Article Content

Title:

Taiwan Stock Exchange Corporation Regulations Governing Odd-lot Trading of Listed Securities 

Amended Date: 2007.02.15 
Categories: Securities Exchange Market > Trading > Securities Transaction
Article 1     These Regulations are established pursuant to the provisions of Article 70 of the Operating Rules of the Taiwan Stock Exchange Corporation.
Article 2     For the purposes of these Regulations, odd-lot trading means trading of listed domestic or foreign stocks in the same category by the principal where the number of traded stocks is less than the trade units required in the securities exchange market where the stocks are traded.
    With regard to odd-lots of domestic or foreign stocks, each trade unit consists of one share, and the number of traded shares reported must be one share or its integral multiples.
Article 3     Odd-lot trading shall be reported between 1:40 pm and 2:30 pm.
    The TWSE discloses in real time the reported highest purchase and lowest sale price for unconfirmed transactions as shown in the calculation of the trade prices within the five-minute time slot before the end of the report time.
Article 4     The principal must open a central custody book-entry account before a securities broker may accept his or her trading orders.
Article 5     (Deleted.)
Article 6     The reported number of shares in odd-lot trading shall not be more than 999 shares per order.
Article 7     The daily fluctuation in odd-lot trading is governed by Article 63 of the Operating Rules of the Taiwan Stock Exchange Corporation.
Article 8     At the end of report time for odd-lot trading, transactions will be completed via matching in aggregate auction.
    The sequence of executed trades reported shall be determined by the price priority principle. For reported trades of the same price, the sequence shall then be determined in a random order determined by computer.
    Trades reported by securities firm shall be deemed totally or partially executed depending on the status of consignment.
Article 9     Purchases and sales in odd-lot trading shall be combined with regular trading in the Settlement Calculation Sheet and for settlement in accordance with the provisions of Article 104 of the Operating Rules of the Taiwan Stock Exchange Corporation.
Article 10     The prices of stocks reported and transacted in odd-lot trading shall not be deemed the opening and closing prices of the day or used as the basis of record for the highest and lowest price levels.
Article 11     For matters not provided in these Regulations, the applicable regulations in public notices issued pursuant to the Operating Rules of the Taiwan Stock Exchange Corporation shall govern.
Article 12     Delivery , withdrawal and transfer of funds with regard to the central custody of the principal's odd-lot securities shall all be in compliance with the regulations governing centralized securities depository enterprises.
Article 13     These Regulations shall take effect after having been submitted to and approved by the competent authority. Subsequent amendments thereto shall be effected in the same manner.