Chapter Four Clearing and Settlement |
| Article 18 | The principal holding the Central Bonds deliverable shall complete and send to the securities firm an Application for Registration of Outgoing Transfer for the Central Bonds to be transferred on the following day, before 12 am of the first business day after the trade date, for the securities firm to forward to the clearing bank on the same day. The securities firm shall further ascertain from the clearing bank the balance of the Central Bonds of the principal, by 5 pm of the same day.
The principal will be deemed in breach of contract if failing to act in accordance with the preceding paragraph or in case of insufficient funds in the account, in which case the securities broker shall inform the TWSE, as well as the principal, of the breach before 6 pm of the day of the breach and complete the necessary procedures on behalf of the principal.
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| Article 19 | For Central Bonds traded over the TWSE market, a separate "settlement list" shall be prepared for the bonds, and the funds shall be included in the settlement of normal settlement trades in a different settlement list.
The securities firm shall proceed with settlement according to the "settlement list" for the Central Bonds verified as accurate, and the funds and securities receivable and deliverable shall be calculated based on the balance.
For the securities firm with settlement consideration receivable or payable, settlement procedures shall be completed in accordance with Subparagraph 1, Paragraph 2, and Subparagraph 1, Paragraph 4 of Article 104 of the Operating Rules Of The Taiwan Stock Exchange Corporation.
In case of the Central Bonds deliverable, an application for outgoing transfer shall be filed with the clearing bank on the first business day after the trade date. The clearing bank shall transfer the Central Bonds to the TWSE Central Bonds settlement account with the clearing bank by 10 am of the second business day after the trade date.
In case of Central Bonds receivable, upon payment of the settlement consideration payable according to the third paragraph above, the TWSE will request the clearing bank to transfer the Central Bonds to the Central Bonds settlement account with the clearing bank as held by the party with the Central Bonds receivable.
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| Article 20 | The price payable by the securities firm for purchase of the Central Bonds shall include the interest calculated according to the provisions in Article 17, except where trade is executed on the second business day before the interest payment date of the Central Bonds, in which case the price payable for purchase of the Central Bonds does not include the interest accrued for the current period.
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| Article 21 | In the event settlement of the Central Bonds deliverable is not completed within the time prescribed in Article 19, a security bond in the amount equivalent to 120% of the closing price of the bonds on the previous business day in the form of a demand bill issued by the bank appointed by the TWSE or in cash shall be deposited in the account designated by the TWSE. In the absence of a closing price on the previous day, the last available closing price shall be used.
In the event settlement of the Central Bonds deliverable is not completed by 11 am, the TWSE may use the security bond in the preceding paragraph to acquire the Central Bonds in the market and return the remaining balance of the security bond to the security firm upon completing the settlement on said firm's behalf.
Failure to complete settlement of deliverable Central Bonds by 11 am to furnish a security bond according to the first paragraph is deemed violation of the settlement obligation.
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| Article 22 | In cases where the centralized securities exchange market is closed on the settlement date of the Central Bonds due to natural disaster etc., settlement of the Central Bonds that are due for settlement shall be postponed to the day business is resumed, in which case interest shall accrue until the new settlement day according to Article 17.
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| Article 23 | In the event a local government institution in certain areas announces closure of offices due to natural disaster etc. or election day, settlement of the Central Bonds that are due for settlement shall be postponed to the day business is resumed, in which case interest shall accrue until the new settlement day according to Article 17.
In areas where settlement of funds and securities is postponed, the net amount of the Central Bonds deliverable by all the securities firm in these areas for settlement in the market shall be acquired by the TWSE at the bonds and securities lending center or at the market for interim settlement on behalf of these securities firms.
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