| Title： |
Taiwan Stock Exchange Corporation Rules Governing Implementation of the Stock Market Surveillance System(2004.01.09) |
| Date： |
|
|
Article 1
|
These RegulationsRules are promulgated prescribed pursuant to Article 22 of the Rules Regulations Governing Stock Exchanges and Articles 9-1, 28-2, and Paragraph 3 of Article 143, paragraph 3 of the Operating Rules of the Taiwan Stock Exchange Corporation (the "Operating Rules").
|
|
Article 2
|
The Exchange shall establish a dedicated unit to administer these RegulationsRules. A Surveillance Operations Oversight Committee (hereinafter "Committee") shall also be formed by the executive officers of the following Units:
1. Listing Department
2. Trading Department
3. Audit Department
4. Computer Planning Department
5. Information Services Department
6. Market Surveillance Department
7. Other designated units or personnel
The Committee is charged with the drafting and planning of the surveillance system and coordination with the relevant Units. The Committee shall also appoint a Senior Executive Vice President responsible for overseeing surveillance operations and convening the Committee. One executive secretary shall be duly appointed under the Senior Executive Vice President.
|
|
Article 3
|
Should the Exchange discover that abnormal trading in securities has reached a certain level in the centralized securities exchange market (the "Market") established by the Exchange, the Exchange may publicly announce the names of the securities and trading information to the market to alert investors.
|
|
Article 4
|
When abnormal trading as specified in the preceding Article is likely to seriously affect market trading, the Exchange shall make a public announcement to the Market and may take the measures listed below:
1. Conduct trade matching for the securities with manually controlled trade matching terminals.
2. Restrict the amount of the securities that securities firms can buy and sell.
3. Instruct securities brokers to precollect buy-side payment or sell-side securities up to a certain percentage from those who place large numbers of orders with securities brokers for securities that are being traded abnormally.
The Exchange shall draft guidelines for the standards, manner, and duration of the measures in the preceding paragraph as well as the standards for abnormal trading and manner of public announcement in Article 3. These guidelines shall take effect after having been reported to the competent authority and approved for recordancetion.
When it is deemed that abnormal trading of securities has occurred and has affected the security of market settlement, the measures listed in Paragraphparagraph 1 or other measures adopted by the resolution of the Surveillance Operations Oversight Committee may prevail.
|
|
Article 5
|
When the Exchange discovers abnormal quoting or trading of securities, the Exchange may, either before market opening or during trading, request the attention of the entrusted securities firm and may, pursuant to Paragraph 2 Article 22, paragraph 2 of the Rules Regulations Governing Stock Exchanges, query or review relevant information from securities firms and listed companies, or require them to provide information explaining such trading. When necessary, the Exchange may publicly announce this information and explanation through information systems or at the places of business of securities firms.
In the event of abnormal trading of securities as referred to in the preceding paragraph, the Exchange's Special Management Committee of the Joint Responsibility System Clearing and Settlement Fund may be informed if necessary.
|
|
Article 6
|
If a securities firms violates these RegulationsRules or, when orders to buy or sell abnormally traded securities are placed, fails to take the necessary steps to comply with account opening procedures, creditworthiness assessment procedures, investment review performance procedures, and order-entrustment operations brokering procedures, the Exchange may, subject to the seriousness of the violations, instruct the securities firm to make improvement, warn the securities firm, and restrict or halt buying and selling by the securities firm under Articles 135, 136, and 141 of the Operating Rules.
|
|
Article 7
|
The Exchange shall investigate and pursue all forms of abnormal trading and establish a complete file of relevant information for purposes of verification. The Exchange shall also report those, if any, suspected of violating laws and administrative orders or submit an investigative report of such violations to the competent authority.
|
|
Article 8
|
The Exchange shall publicly announce market rumors or false media reports through information systems or in the places of business of securities firms after having investigated and confirmed the existence of such rumors or reports.
|
|
Article 9
|
These regulationsRules shall be promulgated and take effect after having been reported to the competent authority for its approval.
|