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Detailed Numerical Standards and Exceptions to the Irregularity Standards in Article 4 of the Taiwan Stock Exchange Corporation's Directions for Announcement or Notice of Attention to Trading Information and Related Dispositions(2009.03.20) |
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1. An irregularity in the cumulative percentage of increase or decrease in the closing price of a security during the preceding period is defined as follows:
The cumulative percentage of increase or decrease in the closing price of a security for the preceding six business days (inclusive of the sixth) is greater than 32%, while differing with the average values for both the market as a whole and for same-sector stocks, as calculated in accordance with this subparagraph, by 20% or more.
Exceptions:
(1) The percentages of increase or decrease in the closing prices of newly-listed common stocks for which there is a period of no restrictions on price fluctuations shall not be included in the calculations of numerical standards under this paragraph.
(2) The standards of this paragraph shall not apply to government bonds, ordinary corporate bonds, and foreign-issued bonds.
(3) When non trade-related factors (such as ex-rights or ex-dividend factors) have caused fluctuations in the price of a security during the period for which standards under this paragraph are calculated, those factors shall be excluded when calculating the percentage of increase or decrease in the closing price.
(4) The standards of this paragraph shall not apply when the closing price of a stock is less than NT$5.
(5) The provisions of this paragraph regarding same-sector stocks shall not apply when there are fewer than ten stocks in a given sector.
(6) The provisions of this paragraph regarding same-sector stocks shall not apply when a stock has a negative price-to-earnings ratio or is trading at 80 times earnings or above.
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2. An irregularity in the percentage of increase or decrease in the closing price of a security between the initial and final business days of the preceding period is defined as follows:
When for a particular security, any of the following occur on a given day:
(1) The percentage of increase or decrease in the closing price of a security between the initial and final days of the preceding period of 30 business days (inclusive of the given day) exceeds 100%, while meeting one of the two following conditions:
(i) The percentage of increase for the given security differs with the average values for both the market as a whole and for same-sector stocks by 85% or more, as calculated in accordance with this subparagraph, while the closing price for the day is also above the opening reference price.
(ii) The percentage of decrease for the given security differs with the average values for both the market as a whole and for same-sector stocks by 85% or more, as calculated in accordance with this subparagraph, while the closing price for the day is also below the opening reference price.
(2) When the percentage of increase or decrease in the closing price of a security between the initial and final days of the preceding period of 60 business days (inclusive of the given day) exceeds 130%, while conforming to one of the two following conditions:
(i) The percentage of increase for the given security differs with the average values for both the market as a whole and for same-sector stocks, as calculated in accordance with this subparagraph, by 110% or more, while the closing price for the day is also above the opening reference price.
(ii) The percentage of decrease for the given security differs with the average values for both the market as a whole and for same-sector stocks, as calculated in accordance with this subparagraph, by 110% or more, while the closing price for the day is also below the opening reference price.
(3) When the percentage of increase or decrease in the closing price of a security between the initial and final days of the preceding period of 90 business days (inclusive of the given day) exceeds 160%, while meeting one of the two following conditions:
(i) The percentage of increase for the given security differs with the average values for both the market as a whole and for same-sector stocks, as calculated in accordance with this subparagraph, by 135% or more, while the closing price for the day is also above the opening reference price.
(ii) The percentage of decrease for the given security differs with the average values for both the market as a whole and for same-sector stocks, as calculated in accordance with this subparagraph, by 135% or more, while the closing price for the day is also below the opening reference price.
Exceptions:
(1) The percentages of increase or decrease in the closing prices of newly-listed common stocks for which there is a period of no restrictions on price fluctuations shall not be included in the calculations for the standards of this paragraph.
(2) The standards of this paragraph shall not apply to government bonds, ordinary corporate bonds, foreign-issued bonds, and call (put) warrants.
(3) The standards of this paragraph shall not apply when trading information for the given security has been announced pursuant to Point 4, paragraph 1, subparagraph 1 during the preceding 30 business days (inclusive of the given day), while the cumulative percentage of increase or decrease in the closing price for the preceding six business days (inclusive of the given day) meets any of the following conditions:
(i) The cumulative percentage is below 25%.
