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Title:

Numerical Standards for 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  CH

Amended Date: 2021.07.26 
Categories: Market Supervision > Stock Market Surveillance

Title: 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(2011.11.18)
Date:
Article 1     These Detailed Numerical Standards and Exceptions to the Irregularity Standards are adopted under Article 4, paragraph 4 of the TWSE's Directions for Announcement or Notice of Attention to Trading Information and Dispositions (the "Directions").
Article 2     The expression "an irregularity in the cumulative percentage of increase or decrease in the closing price of a security during the most recent period" as used in Article 4, paragraph 1, subparagraph 1 of the Directions shall mean that 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 percent, while differing with the average values for both the market as a whole and for same-sector securities, as calculated in accordance with this paragraph, by 20 percent or more.
    Exceptions to the preceding paragraph are as follows:
  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. When non trade-related factors (such as ex-rights or ex-dividend factors) have caused fluctuations in the price of a security or an index during the period for which standards under the preceding paragraph are calculated, those factors shall be excluded when calculating the percentage of increase or decrease in the closing price or the closing index.
  3. The standards of the preceding paragraph shall not apply when the closing price of a security (excluding call (put) warrants) is less than NT$5.
  4. The provisions of the preceding paragraph regarding same-sector securities shall not apply when there are fewer than five securities in a given sector.
  5. The provisions of the preceding paragraph regarding same-sector securities shall not apply when a security has a negative price-to-earnings ratio or is trading at 60 times earnings or above.
Article 3     The expression "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 most recent period" as used in Article 4, paragraph 1, subparagraph 2 of the Directions shall mean that the particular security meets any one of the following conditions 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 percent, while meeting one of the two following conditions:
    1. The percentage of increase for the given security differs with the average values for both the market as a whole and for same-sector securities by 85 percent or more, as calculated in accordance with this subparagraph, while the closing price for the day is also above the opening reference price.
    2. The percentage of decrease for the given security differs with the average values for both the market as a whole and for same-sector securities by 85 percent 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 percent, while conforming to one of the two following conditions:
    1. The percentage of increase for the given security differs with the average values for both the market as a whole and for same-sector securities, as calculated in accordance with this subparagraph, by 110 percent or more, while the closing price for the day is also above the opening reference price.
    2. The percentage of decrease for the given security differs with the average values for both the market as a whole and for same-sector securities, as calculated in accordance with this subparagraph, by 110 percent 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 percent, while meeting one of the two following conditions:
    1. The percentage of increase for the given security differs with the average values for both the market as a whole and for same-sector securities, as calculated in accordance with this subparagraph, by 135 percent or more, while the closing price for the day is also above the opening reference price.
    2. The percentage of decrease for the given security differs with the average values for both the market as a whole and for same-sector securities, as calculated in accordance with this subparagraph, by 135 percent or more, while the closing price for the day is also below the opening reference price.
    Exceptions to the preceding paragraph are as follows:
  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 the preceding paragraph.
  2. The standards of the preceding paragraph shall not apply to corporate bonds with non-detachable warrants, preferred shares with non-detachable warrants, call (put) warrants, and stock warrants.
  3. The standards of the preceding paragraph shall not apply when trading information for the given security has been announced according to Article 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:
    1. The cumulative percentage is below 25 percent.
    2. The cumulative percentage is above 25 percent, while differing with the average cumulative values of both the market as a whole and of same-sector securities for the preceding six business days (inclusive of the given day) by 20 percent or more.
    3. The direction of movement of the particular security is opposite that of the standard increase or decrease prescribed under each subparagraph of the preceding paragraph.
  4. 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 the preceding paragraph are calculated, those factors shall be excluded when calculating the percentage of increase or decrease in the closing price.
  5. The provisions of the preceding paragraph regarding same-sector securities shall not apply when there are fewer than five securities in a given sector.
  6. The provisions of the preceding paragraph regarding same-sector securities shall not apply when a security has a negative price-to-earnings ratio or is trading at 60 times earnings or above.
Article 4     The expression "an irregularity in the cumulative percentage of increase or decrease in the closing price of a security for the most recent period, combined with an irregular increase in the volume of trade for the given day relative to the daily average for the most recent period" as used in Article 4, paragraph 1, subparagraph 3 of the Directions shall mean that 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 percent, and differs with the average values for both the market as a whole and for same-sector securities, as calculated in accordance with this subparagraph, by 20 percent 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 to the preceding paragraph are as follows:
  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 the preceding paragraph shall not apply to convertible corporate bonds, corporate bonds with non-detachable warrants, preferred stocks with non-detachable warrants, bond conversion entitlement certificates, call (put) warrants, and stock warrants.
