| Title： |
Taiwan Stock Exchange Corporation Regulations Governing Trading of Foreign Stocks(1997.09.09) |
| Date： |
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Article 1
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These Measures are stipulated pursuant to Article 55 of the Operation Rules of this Corporation.
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Article 2
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Foreign stocks which are issued by a foreign issuer in accordance with the Guidelines for the Handling Offering and Issuance of Securities by Foreign Issuers and are approved by this Corporation for listing may be traded on the stock exchange of this Corporation.
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Article 3
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The purchase and sale of listed foreign stocks shall be transacted in accordance with the provisions of these Measures. With regard to matters not provided for in these Measures, the Operation Rules or other relevant regulations of this Corporation shall govern.
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Article 4
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Securities firms that intend to carry on the business of brokerage or of purchase or sale for their own accounts of foreign stocks with the prices of which are denominated in foreign currencies shall first obtain a permit from the Central Bank of China.
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Article 5
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The currency for the purchase or sale of foreign stocks shall be the same currency designated by the foreign issuer when applying for listing with this Corporation. A customer shall first open a foreign currency saving account at a foreign exchange bank designated by the securities broker before it may buy or sell foreign stocks which are settled in foreign currency.
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Article 6
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The volume quoted for purchase or sale shall be one trading unit or its integral multiples. The trading unit shall be identical with that of the foreign stocks originally traded on the [foreign] stock exchange. Where it is less than one trading unit, the trading thereof shall be effectuated in accordance with the relevant provisions of the Measures Governing the Trading of Odd-Lot Shares, which will be separately stipulated by this Corporation.
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Article 7
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The price quoted for purchase or sale of foreign stocks shall be for one share thereof. With respect to the up/down unit for price fluctuation of foreign stocks, the relevant provisions of this Corporation governing the up/down unit for listed stocks shall apply mutatis mutandis.
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Article 8
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Unless otherwise prescribed by the Competent Authority, there shall not be any limitation on the upper and lower limits of the allowable range for daily price fluctuation of foreign stocks.
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Article 9
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The provisions of Article 67 of the Operation Rules of this Corporation shall not apply to matters pertaining to transacting foreign stocks on an ex right or ex dividend basis.
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Article 10
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The purchase and sale of foreign stocks shall be automatically transacted through computer system. Quotations for purchase and sale shall be valid only on the date on which the quotation is given.
Entrustment for purchase or sale of foreign stocks shall be limited to entrustment at a designated price.
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Article 11
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For matching a transaction, the order of priority of quoted purchase and sale shall be determined in the following manner:
(1)Quotations for purchase at higher prices shall take precedence over purchase at lower prices and selling at lower prices shall take precedence over selling at higher prices.
(2)The order of priority of quotations at the same prices shall be determined in accordance with the sequence of their respective keyed-in time; provided that the order of priority of quotations keyed-in before opening of the market shall be determined randomly by the computer.
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Article 12
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The manner for determination of buying and selling quotations shall be collective competition, which shall be determined in the following manner:
(1)All buying quotations higher than the determined price and all selling quotations lower than the determined price shall be transacted.
(2)Either the buying or selling party quoting a price which is the same as the determined price shall be transacted.
In the event that there are two or more prices determined in accordance with the above-mentioned principles, the price that is closer to the most recent price at which purchase and sale are transacted at the current market or, if there is no price at which purchase and sale have been transacted at the current market, the price closer to the closing price for the previous day shall prevail.
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Article 13
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The prices of quoted purchase or sale to be publicly disclosed shall in principle be the most prior price and volume quoted for purchase or sale.
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Article 14
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The responsible institution designated by a foreign issuer shall deliver the following information to this Corporation:
(1)Daily closing price of a foreign stock at the stock exchange on which it is originally listed shall be delivered to this Corporation at the closing thereof.
(2)The details concerning the distribution of capital interests (dividends), bonuses or other benefits of foreign stocks shall be delivered to this Corporation within twelve (12) business days after the date on which the same is determined; provided that, in case the time limit is less than twelve (12) business days according to the laws and regulations [of its home country], such laws and regulations shall prevail.
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Article 15
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The trading hours of the stock exchange of this Corporation shall apply mutatis mutandis to the trading of foreign stocks.
In case of the tentative cessation of the trading at the stock exchange on which foreign stocks are originally listed, such foreign stocks shall be continuously traded at the stock exchange of this Corporation.
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Article 16
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A separate clearance statement shall be prepared for the settlement of foreign stocks. For the clearing and settlement of foreign stocks, the provisions of the Operation Rules of this Corporation shall apply mutatis mutandis, and the currency used therein shall be the same currency used for purchase and sale [of foreign stocks].
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Article 17
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In respect of the handling fee chargeable to customers by a securities firm entrusted to purchase or sell foreign stocks and of the handling fee chargeable by this Corporation to securities firms, the relevant provisions governing the fee schedules for listed stocks shall apply mutatis mutandis.
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Article 18
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These Measures shall take effect after having been submitted to and approved by the Competent Authority and publicly announced by this Corporation. Subsequent amendment to these Measures shall be effected in the same manner.
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