(ii) The cumulative percentage is above 25%, while differing with the average cumulative values of both the market as a whole and of same-sector stocks for the preceding six business days (inclusive of the given day) by 20% or more.
(iii) The direction of movement of the particular security is opposite that of the standard increase or decrease under this paragraph.
(4) When fluctuations in the price of a security occur during the period of calculation for the standards under this paragraph due to non trade-related factors (ex-rights or ex-dividend factors), those factors shall be excluded when calculating the percentage of increase or decrease in the closing price.
(5) The provisions of this paragraph regarding same-sector stocks shall not apply when there are fewer than ten stocks in a given sector.
(6) The provisions of this paragraph regarding same-sector stocks shall not apply when a stock has a negative price-to-earnings ratio or is trading at 80 times earnings or above.
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3. An irregularity in the cumulative percentage of increase or decrease in the closing price of a security for the preceding period, combined with an irregular increase in the volume of trade for the given day relative to the daily average for the preceding period, is defined as follows:
When the particular security meets both of the following conditions on the given day:
(1) The cumulative percentage of increase or decrease in the closing price of a security for the preceding six business days (inclusive of the given day) is greater than 25%, and differs with the average values for both the market as a whole and for same-sector stocks, as calculated in accordance with this subparagraph, by 20% or more.
(2) The volume of trade in the security on a given day shows an increase of five times or more over the daily average for the preceding 60 business days (inclusive of the given day), and the increase differs with the average value for the market as a whole, as calculated in accordance with this subparagraph, by a factor of four or more.
Exceptions:
(1) The percentages of increase or decrease in the closing prices and the daily transaction volumes of newly-listed common stocks for which there is a period of no restrictions on price fluctuations shall not be included in calculation of the standards under this paragraph.
(2) The standards under this paragraph shall not apply to government bonds, ordinary corporate bonds, convertible corporate bonds, corporate bonds with warrants, preferred stocks with warrants, foreign-issued bonds, bond conversion entitlement certificates, depository receipts, and call (put) warrants.
(3) When fluctuations in the price of a security occur during the period of calculation for the standards under this paragraph due to non trade-related factors (ex-rights or ex-dividend factors), those factors shall be excluded when calculating the percentage of increase or decrease in the closing price.
(4) The standards under this paragraph shall not apply when intraday turnover is less than 0.1%, or when trading volume remains below 500 trading units.
(5) The provisions of this paragraph regarding same-sector stocks shall not apply when there are fewer than ten stocks in a given sector.
(6) The provisions of this paragraph regarding same-sector stocks shall not apply when a stock has a negative price-to-earnings ratio or is trading at 80 times earnings or above.
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4. An irregularity in the cumulative percentage of increase or decrease in the closing price of a security for the preceding period, combined with an unusually high intraday turnover rate, is defined as follows:
When the particular security meets both of the following conditions on the given day:
(1) Where the cumulative percentage of increase or decrease in the closing price of a security for the preceding six business days (inclusive of the sixth) is greater than 25%, and differs with the average values for both the market as a whole and for same-sector stocks, as calculated in accordance with this subparagraph, by 20% or more.
(2) The intraday turnover rate for the given security is 10% or greater, and is greater than the average value for the market as a whole, as calculated in accordance with this subparagraph, by 5% or more.
Exceptions:
(1) The percentages of increase or decrease in the closing prices of newly-listed common stocks for which there is a period of no restrictions on price fluctuations shall not be included in the calculation of standards under this paragraph.
(2) The standards of this paragraph shall not apply to government bonds, ordinary corporate bonds, convertible corporate bonds, corporate bonds with warrants, preferred stocks with warrants, foreign-issued bonds, bond conversion entitlement certificates, depository receipts, and call (put) warrants.
(3) When fluctuations in the price of a security occur during the period of calculation for these standards due to non trade-related factors (ex-rights or ex-dividend factors), those factors shall be excluded when calculating the percentage of increase or decrease in the closing price.
(4) The provisions of this paragraph regarding same-sector stocks shall not apply when there are fewer than ten stocks in the given sector.
