures.
If a seller's securities firm is unable to complete settlement obligations because of default by the seller, an out-trade, or some other legitimate reason, after it files a report, the TWSE will produce a statement and electronic file and transmit them to the central securities depository to carry out related procedures. The seller's securities firm shall calculate collateral in an amount equal to 120 percent of the amount obtained by multiplying the closing price of those securities on the transaction date by the volume reported; the collateral shall be incorporated into the calculation of the given day's settlement prices receivable or deliverable for block trading to be settled on the transaction date, and settlement shall be performed on a netting basis in accordance with paragraph 1.
If a securities firm fails to perform settlement in accordance with paragraph 1, subparagraph 1, the TWSE will impose a delinquency penalty of NT$30,000 for a delay of an hour or less, and an additional NT$10,000 for each additional hour's delay.
Failure by a securities firm to perform settlement by the prescribed time will be deemed default on settlement obligations, but this does not apply where settlement is completed within banking hours on the current day.
|