Chapter I General Principles
|
| Article 1 | These Regulations are specially adopted pursuant to Article 10, paragraph 2 of the Operating Rules of the Taiwan Stock Exchange Corporation, for purposes of effectively administering the use of trading information and promoting openness of trading information. |
| Article 2 | Matters not provided for herein shall be governed by other applicable acts and regulations and the applicable bylaws, circulars, and public announcements of the Taiwan Stock Exchange Corporation ("the TSEC"). |
| Article 3 | Terms used herein are defined as follows:
1. "Competent authority" means the Financial Supervisory Commission, Executive Yuan.
2. "User applicant" means any securities firm, futures commission merchant, telecommunications business, information company, news media institution, cable television operator, satellite radio and television enterprise, or Internet firm applying to use trading information pursuant to these Regulations, or any other enterprise applying with the consent of the TSEC.
3. "Trading information" means any information developed or transmitted by the TSEC relating to the centralized securities exchange market, and any derivative information thereof.
4. "Electronic display" means a single display screen on which technical charts or indexed search results with respect to securities trading information can be displayed at one's option.
5. "Television wall" means a combination of television screens used to display securities market price information in whole or in part.
6. "Real-time information and delayed information" mean, respectively, trading information transmitted during market trading hours and trading information transmitted with delays of 20 minutes or more relative to real-time information.
7. "After-market information" means information on a given day's trading transmitted after trading hours the same day.
8. "Direct connection and indirect connection" mean, respectively, direct connection to the TSEC's computer systems by a user applicant to obtain trading information, and connection by a user applicant through another user applicant to obtain trading information indirectly.
9. "Subscriber" means any person who receives the trading information relayed by a user applicant. |
| Article 4 | With the exception of the places of business of securities firms, the following facilities, equipment, and activities are not allowed in any place where the trading information of the TSEC will be used:
1. Electric display panels or ticker-style displays for securities trading information.
2. Terminals used for bidding.
3. Signing of trading consignment contracts, accepting consignments for securities trading, or settlement of securities trades.
4. Engaging in business activities similar to those of securities firms. |
| Article 5 | The trading information and software and hardware provided by the TSEC are the property of the TSEC. Where the trading information, software, or hardware provided by the TSEC is the subject of copyright, trademark, or patent under the law, then those rights and other related interests belong to the TSEC. Upon discovery of plagiarism, unauthorized use, or any other unlawful use of the information, the TSEC may duly initiate legal action and claim damages in accordance with law. |
| Article 6 | (deleted) |
Chapter II Application for Use
|
| Article 7 | Prior to application for direct connections and transmission of information, connection tests must be successfully completed by the TSEC. System connections with the TSEC's trading information system shall not affect the TSEC's operation of the centralized securities market. The TSEC may place restrictions on the filing of applications as deemed necessary.
A user applicant shall specify in the application the equipment type or model, quantity, and place where the equipment will be installed. Installation may take place only upon approval from the TSEC, and a user applicant may neither relocate nor install additional equipment without the approval of the TSEC.
Applicant users wishing to switch to an indirect connection, or make any subsequent change in connections, shall first report to the TSEC for approval. |
| Article 8 | Each of the information companies and telecommunication enterprises applying for the use of the Trading Information shall meet the following conditions:
1. Qualifications:
(1) A license issued by the competent authority with jurisdiction over telecommunications enterprises.
(2) The capability to independently develop and maintain software, or having engaged persons with such competencies.
(3) A head office with a monitoring center that has control capability and software and hardware engineers.
(4) An operating fund maintained at a level sufficient to support one full year of operation.
(5) No violation of these Regulations within the most recent two years that resulted in termination of contract.
2. Required documents:
(1) A letter of application;
(2) A photocopy of the responsible person or representative's identity card;
(3) A photocopy of the company registration documents, or for a foundation, a photocopy of its registration certificate;
(4) A photocopy of the permit license or approval letter issued by the competent authority with jurisdiction over telecommunications enterprises;
(5) The financial report for the most recent year audited and attested by a certified public accountant.