(5) The provisions of this paragraph regarding same-sector stocks shall not apply when a stock has a negative price-to-earnings ratio or is trading at 80 times earnings or above.
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5. An irregularity in the cumulative percentage of increase or decrease in the closing price for the particular security in the preceding period, combined with intraday trading of the given security at the given securities firm in which confirmed purchases or sales that account for an unusually high percentage of the intraday volume of trade in the given security, is defined as follows:
When the particular security meets both of the following conditions on the given day:
(1) The cumulative percentage of increase or decrease in the closing price of a security for the preceding six business days (inclusive of the sixth) is greater than 25%, and differs with the average values for both the market as a whole and for same-sector stocks, as calculated in accordance with this subparagraph, by 20% or more.
(2) The volume of confirmed purchases or sales in intraday trading of the given security at a securities firm accounts for more than 25% of the total volume of confirmed transactions in the given security (for securities firms with branch offices, each branch office may be allowed an extra 1% volume, providing that the aggregate total for branch offices may not exceed 35%), while also reaching a volume of 500 trading units or more.
Exceptions:
(1) The percentages of increase or decrease in the closing prices of newly-listed common stocks for which there is a period of no restrictions on price fluctuations shall not be included in the calculations for the standards under this paragraph.
(2) The standards under this paragraph shall not apply to government bonds, ordinary corporate bonds, convertible corporate bonds, corporate bonds with warrants, preferred stocks with warrants, foreign-issued bonds, and bond conversion entitlement certificates.
(3) When fluctuations in the price of a security occur during the period for which standards are calculated due to non trade-related factors (such as ex-rights or ex-dividend factors), those factors shall be excluded when calculating the percentage of increase or decrease in the closing price.
(4) The provisions of this paragraph regarding same-sector stocks shall not apply when there are fewer than ten stocks in the given sector.
(5) The provisions of this paragraph regarding same-sector stocks shall not apply when a stock has a negative price-to-earnings ratio or is trading at 80 times earnings or above.
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6. A significant increase in the daily volume of trading for a given day or the preceding several days relative to the daily average volume of trade for the preceding period is defined as follows:
When the particular security meets both of the following conditions on the given day:
(1) The daily average volume of trade for the preceding six business days (inclusive of the given day) is greater by five times or more than the daily average volume of trade for the preceding 60 business days (inclusive of the given day), while the increase is greater than the average value for the market as a whole, as calculated in accordance with this subparagraph, by a factor of four times or more.
(2) The volume of trade for the given day is greater by five times or more than the average daily volume of trade for the preceding 60 business days (inclusive of the given day), while the increase is greater than the average value for the market as a whole, as calculated in accordance with this subparagraph, by a factor of four times or more.
Exceptions:
(1) The daily transaction volumes of newly-listed common stocks for which there is a period of no restrictions on price fluctuations shall not be included in the calculations for these standards.
(2) These standards shall not apply to government bonds, ordinary corporate bonds, convertible corporate bonds, corporate bonds with warrants, preferred stocks with warrants, foreign-issued bonds, bond conversion entitlement certificates, depository receipts, and call (put) warrants.
(3) These standards shall not apply when during the preceding six business days (inclusive of the given day), trading information for the given security has been announced pursuant to Point 4, paragraph 1, subparagraph 3.
(4) The standards under this paragraph shall not apply when intraday turnover is less than 0.1%, or when trading volume remains below 500 trading units.
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7. A significantly high cumulative turnover rate for the preceding period is defined as follows:
When the particular security meets both of the following conditions on the given day:
(1) The cumulative total turnover rate for the preceding six business days (inclusive of the sixth) exceeds 50%, while there is a difference of 40% or more between the cumulative total turnover rate and the average value for the market as a whole, as calculated in accordance with this subparagraph.
(2) The intraday turnover rate is 10% or more, while there is a difference of 5% or more between the turnover rate and the average value for the market as a whole, as calculated in accordance with this subparagraph.
Exceptions:
(1) The daily turnover rate of newly-listed common stocks for which there is a period of no restrictions on price fluctuations shall not be included in the calculations for the standards under this paragraph.
