These Rules are established according to Article 55 of the Operating Rules of the Taiwan Stock Exchange Corporation.
The trading of corporate bonds shall be conducted in accordance with these Rules. Issues not addressed by these Rules are governed by other relevant laws and regulations or the relevant rules of the TWSE.
The corporate bonds under these Rules shall be settled through book-entry by a central securities depository when traded on the TWSE market, unless otherwise provided.
Securities brokers conducting brokerage trading of corporate bonds shall ascertain the types and volumes of the corporate bonds in the principal's centralized custody account to confirm they are in line with the settlement conditions before proceeding with the sale as entrusted.
The trading orders for corporate bonds shall be given in a single trading unit or multiples thereof.
The trading unit of corporate bonds shall be bonds with a par value of $100,000.
The fluctuation unit (tick) of the trading price of corporate bonds shall be based on bonds with a par value of $100, and the tick for corporate bonds is five cents.
The transaction amount is calculated according to the following formula:
Transaction amount = Trade price ÷ 100 × Trading units × Transacted volume
The price fluctuation limit of corporate bonds shall be five percent above and below the auction price at market opening of the current trading session for stocks.
The price fluctuation limit for trading of an initial listing of corporate bonds is determined on the following basis:
- the public offering price before listing.
- if there is no public offering before listing, the price fluctuation limit is calculated according to the formula prescribed by the issuer prior to the issue.
Trading orders are confined to limit orders.
The priority for satisfying trading orders is determined according to the following principles:
- Higher-priced orders have priority over lower -priced buy orders. Lower-priced sell orders have priority over higher-priced sell orders.
- Where orders are placed at the same price, priority shall be based on time priority principle, provided for orders placed at the same price prior to the opening of the market, priority shall be determined randomly based on computer arrangement.
The competitive auction for trading orders for corporate bonds shall without exception be conducted by call auction, and the principles of determination of trade price shall be subject mutatis mutandis to Paragraph 1, Article 58-3 of the Operating Rules of the TWSE.
The disclosure of the price and volume of trading orders for corporate bonds shall be subject mutatis mutandis to Paragraph 5, Article 58 of the Operating Rules of the TWSE.
Trades of corporate bonds are all ex-dividend trading.
The calculation of interest shall be based on the actual number of days between the interest-bearing commencement date and the trade date by way of including the beginning day and excluding the last day.
Consignment orders and trading shall be suspended two business days prior to the delisting date of corporate bonds.
The clearing and settlement operations of corporate bonds shall be subject mutatis mutandis to the Operating Rules of the TWSE.
These Rules shall take effect after having been submitted to and approved by the competent authority. Subsequent amendments thereto shall be effected in the same manner.