(6) A combined credit report on the enterprise and its responsible person issued by the Joint Credit Information Center.
(7) A register of the directors, supervisors, managers, and shareholders that hold more than 10 percent of the total shares of the company.
Qualifications for user applicants whose principal business is not the provision of trading information may be separately prescribed by the TSEC, based on actual need and the principle of avoiding the creation of inappropriate entry barriers for enterprises or prejudice to the principle of free competition in the market. |
| Article 9 | Foreign information companies, news media institutions and Qualified Foreign Institutional Investors (QFIIs) applying to use the trading information shall submit the following materials:
1. A letter of application.
2. The original of its certificate of incorporation and statement of its scope of business.
Foreign information companies, news media institutions and QFIIs applying to obtain trading information through indirect connection shall additionally submit the original document evidencing that it will receive trading information through an indirect connection. |
| Article 10 | Where securities firms or futures commission merchants apply for use of trading information, the relevant provisions governing the establishment of securities firms and futures commission merchants shall apply. |
| Article 11 | Where cable radio and television enterprises or satellite radio and television enterprises broadcast trading information relayed by other user applicants through a broadcast channel, a letter of application shall be submitted along with the following documents:
1. For cable radio and television and direct satellite radio and television broadcast system operators:
(1) A photocopy of its responsible person or representative's identity card;
(2) A photocopy of the company registration documents, or for a foundation, a photocopy of its registration certificate;
(3) A photocopy of its cable radio and television enterprise or satellite radio and television enterprise permit license;
(4) Documents evidencing the source of the trading information.
2. For a cable transmission system:
(1) A photocopy of the responsible person's identity card;
(2) A photocopy of its cable broadcasting system registration certificate;
(3) Documents evidencing the source of trading information. |
Chapter III Restrictions on Use
|
| Article 12 | A user applicant shall give due consideration to the accuracy of any trading information that it has independently processed for added value, and shall bear legal liability for any errors in its content.
Where trading information has been processed by a user applicant pursuant to the preceding paragraph, the page display shall conspicuously indicate the user applicant's name or a service mark identifying the user applicant, along with related footnotes; the user applicant shall bear legal liability for the page content.
When transmitting or broadcasting trading information, a user applicant shall have adequate software and hardware technology to prevent unauthorized use or plagiarism of the information, or connection to other systems. |
| Article 13 | A user applicant shall retain for ready inspection by the TSEC the trading information it has transmitted or broadcast on any given day for a period of at least three days thereafter.
When a user applicant simultaneously broadcasts news information, it shall specifically indicate the source and basis of such information and shall bear all legal liability for any false or untrue content therein.
When a user applicant discovers any error in trading information transmitted or broadcast, or in news content being simultaneously broadcast, it shall on its own initiative immediately notify the TSEC and simultaneously issue a correction to the public. |
| Article 14 | Except where otherwise approved by the TSEC, a user applicant shall not lease, sell, or transfer the TSEC's trading information to any other person, nor relay the information in any manner to any other place.
Transmission standards for any transmission by user applicants not made over leased data lines or dial-up lines shall be separately prescribed by the TSEC.
User applicants shall not use any trading information other than that provided pursuant to the contract for use of trading information entered into with the TSEC.
Securities firms and futures commission merchants shall not have the TSEC's trading information relayed to any place other than their business premises.
Trading information provided by a web site operated by a securities firm shall be made in the name of a user applicant that has been approved by the TSEC for transmitting trading information through the Internet. Notwithstanding the above, however, a securities firm may, with the permission of the TSEC, provide trading information under its own name to the investors who have accounts with it. |
| Article 15 | Cable radio and television operators and satellite radio and television enterprises, after applying for approval from the TSEC in accordance with the provisions of Article 8, may connect their systems directly with the TSEC's system in order to transmit trading information or to broadcast trading information produced and supplied by other operators.