(2) These standards under this paragraph shall not apply to government bonds, ordinary corporate bonds, convertible corporate bonds, corporate bonds with warrants, preferred stocks with warrants, foreign-issued bonds, bond conversion entitlement certificates, depository receipts, and call (put) warrants.
(3) The standards under this paragraph shall not apply when during the preceding six business days (inclusive of the sixth day), trading information for the given security has been announced pursuant to Point 4, paragraph 1, subparagraph 4.
(4) The standards under this paragraph shall not apply where the monetary value of confirmed transactions in the given security on the given day is less that NT$500 million.
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8. An irregular price-to-earnings rate, price-to-book ratio, and unusually high intraday turnover, combined with any one of three circumstances: a relatively high price-to-book ratio for stocks of the given industry, an intraday value for confirmed purchases or sales of the given security at any single securities firm that accounts for an unusually high proportion of the total intraday value of confirmed trades in the given security, or an intraday value for confirmed purchases or sales of the given security by any single investor that accounts for an unusually high proportion of the total intraday value of confirmed trades in the given security, is defined as follows:
When the particular security meets each of the following conditions on the given day:
(1) The security has a negative price-to-earnings ratio or is trading at 80 times earnings or higher, while exceeding the weighted average value for the price-to-earnings ratios of all units issued in the market as a whole on the given day by two times or more.
(2) The security has a price-to-book ratio of 8.0 or more, while exceeding the weighted average value for the price-to-book ratios of all units issued in the market as a whole on the given day by a factor of two or more.
(3) The intraday turnover rate is 5% or higher, with a volume of trade of 3,000 trading units or more.(4) The security meets any one of the following three conditions:
(i) The price-to-book ratio is greater than the average value of price-to-book ratios of all same-sector securities, weighted by units issued as of the given day, by four times or more.
(ii) The monetary value of confirmed purchases or sales of the given security (including orders accepted and trading done on the firm's own accounts) at a securities firm (including head and branch offices) on the given day account for 10% or more of the total monetary value of confirmed trades in the given security, while also reaching NT$100 million or more.
(iii) The monetary value of confirmed purchases or sales of the given security by any single investor on the given day accounts for 10% or more of the total monetary value of confirmed trades in the given security on the given day, while also reaching NT$100 million or more.
Exceptions:
(1) The transaction prices of newly-listed common stocks for which there is a period of no restrictions on price fluctuations shall not be included in calculation of the standards under this paragraph.
(2) The standards under this paragraph shall not apply to government bonds, ordinary corporate bonds, convertible corporate bonds, corporate bonds with warrants, preferred stocks with warrants, foreign-issued bonds, preferred stocks, bond conversion entitlement certificates, beneficiary certificates, depository receipts, and call (put) warrants.
(3) For trades of a security made under the TSEC's Regulations Governing Bulk-lot Trades, the transaction amount shall be deducted when calculating the standards under subparagraph 3 and subparagraph 4, items 2 and 3 of this paragraph.
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9. A significant increase in the long/short ratio during the preceding period is defined as follows:
When both of the following conditions are met on the business day preceding the given day:
(1) A long/short ratio of 20% or more on the business day preceding the given day, when both of the following conditions are met:
i. A margin utilization rate of 25% or above.
ii. A stock loan rate of 15% or above.
(2) The long/short ratio on the business day preceding the given day is larger than the lowest long/short ratio of the preceding 6 business days (counting from the business day preceding the given day) by a factor of four or more.
Exceptions:
1. The long/short ratio of newly-listed common stocks for which there is a period of no restrictions on price fluctuations shall not be included in the calculation of numerical standards under this paragraph.
2. The standards under this paragraph shall not apply to government bonds, ordinary corporate bonds, convertible corporate bonds, corporate bonds with warrants, preferred stocks with warrants, foreign-issued bonds, bond conversion entitlement certificates, depository receipts, and call (put) warrants.
3. The long/short ratio on the business day preceding the given day is lower than the long/short ratio on the business day two days prior to the given day.
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