| Title： |
Taiwan Stock Exchange Corporation Regulations Governing Trading of Depositary Receipts(2002.05.08) |
| Date： |
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Article 1
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These Regulations are promulgated pursuant to Article 55 of the Operating Rules of the Taiwan Stock Exchange Corporation.
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Article 2
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Depositary receipts issued by foreign issuers in accordance with the Criteria Governing the Offering and Issuance of Securities by Foreign Securities Issuers may be traded on the Taiwan Stock Exchange Corporation's (TSEC) centralized securities exchange market upon approval for listing by the TSEC.
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Article 3
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Trading of listed depositary receipts shall be performed in accordance with these Regulations; any matters not provided for herein shall be governed by the Operating Rules of the Taiwan Stock Exchange Corporation or other applicable regulations.
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Article 4
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The volume of a purchase or sale order shall be one trading unit or an integral multiple thereof. A trading unit shall be one thousand units.
Where the volume of an order is less than one trading unit, trading shall be done in accordance with the applicable provisions of the Regulations Governing the Trading of Odd-Lot Shares.
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Article 5
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The price quoted for purchase or sale of depositary receipts shall be the price of a single depositary receipt unit.
Provisions governing the tick size for prices of listed stocks apply mutatis mutandis to tick size for depositary receipt trade order prices.
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Article 6
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After depositary receipts have been listed, provisions governing the daily price fluctuation limits for listed stocks apply mutatis mutandis to those for depositary receipts.
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Article 7
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Except where otherwise provided, in competitive auction trading of depositary receipts after initial listing, the public offering price shall be taken as the reference price for determining the fluctuation limit.
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Article 8
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The provisions of Article 58, paragraph 5 of the Operating Rules of the Taiwan Stock Exchange Corporation apply mutatis mutandis to the posting of quotations and trading volumes.
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Article 9
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Trading of depositary receipts is restricted to trading through limit orders.
Depositary receipts are traded through automated computer trading, with trade orders limited to day orders only.
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Article 10
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For foreign nationals or overseas Chinese opening accounts for trading of depositary receipts, Article 77-4 of the Operating Rules of the Taiwan Stock Exchange and other relevant regulations apply.
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Article 11
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Within the deadlines specified below, depository institutions shall perform conversion to New Taiwan Dollar amounts for the following data on price and value, uniformly applying the closing interbank foreign exchange market rate for the previous business day, and report the results to the TSEC:
1. The daily closing price of the stock represented by the depositary receipt in its home market, which shall be submitted to the TSEC one-half hour prior to market opening.
2. Information on distribution of entitlements of the stock represented by the depositary receipt, which shall be submitted to the TSEC within 12 days from the foreign issuer's date of decision, provided that where law or regulation in the issuer's home country requires reporting within a shorter period, that period shall apply.
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Article 12
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The Operating Rules of the Taiwan Stock Exchange Corporation apply mutatis mutandis to ex-dividend and ex-rights procedures for depositary receipts.
When there is a stock split in the underlying stock represented by a depositary receipt and the depository institution issues additional new depositary receipts, the depository institution shall set a record date for the new issue and a price adjustment date.
Calculation of the fluctuation limit for the price adjustment date shall take as benchmark the previous day's closing price divided by the ratio of the total number of depositary receipt units after the new issue to the original number.
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Article 13
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Separate settlement calculation tables shall be produced for clearing of depositary receipts; clearing and settlement of depositary receipts is governed mutatis mutandis by the provisions of the Operating Rules of the Taiwan Stock Exchange Corporation.
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Article 14
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For fees collected from principals by securities firms taking orders for trading of depositary receipts, and for collection of transaction charges from securities firms by the TSEC, the fee schedules will be determined by the mutatis mutandis application of provisions applicable to listed stocks.
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Article 15
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These Regulations, and any amendments hereto, will be promulgated and enforced upon ratification by the competent authority.
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