Cable radio and television operators and satellite radio and television enterprises that have applied for use of trading information pursuant to the provisions of Article 11 may only broadcast trading information relayed by other user applicants approved by the TSEC.
Cable radio and television operators and satellite radio and television enterprises may only transmit trading information in the form of sound, images, and page displays, and may not, without the consent of the TSEC, provide trading information processed for added value to cable television subscribers.
A channel provider may provide no more than four channels to any system operator for broadcasting; restrictions may be imposed on the content or particulars of the programs as deemed necessary by the TSEC. |
| Article 16 | Given any of the following circumstances, a user applicant shall report to the TSEC:
1. Any change of its representative, responsible person, contact person, agent, business address, telephone or fax number;
2. Any change of the responsible person, address or contact telephone number for its equipment room; or
3. Any instance where a bank has dishonored a check or refused a transaction of the company or its responsible person, or any other loss of creditworthiness.
4. Any instance of a material adverse effect on the finances or operations of the company due to litigation, non-litigation, administrative disposition, administrative litigation, or the application for or execution of provisional attachment or provisional injunction involving the company or its responsible person.
5. Other matters requiring report under the regulations of the TSEC. |
| Article 17 | User applicants shall prepare and submit to the TSEC lists of the equipment to be used or of the channels through which trading information will be broadcast; any additions or changes to such information shall be reported to the TSEC not later than the fifth day of each month.
User applicants which transmit the trading information in the designated manner and have established files for the administration of their subscribers may be exempted from preparing and filing with the TSEC the list of information equipment in use as required by the provisions of Article 24, paragraph 2 of the these Regulations, and may further be exempted from submitting to the TSEC not later than the fifth day of each month the reports on new subscribers or changes in the subscriber list, provided that such user applicants shall make their subscriber administration files available at their head offices for audit by the TSEC. |
| Article 18 | In order to administer the transmission and use of the trading information, the TSEC may appoint a representative or a certified public accountant to examine and audit the finances or operations and accounting books and records of a user applicant that are related to trading information. When deemed necessary, the TSEC may inspect the sites where the equipment is used and the status of its use; user applicants may not evade or refuse such inspections. When further understanding of a user applicant's revenue status is required due to a change in the method of calculating fees, the TSEC may consult the auditing reports issued by the user applicant's certified public accountant.
Where a user applicant calculates fees for the use of trading information based on the quantity of equipment or indexing time, the fees shall be listed independently on its accounting books with appropriate annotations.
Two duplicates of the user applicant's annual financial report duly audited and attested by a certified public accountant shall be submitted to the TSEC not later than June 30 of each year. |
| Article 19 | A user applicant shall enter into a written contract with each subscriber and place the originals of such contracts at its head office or the place of business of its Taiwan agent to facilitate inspection and audit by the TSEC.
One copy of the contract referred to in the preceding paragraph shall be submitted to the TSEC for reference. The contract shall stipulate that the subscriber will comply with these Regulations, as well as the sanctions and civil and criminal liability to be borne by the subscriber for unlawfully accessing or relaying the trading information.
When a user applicant is required by the TSEC to make a joint inspection of a subscriber's usage site, the user applicant shall make its best efforts in cooperating and shall not intentionally evade or refuse such inspection. |
Chapter IV Equipment Rooms
|
| Article 20 | A user applicant maintaining equipment rooms to transmit or broadcast trading information shall first obtain approval from the TSEC; the same shall be true for any relocation or dismantling of same. |
| Article 21 | The following information shall be submitted by user applicants applying to set up an equipment room for relaying trading information:
1. A photocopy of the certificate of title, lease agreement or loan agreement for the premises where the equipment room is located;
2. The original of the equipment room layout plans (including a floor plan and an elevation view drawing);
3. The original of the register of liaison personnel and technical personnel assigned to the equipment room.
When a user applicant sets up an equipment room through a telecommunications enterprise by means of co-hosting or leasing of space in its equipment room, it shall submit a report with photocopies of related documents to the TSEC for recordation prior to any use. |
| Article 22 | A user applicant shall make available in each equipment room a list of equipment used there or of channels through which trading information is broadcast, and shall mark the names of the subscribers and line numbers on the equipment and transmission lines.
