| Article 6 |
When any of the following circumstances applies to the trading of securities, the TWSE will immediately announce that the security will be subject to disposition measures:
- The TWSE has announced trading information for a particular security pursuant to Article 4, paragraph 1, subparagraph 1 for a period of 3 consecutive business days.
- The TWSE has announced trading information for a particular security pursuant to Article 4, paragraph 1, subparagraphs 1 to 8 for a period of 5 consecutive business days, or for any 6 business days with the most recent 10-day period, or for any 12 business days within the most recent 30-day period.
Where measures under paragraph 1 have been announced for a particular security for the first time within the most recent 30 business days, the TWSE will simultaneously adopt the following measures within 10 business days of the next business day after the condition occurs:
- Conducting trade matching for the securities with manually controlled trade matching terminals (matching approximately every 5 minutes, or for securities placed under altered trading methods, every 10 minutes; for securities under altered trading methods for which periodic call auction is also used, approximately every 45 minutes).
- Notifying securities brokers that when an investor's daily volume of trading orders for the security during the given period consists of a single trade of 10 trading units or multiple trades with an aggregate total of 30 trading units or more, they shall collect from the investor the full amount of the buy-side price or sell-side securities for trades already consigned that day; for margin trading, they shall collect in full the margin for the purchase or the short sale. For further trading orders in excess of the aforementioned amounts on the same day, the buy-side price or sell-side securities shall also be collected in full, and for margin trading, the margins shall also be collected in full. This, however, shall not apply to liquidation of margin trades or orders to trade the security through a default account, a call (put) warrant liquidity provider account or a call (put) warrant hedging account (excluding such accounts with an account number with the first three digits as "929").
When the measures under paragraph 1 have been announced two or more times (inclusive) for a particular security within the most recent 30 business days, the TWSE will simultaneously adopt the following measures within 10 business days of the next business day after the occurrence:
- Conducting trade matching for the securities with manually controlled trade matching terminals (matching approximately every 20 minutes; for securities under altered trading methods, approximately every 25 minutes; for securities under altered trading methods for which periodic call auction is also used, approximately every 60 minutes).
- Notifying securities brokers that for an investor's daily volume of trading orders for the security during the given period, they shall collect from the investor in full the buy-side price or sell-side securities for trades already consigned that day; for margin trading, they shall collect in full the margin for the purchase or the short sale. This, however, shall not apply to liquidation of margin trades or orders to trade the security through a default account, a call (put) warrant liquidity provider account or a call (put) warrant hedging account (excluding such accounts with an account number with the first three digits as "929").
Where trading information has been announced for a particular security by the TWSE for three consecutive business days pursuant to Article 4, paragraph 1, subparagraph 1, or for five consecutive business days pursuant to Article 4, paragraph 1, subparagraphs 1 to 8, and disposition is announced pursuant to paragraph 2 or 3 herein, and attention to trading information has been announced pursuant Article 4, paragraph 1, subparagraph 13 during the period when basis of disposition to be announced is being calculated, the effective period of the disposition measures for that security is changed to 12 business days from the next business day.
When measures are announced for a particular security pursuant to paragraph 2 or 3 herein and reasons for announcement include circumstances under Article 4, paragraph 1, subparagraph 6, or during the period of disposition the TWSE further announces trading information pursuant to the aforementioned subparagraph 6 and analysis shows irregularities; or when the TWSE announces trading information pursuant to Article 4, paragraph 1, subparagraph 9, 10, 11, 12 or 13 and analysis shows irregularities; or when the TWSE deems that there is a securities trading irregularity with the likelihood of a significant impact on the security of settlements in the market, or under other circumstances when it is necessary to maintain order in the markets or the security of settlements, then after reporting to the Surveillance Operations Oversight Committee for a resolution, the TWSE may adopt the following disposition measures:
- The measures under paragraphs 2 and 3, provided that these may be adjusted when necessary, as follows:
- The time at which trade matching of the security is done using manually controlled trade matching terminals.
- Whether, when the investor places the order for the security involved in the irregular trading, there is advance collection of all or a specific proportion of the buy-side price, sell-side securities, margin for margin purchase, or margin for short sale.
- The effective period of the measures.
- Amounts of reported daily sales or purchases of the given security may not exceed NT$60 million by the head office of any securities firm or NT$10 million by a branch office of any securities firm; when necessary, the amounts of reported daily sales or purchases of the given security at the head offices and branch offices of securities firms may be adjusted based on the current trading in that security, its market value, or the capitalization of the issuing company; provided, however, that this shall not apply to liquidation of margin trades or orders to trade the security through a default account, a call (put) warrant liquidity provider account or a call (put) warrant hedging account (excluding such accounts with an account number with the first three digits as "929").
- Notifying all securities firms to make an additional submission to the Clearing and Settlement Fund when trading the security involved in irregular trading.
- Temporarily suspending margin purchases and short sales of the given security, provided that this shall not apply for already concluded trades.
- Suspending trading of the given security for a specific period after reporting to and receiving approval from the competent authority.
- Other measures.
Measures for disposition under subparagraph 2 of the preceding paragraph may also be adopted pursuant to a resolution of the special management committee of the Joint Responsibility System Clearing and Settlement Fund, which may prescribe the amounts of reported daily purchases or sales of the given security by securities firms and the period of disposition.
When disposition measures are adopted with respect to trading in a given security by resolution of the Surveillance Operations Oversight Committee or the special management committee of the Joint Responsibility System Clearing and Settlement Fund, the number of days on which trading information is announced prior to implementation of the measures or during the effective period of the disposition need not be included in the calculation under paragraph 1 for announcement of basis of disposition.
Where an issuing company submits specific financial and business information to request a response after disposition measures in respect of a security have been announced, it may terminate or adjust such measures subject to the discussion and resolution of the Surveillance Operations Oversight Committee.
If during a period of any measure an order is placed for trading of the given securities under an omnibus trading account of a securities broker, the provisions for that measure shall apply, and the securities firm shall collect all or a specific proportion of the buy-side price or sell-side securities from any representative (mandatary) for any principal thereunder that reaches the threshold.
When the trading volume of a security is below 1,000 units, the provisions of Article 2, paragraph 4 shall apply mutatis mutandis to the numerical standards for the unit of the trading (or order) volume.
|
|