  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 the preceding paragraph are calculated, those factors shall be excluded when calculating the percentage of increase or decrease in the closing price.
  4. The standards under the preceding paragraph shall not apply when intraday turnover is less than 0.1 percent, or when trading volume remains below 500 trading units.
  5. The provisions of the preceding paragraph regarding same-sector securities shall not apply when there are fewer than five securities in a given sector.
  6. The provisions of the preceding paragraph regarding same-sector securities shall not apply when a security has a negative price-to-earnings ratio or is trading at 60 times earnings or above.
Article 5     The expression "an irregularity in the cumulative percentage of increase or decrease in the closing price of a security for the most recent period, combined with an unusually high intraday turnover rate" as used in Article 4, paragraph 1, subparagraph 4 of the Directions shall mean that 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 percent, and differs with the average values for both the market as a whole and for same-sector securities, as calculated in accordance with this subparagraph, by 20 percent or more.
  2. The intraday turnover rate for the given security is 10 percent or greater, and is greater than the average value for the market as a whole, as calculated in accordance with this subparagraph, by 5 percent or more.
    Exceptions to the preceding paragraph are as follows:
  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 the preceding paragraph shall not apply to convertible corporate bonds, corporate bonds with non-detachable warrants, preferred stocks with non-detachable warrants, bond conversion entitlement certificates, call (put) warrants, and stock warrants.
  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 the preceding paragraph are calculated, those factors shall be excluded when calculating the percentage of increase or decrease in the closing price.
  4. The provisions of the preceding paragraph regarding same-sector securities shall not apply when there are fewer than five securities in the given sector.
  5. The provisions of the preceding paragraph regarding same-sector securities shall not apply when a security has a negative price-to-earnings ratio or is trading at 60 times earnings or above.
Article 6     The expression "an irregularity in the cumulative percentage of increase or decrease in the closing price for the particular security in the most recent 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" as used in Article 4, paragraph 1, subparagraph 5 of the Directions shall mean that 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 percent, and differs with the average values for both the market as a whole and for same-sector securities, as calculated in accordance with this subparagraph, by 20 percent 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 percent of the total volume of confirmed transactions in the given security (if the securities firm has branch offices, an additional 1 percent may be added for each branch office; the combined total may not exceed 35 percent), while also reaching a volume of 500 trading units or more.
    Exceptions to the preceding paragraph are as follows:
  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 the preceding paragraph.
  2. The standards under the preceding paragraph shall not apply to convertible corporate bonds, corporate bonds with non-detachable warrants, preferred stocks with non-detachable warrants, and bond conversion entitlement certificates.
  3. When non trade-related factors (such as ex-rights or ex-dividend factors) have caused fluctuations in the price of a security or an index during the period for which standards under the preceding paragraph are calculated, those factors shall be excluded when calculating the percentage of increase or decrease in the closing price or the closing index.
  4. The provisions of the preceding paragraph regarding same-sector securities shall not apply when there are fewer than five securities in the given sector.
  5. The provisions of the preceding paragraph regarding same-sector securities shall not apply when a security has a negative price-to-earnings ratio or is trading at 60 times earnings or above.
Article 7     The expression "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 most recent period" as used in Article 4, paragraph 1, subparagraph 6 of the Directions shall mean that 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 to the preceding paragraph are as follows:
  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 under the preceding paragraph.
  2. The standards under the preceding paragraph shall not apply to convertible corporate bonds, corporate bonds with non-detachable warrants, preferred stocks with non-detachable warrants, bond conversion entitlement certificates, call (put) warrants, and stock warrants.
  3. The standards under the preceding paragraph shall not apply when during the preceding six business days (inclusive of the given day), trading information for the given security has been announced according to Article 4, paragraph 1, subparagraph 3.
  4. The standards under the preceding paragraph shall not apply when intraday turnover is less than 0.1 percent, or when trading volume remains below 500 trading units.
Article 8     The expression "a significantly high cumulative turnover rate for the most recent period" as used to in Article 4, paragraph 1, subparagraph 7 of the Directions shall mean that 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 percent, while there is a difference of 40 percent 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 percent or more, while there is a difference of 5 percent or more between the turnover rate and the average value for the market as a whole, as calculated in accordance with this subparagraph.
    Exceptions to the preceding paragraph are as follows:
  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 the preceding paragraph.