In order to facilitate inspection by the TSEC, transmission or broadcasting equipment installed in equipment rooms shall be conspicuously marked and segregated from equipment not used for transmitting or broadcasting trading information. |
| Article 23 | Personnel assigned by a user applicant to work in an equipment room shall cooperate with the TSEC's inspectors, and may not refuse or evade inspections. |
Chapter V Administration of Subscribers
|
| Article 24 | When a user applicant signs a contract with a subscriber for use of trading information, it shall set out in the contract the subscriber's name, national identification number (or the company's uniform invoice number), contact address, telephone number, and usage site location, and shall inspect the following materials:
1. For subscribers applying under the name of a natural person: the applicant's identification documents.
2. For subscribers applying under the name of a juristic person: the applicant's original certificate of incorporation.
3. For subscribers applying under the name of a securities- or futures-related enterprise: a photocopy of evidentiary documents issued by the competent authority.
Applicant users shall set out subscribers' names, the type and quantity of the equipment used, and the usage site in the list of equipment reported to the TSEC prior to any use of the equipment. The equipment may not be relocated or augmented except with the prior consent of the TSEC.
The list referred to in the preceding paragraph shall also indicate any equipment that is portable and does not require permanent installation. |
| Article 25 | A user applicant may install a combined total of no more than six sets of information equipment for any single subscriber or at any single usage site, provided that news media organizations, or others reviewed and approved by the TSEC or granted authorization by the competent authority, shall not be subject to this restriction. |
| Article 26 | Subscribers shall not be entitled to compensation when normal operation is prevented by an interruption in transmission or an equipment failure in the trading information equipment provided by the TSEC.
Applicant users shall not be entitled to compensation if they are unable to use the trading information when, pursuant to these Regulations, the TSEC terminates the contract for use of trading information. |
| Article 27 | Subscribers may not lease, sell, or transfer the TSEC's trading information to any other person, nor relay the information in any manner to another place.
The TSEC may dispatch personnel to inspect the use of trading information by any subscriber. A subscriber being inspected shall appear at the site and may not evade or refuse such inspection. |
Chapter VI Fee Standards
|
| Article 28 | A user applicant applying for use of trading information shall pay fees and royalties in accordance with the fee standards prescribed by the TSEC. |
| Article 29 | A user applicant providing after-market information to its subscribers may be exempt from payment of fees upon obtaining approval from the TSEC.
Supplemental regulations governing application by user applicants for use of delayed information and real-time stock price index information shall be separately adopted. |
Chapter VII Handling of Violations
|
| Article 30 | Under any of the following circumstances, the TSEC may notify a user applicant to make improvement or correction within a given period, and may additionally impose a penalty for breach in the amount of NT$20,000:
1. Violation of the provisions of Article 16, Article 17, Article 18, paragraphs 2 and 3, Article 22, Article 24, paragraphs 2 and 3, or 25 of these Regulations; or
2. Violation of the requirements set forth in any circular or public announcement of the TSEC, or in any letter or order of the Competent Authority.
Where the negligence of a user applicant results in any error in the content of the trading information in violation of Article 12, paragraph 1 of these Regulations, the TSEC may notify the user applicant to make improvement or correction within a given period; where a total of six errors has been found in any six-month period, the TSEC may additionally impose a penalty for breach in the amount of NT$20,000. |
| Article 31 | Where a user applicant has delayed payment of fees or royalties for a period of one month or longer, the TSEC shall be entitled to levy a penalty for delay in an amount equal to one percent of the payment in arrears, and to notify the user applicant to make payment within a given period of time.
