A principal initiating a reverse auction shall select from among the following methods for determining successful bids:
When the quantity of successful bids under the preceding paragraph falls short of the publicly announced reverse auction quantity, the matter shall be handled as publicly announced by the TWSE.
- During the reverse auction, the highest sell quote that does not exceed the reverse auction floor price and that satisfies the reverse auction quantity requirements shall be the successful bid price. All sell quotes priced lower than the successful bid price shall be transacted at the successful bid price. If the quantity of securities for which sell quotes have been submitted at the successful bid price exceeds what can be transacted, each principal will be distributed an integral number of trading units, the quantity to be decided on a pro rata basis according to the quantity specified in each order. If there is still a remainder, distribution shall be conducted randomly by computer, with allocations to individual orders limited to one trading unit.
- During the reverse auction, the lowest sell quote that does not exceed the reverse auction floor price shall have priority of execution, with subsequent transactions executed in a sequence determined on the basis of the prices at which the sell orders were quoted. Where quotes with an identical sell price are submitted, each principal will be distributed an integral number of trading units, the quantity to be decided on a pro rata basis according to the quantity specified in each order. If any quantity remains, further allocations shall be conducted randomly by computer, with allocations to individual orders limited to one trading unit.
Quotes which -- were submitted in violation of Article 3, paragraph 2 by the principal that initiated the reverse auction; or are higher than the reverse auction floor price; or cannot be transacted in compliance with the provisions of paragraph 1; shall be invalid. If an overseas Chinese, foreign national, or mainland area investor engages a securities firm to apply to carry out a reverse auction, and on the day of the auction the quantity applied for exceeds the remaining quantity that the entity is allowed by law or regulation to invest in, the reverse auction shall be carried out for the latter amount. However, if the remaining quantity is insufficient to comply with the minimum reverse auction quantity provisions in the preceding Article, or cannot be confirmed, the reverse auction shall be cancelled.