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Article 1
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These Regulations are established pursuant to the provisions of Article 70 of the Operating Rules of the Taiwan Stock Exchange Corporation.
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Article 2
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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.
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Article 3
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Odd-lot trading orders shall be placed between 9:00 am and 1:30 pm, and between 1:40 pm and 2:30 pm after closing of the market. Such orders are valid within the above trading hours only. No odd-lot trading except after-market odd-lot trading is permitted of innovation board stocks.
Odd-lot trading orders are limited to limit orders and valid on the current day. To change a trading order, it shall be cancelled first and then a new trading order placed, except in the event of a reduction of the volume in the order.
Within the hours of odd-lot trading orders, the TWSE discloses on a real-time basis the computed execution prices and volumes, and the computed prices and volumes of the five highest unexecuted buy orders and five lowest unexecuted sell orders. In addition, the TWSE discloses, on a real-time basis during trading hours, the executed trade prices and volumes, and the prices and volumes of the five highest unexecuted buy orders and five lowest unexecuted sell orders.
Within the hours of after-market odd-lot trading orders, 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, and discloses the executed trade prices and volumes after matching.
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Article 3-1
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The brokerage trading, order confirmation and reporting of execution of odd-lot trades between a securities broker and a principal are governed by provisions on trading through electronic media, unless the principal is a professional institutional investor.
The professional institutional investor mentioned in the preceding paragraph denotes a domestic or foreign bank, insurance company, bills company, securities firm, fund management company, government investment institution, government fund, pension fund, mutual fund, unit trust, securities investment trust enterprise, securities investment consulting enterprise, trust enterprise, futures commission merchant, futures service enterprise and other institutions approved by the competent authority.
Paragraph 1 is not applicable to after-market odd-lot trading.
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Article 4
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The principal must open a central custody book-entry account before a securities broker may accept his or her trading orders.
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Article 5
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(Deleted.)
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Article 6
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(Deleted.)
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Article 7
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The daily fluctuation in odd-lot trading is governed by Article 63 of the Operating Rules of the Taiwan Stock Exchange Corporation.
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Article 8
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Matching of odd-lot trades will proceed by call auction every minute from 9:10 am, except securities for which extended matching intervals have been implemented under the bylaws or rules of the TWSE.
In principle, odd-lot trades are matched based on price priority and time priority, and the priority for satisfying trading orders is governed by the following principles:
- Price priority principle: higher-priced buy orders shall have priority over lower-priced buy orders. Lower-priced sell orders shall have priority over higher-priced sell orders. Where orders are placed at the same price, priority shall be based on time priority principle.
- Time priority principle: For orders placed prior to the first matched trade, priority shall be determined randomly based on computer arrangement. For orders placed after the first matched trade, priority shall be made on the order in which the orders were placed.
At the end of the time for placing after-market odd-lot trading orders, the trades will be matched by call 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. t.
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Article 8-1
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If, during a certain period from the first matching of an odd-lot trade to the deadline for placing odd-lot trading orders, any given computed execution price fluctuates beyond 3.5 percent from the previous execution price prior to each match, the TWSE will immediately postpone the current match for two minutes and continue to accept entries, cancellations, and changes of trading orders for that security until the end of the postponement, and then proceed with matching and execution sequentially. However, this does not apply to securities that are newly listed common stocks during the period when no price fluctuation limit is imposed and securities for which the opening auction reference price is lower than NT$1.
The preceding paragraph is not applicable to after-market odd-lot trading.
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Article 9
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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.
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Article 10
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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.
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Article 11
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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.
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Article 12
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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.
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Article 13
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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.
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