When a user applicant neglects to pay or understates the amount of fees or royalties , then in addition to payment of the deficit amount by the user applicant, the TSEC may impose a penalty in an amount not to exceed four times the amount of the deficit.
When a user applicant, on its own and without the permission of the TSEC, augments or alters the method of transmission or the scope of the trading information, the TSEC may notify it to make improvement or correction within a given period, and apply the provisions of paragraph 2 mutatis mutandis. |
| Article 32 | Given any of the following circumstances, the TSEC may notify a user applicant to make improvement or correction within a given period, and may additionally impose a penalty for breach in the amount of NT$50,000:
1. Violation of the provisions of Article 7, paragraph 2, Article 12, paragraphs 2 or 3, Article 14, paragraph 3, or Article 19, paragraphs 1 or 2 of these Regulations;
2. Violation of the provisions of Article 12, paragraph 1 of these Regulations a total of three times in one month because of errors in the content of the trading information due to negligence;
3. Failure to improve or correct the default within the period prescribed by the TSEC pursuant to the provisions of Article 30;
4. Serious violation of the requirements set forth in any circular letter or public announcement of the TSEC, or any letter or order of the competent authority.
A user applicant that has violated the provisions of Article 12, paragraph 3 herein may be exempt from the penalty for breach if able to prove that it exercised due care before the occurrence of the event and took necessary legal action afterwards against unlawful use or interception of the trading information. |
| Article 33 | Under any of the following circumstances, the TSEC may notify a user applicant to make improvement or correction within a given period, and may additionally impose a penalty for breach in the amount of NT$100,000:
1. Where deliberately or through gross negligence, the applicant user causes an error in the trading information transmitted, in violation of Article 12, paragraph 1.
2. Violation of Article 7, paragraph 3, Article 13, or Article 15. |
| Article 34 | Given a serious violation of Article 4, Article 14, paragraphs 1, 4, or 5, Article 20, or Article 13, the TSEC may notify the user applicant to make improvement or correction within a given period, and may additionally impose a fine for breach in the amount of NT$200,000. |
| Article 35 | Given any of the following circumstances, the TSEC may impose on a user applicant a fine for breach in the amount of NT$500,000, or terminate the contract:
1. Unlawful conduct arising out of intentional acts or gross negligence, resulting in an error in the trading information transmitted, in violation of Article 12, paragraph 1, and materially influencing trading order in the securities market.
2. Violation of Article 12, paragraph 3 five times or more within a single year.
3. Serious violation of Article 14, paragraphs 1, 4, or 5.
4. Failure to pay fees or royalties or penalty for breach of agreement, followed by failure to make payment more than two months after having received notification from the TSEC to make payment within a given period.
5. Violation of securities-related acts or regulations or the provisions of the TSEC, with a material adverse impact on the securities market or the administration of trading information by the TSEC. |
| Article 36 | Given a user applicant's violation of Article 18, paragraph 1, Article 19, paragraph 3, or Article 23, refusal or evasion of inspection by personnel appointed by the TSEC, and continued failure to cooperate after reinvestigation by the TSEC or notification to provide an explanation or to provide account books or documentation of finances or operations, the TSEC may suspend the user applicant's use of trading information for a period of three to seven business days.
Given continued failure to cooperate with inspection by a user applicant following the TSEC's suspension of its use of the trading information for a period of seven days pursuant to the preceding paragraph, the TSEC may terminate the contract for use of trading information. |
| Article 37 | Given violation of these Regulations by a subscriber, or where such violation results in material adverse impact on the securities market or on the administration of trading information by the TSEC, the TSEC may notify the given user applicant to suspend transmitting trading information to the said subscriber, or notify the subscriber to make improvement or correction.
A subscriber whose access to trading information has been suspended may not apply to receive transmission of trading information for a period of one year thereafter. |
Chapter VIII Supplementary provisions |
| Article 38 | These Regulations, and any amendments hereto, shall be implemented upon ratification by the competent authority. |