  2. These standards under the preceding paragraph shall not apply to convertible corporate bonds, corporate bonds with non-detachable warrants, preferred stocks with non-detachable warrants, bond conversion entitlement certificates, call (put) warrants, and stock warrants.
  3. The standards under the preceding 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 Article 4, paragraph 1, subparagraph 4.
  4. The standards under the preceding paragraph shall not apply when the monetary value of confirmed transactions in the given security on the given day is less that NT$500 million.
Article 9     The expression "an irregular price-to-earnings rate, price-to-book ratio, and unusually high intraday turnover, combined with any one of the 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" as used in Article 4, paragraph 1, subparagraph 8 of the Directions shall mean that 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 60 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 6.0 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 percent 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:
    1. 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.
    2. 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 firmon the given day account for 10 percent or more (if the securities firm has branch offices, an additional 1 percent may be added for each branch office; the combined total may not exceed 25 percent) of the total monetary value of confirmed trades in the given security, while also reaching NT$100 million or more.
    3. The monetary value of confirmed purchases or sales of the given security by any single investor on the given day accounts for 10 percent 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 to the preceding paragraph are as follows:
  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 the preceding paragraph.
  2. The standards under the preceding paragraph shall not apply to securities other than common stocks.
  3. For trades of a security made under the TWSE's Regulations Governing Bulk-lot Trades, the transaction amount shall be deducted when calculating the standards according to subparagraph 3 and items 2 and 3 of subparagraph 4 of the preceding paragraph.
Article 10     The expression "an irregularity in the cumulative percentage of increase or decrease in the closing price and a significant increase in the long/short ratio during the most recent period" as used in Article 4, paragraph 1, subparagraph 9 of the Directions shall mean that the particular security simultaneously meets each 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 current day) is greater than 25 percent, and differs with the average values for both the market as a whole and for same-sector securities, as calculated in accordance with this subparagraph, by 20 percent or more.
  2. A long/short ratio of 20 percent or more on the business day preceding the given day, when both of the following conditions are met:
    1. A margin utilization rate of 25 percent or above.
    2. A stock loan rate of 15 percent or above.
  3. 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 to the preceding paragraph are as follows:
  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 calculation of the standards under the preceding paragraph.
  2. 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 the preceding paragraph are calculated, those factors shall be excluded when calculating the percentage of increase or decrease in the closing price or the closing index.
  3. The provisions of the preceding paragraph regarding same-sector securities shall not apply when there are fewer than five securities in a given sector.
  4. The provisions of the preceding paragraph regarding same-sector securities shall not apply when a security has a negative price-to-earnings ratio or is trading at 60 times earnings or above.
  5. 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.
Article 11     The expression "an irregularity in the percentage of premium or discount calculated from the closing price of Taiwan Depositary Receipts and the closing price of the shares they represent on the exchange market of their home country" as used in Article 4, paragraph 1, subparagraph 10 of the Directions shall mean that the percentage of premium or discount calculated from the closing price of Taiwan Depositary Receipts and the closing price of the shares they represent on the exchange market of their home country meets any of the following conditions:
  1. When on the current day, the percentage of premium on a Taiwan Depositary Receipt announced through the Market Observation Post System (MOPS) for the previous business day is in excess of 80 percent.
  2. When on the current day, the percentage of premium on a Taiwan Depositary Receipt announced through the Market Observation Post System (MOPS) for the previous business day is in excess of 30 percent, while the current day closing price is also the highest of the preceding six business days (inclusive of the current day), provided that if there is no closing price for the preceding five business days (excluding the current day), then the current day closing price must also be higher than the opening reference price.
  3. When on the current day, the percentage of discount on a Taiwan Depositary Receipt announced through the MOPS for the previous business day is in excess of 30 percent, while the current day closing price is also the lowest of the preceding six business days (inclusive of the current day), provided that if there is no closing price for the preceding five business days (excluding the current day), then the current day closing price must also be lower than the opening reference price.
    Exception to the preceding paragraph is as follows: When making for the Taiwan Depositary Receipts the comparison based on the closing prices for the preceding six days (inclusive of the current day) by the standards prescribed in the preceding paragraph, if price fluctuation occurs due to non trade-related factors (such as ex-rights or ex-dividend factors), those factors in the fluctuation shall be excluded from the calculation.
Article 12     The TWSE may adjust these Detailed Numerical Standards and Exceptions from time to time as it deems necessary depending on market conditions.
Article 13     These Detailed Numerical Standards and Exceptions, and any subsequent amendments hereto, shall enter into force upon public announcement following review and recordation by the competent authority.