Section 3 Adjustment to the margin purchase leverage ratio and short sale margin |
| Article 26 | The TWSE or TPEx will review each day the prices and trade volumes of TWSE or TPEx securities eligible for margin purchase and short sale, and will reduce the margin purchase leverage ratio by 10% and raise the short sale margin by 10% on the following business day in the event of excessively intense share price volatility or excessively irregular trade volume for five consecutive business days or six out of the last ten business days, or in the event of excessively concentrated equity or beneficial ownership as disclosed by information relating to the equity of a TWSE or TPEx listed company or foreign issuer holding an ordinary shareholders' meeting or to the beneficial rights of a securities investment trust enterprise holding a fund beneficiaries meeting. Whether the above occurs contemporaneously or successively, the margin purchase leverage ratio will be reduced by 10% and the short sale margin raised by 10% only, upon such occurrence.
The preceding paragraph does not apply to ETF beneficial certificates, offshore ETF beneficial certificates, and futures ETF beneficial certificates.
|
Info |
| Article 27 | The sampling period in regard to excessively intense share price volatility or excessively irregular trade volume as prescribed in the preceding article is 30 business days prior to the date of review (inclusive) for purposes of data gathering.
The business days in the preceding paragraph are calculated in accordance with Article 121, paragraph 2.
|
Info |
| Article 28 | The scope of securities samples for excessively intense share price volatility or excessively irregular trade volume as mentioned in Article 26 is governed by Article 13 mutatis mutandis for purposes of comparison with underlying securities.
|
Info |
| Article 29 | The excessively intense share price volatility mentioned in Article 26 is deemed to occur in respect of TWSE or TPEx securities that have a circumstance as described in Article 14, paragraph 1, subparagraphs 1 and 2, or a circumstance as described in paragraph 1, subparagraph 3 of the same article when compared to the securities samples mentioned in the preceding article during the sampling period under Article 27.
Provisions of paragraphs 2 and 4 of Article 14 shall apply mutatis mutandis where sampling period and comparisons of securities samples in the preceding paragraph are excluded.
|
Info |
| Article 30 | The excessively irregular trade volume mentioned in Article 26 is deemed to occur in respect of TWSE or TPEx securities that, when compared to securities samples mentioned in Article 28 during the sampling period under Article 27, have a circumstance described in Article 15, paragraph 1, or the turnover of the securities is 10% lower than the average turnover of the securities sample during the same period and the trading volume in said period is less than 1,000 share certificates or 1,000 units.
|
Info |
| Article 31 | The excessively concentrated equity or beneficial ownership mentioned in Article 26 is deemed to occur in respect of TWSE or TPEx securities that have a circumstance under Article 16, paragraphs 1 to 3, or in respect of Taiwan depository receipts that have a circumstance under Article 17, paragraphs 1 and 2, or under Article 18, paragraphs 1 and 2, or when the TWSE or TPEx listed company, foreign issuer or SITE fails to furnish information relevant to its equity or beneficial ownership to the TWSE or TPEx within 20 days after an ordinary shareholders' meeting or fund beneficiaries meeting.
|
Info |
| Article 32 | In the event of irregularity in the redemption of Taiwan depository receipts, the TWSE may decide to reduce the margin purchase ratio by 20% and raise the margin percentage for short sale by 20% on the following business day. Where irregularities are serious, there may be multiple decreases of margin purchase ratio and increases of margin percentage for short sale.
|
|
| Article 33 | For TWSE or TPEx securities eligible for margin purchase and short sale that have met the requirements under Article 6, paragraph 3 of the Taiwan Stock Exchange Corporation Directions for Announcement or Notice of Attention to Trading Information and Dispositions, or Article 6, paragraph 3 of the Taipei Exchange Operation Directions for Announcement or Notice of Attention to Trading Information and Dispositions, the TWSE or TPEx may during the disposition period reduce the margin purchase ratio to zero and raise the margin percentage for short sale by 10% to make the minimum margin percentage for short sale after the change not lower than 100%. Where changes have been made according to Article 26 or the preceding article, the relevant margin percentage for short sale may be further raised while the margin purchase ratio remains zero. The above applies in the circumstance where changes are made according to this article after more changes are made according to Article 26 or the preceding article.
|
Info |
| Article 34 | When TWSE or TPEx securities eligible for margin purchase and short sale meet the following resumption conditions after their margin purchase ratio have been reduced by 10% and margin percentage for short sale have been raised by 10% according to Article 26, the TWSE or TPEx will resume the margin purchase ratio and margin percentage for short sale previously assigned for the securities on the following business day, except where changes were made due to excessively intense share price volatility, excessively irregular trade volume, excessively concentrated equity ownership or beneficial ownership that are occurring at the same time or one after another, in which case resumption will not happen unless the following conditions are met:
- The circumstances that cause excessively intense share price volatility have discontinued for six consecutive business days.
- The circumstances that cause excessively irregular trade volume have discontinued for six business days.
- In the event of excessively concentrated equity ownership or beneficial ownership, the TWSE or TPEx has determined that excessive concentration of equity ownership or beneficial ownership has discontinued after reviewing the information furnished by the TWSE or TPEx listed company, foreign issuer or SITE.
In the event that Article 32 applies, the TWSE will resume the margin purchase ratio and margin percentage for short sale previously assigned for the securities on the following business day after the reason for change no longer existed.
|
Info |
| Article 35 | In the event of suspension and resumption of margin purchases and short sales of securities and changes to margin purchase ratio and margin percentage for short sale in respect of TWSE or TPEx securities, the TWSE or TPEx will promptly make an announcement on the MIS. In the event of suspension of margin purchases and short sales of securities, excessively intense share price volatility, excessively irregular trade volume, excessively concentrated equity or beneficial ownership, decrease of margin purchase ratio and increase of margin percentage for short sale, the TWSE or TPEx will promptly specify the fact in the summary statement of balance of margin purchases and short sales.
|
Info |