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Taiwan Stock Exchange Corporation Standards Governing the Places of Business and Facilities of Securities Firms and Securities Introducing Brokers(2019.04.16) |
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1
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Provisions regarding securities brokers:
- The place of business of a securities broker shall include the following:
- A trading counter for accepting orders for securities trades (including a trading counter for over-the-counter trading).
- A multifunction service counter.
- A trading room exclusively for processing orders not made in person.
- Other places or premises of operation.
The places of business referred to in the preceding paragraph shall be conspicuously indicated.
- Appropriate and complete public information or equipment shall be available at a place of business for investors' reference and use.
- No authorized trading of securities may take place at premises or facilities other than trading counters and trading rooms.
- Procedure for applying for the installation or change of the premises of places of business of securities firms:
- Prior to use, a newly established or relocated place of business shall be inspected by personnel dispatched from the Taiwan Stock Exchange Corporation (TWSE) (to assure that furnishings are complete and ready for immediate use); amendment of registration shall be completed; and re-issuance of the permit and certificate of license, where required, shall also be completed.
- Any expansion or downsizing of a place of business, trading counter, multifunction service counter, other places or premises of operation, and the trading room exclusively for processing orders not made in person shall be filed with the TWSE, with a floor plan and photographs submitted, prior to use.
- Other places of operation:
- Prior to use of a place of operation for a consulting business, a floor plan and photographs (and, for the initial establishment of such operating area, a photocopy of the competent authority's letter of approval for concurrent operation of a consulting business or a photocopy of a permit and certificate of license for the consulting business) shall be submitted to the TWSE for approval, and amendments to registration shall also be filed.
- A securities firm that operates trust-type wealth management business shall file for recordation and approval with the TWSE and complete any procedure for the re-issuance of the permit and certificate of license, prior to using a place of operation.
- For other places of operation, amendments to registration shall be filed with the TWSE within 15 days after use of the area begins.
A securities broker or its branch office shall notify the TWSE by letter when any alteration is made in the facilities or their use within the original place of business; with the exception of those not requiring amendment of registration or re-issuance of a permit and certificate of license, methods of handling for such shall be the same as in the preceding subparagraph.
- The trading room specially set up for a securities broker to accept trading orders not made in person shall have access control in place.
- Standards governing the premises and facilities of a securities firm that concurrently operates other securities related business shall conform to provisions applicable to such other securities business.
- When, due to the occurrence of a force majeure event, a securities broker needs to use the spare auction equipment on the cloud infrastructure of the TWSE because its auction equipment or trading transmission system malfunctions or is unable to continue normal operations, or has a building safety issue, or improvement is required, the securities broker may choose to use any one of the following places to do so:
- Use the place of business of the head office or one of the branch offices of the securities broker.
- Use the place of business of another securities firm.
- Use the place of business of a bank, provided that the bank must issue prior written consent, in which it shall agree that the TWSE may dispatch personnel to the bank's place of business to inquire about the actual status of use, and agree to provide proof of use for the given day.
- With the exception of Point 1 (4) and Point 4 (1), provisions governing places of business of securities brokers do not apply to a securities firm which primarily engages in cross-border trading and accepts only trading requests from securities firms or special-purpose securities firms incorporated by a foreign exchange but not trading orders from investors.
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2
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Provisions regarding securities dealers:
- A securities dealer's place of business shall be equipped with equipment for competitive bidding for proprietary trading, and the provisions of Part 1, Point 7 may be applied to the same.
- A securities dealer that concurrently conducts proprietary securities trading and proprietary futures trading may use the same equipment for both.
- The place of business for proprietary securities trading in a securities firm shall be clearly separated from the venue for securities brokerage.
- When a place of business is established or relocated, the TWSE shall be notified by letter to dispatch personnel for an on-site inspection. Operations may begin only after inspectors indicate conformance with the standards of the preceding paragraph; when a place of business is downsized or expanded, a report including a floor plan and photographs shall be submitted to the TWSE for approval and recordation.
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3
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Provisions regarding cross-selling and cooperative promotions by a securities firm:
A securities firm that satisfies the conditions prescribed by the competent authority shall clearly indicate the name and services of each company concerned that provides cross-selling services when engaging in cross-selling and cooperative promotion at its place of business.
Where a securities firm sets up a cross-selling or cooperative promotion services section at the place of business of another enterprise, it shall conform to the competent authority of such other enterprise and additionally make a report to the TWSE in advance pursuant to Part 1, Point 4 (2). In the event of any change or withdrawal, the securities firm shall report to the TWSE for recordation within 15 business days after the change or withdrawal.
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4
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The premises and facilities of other business that concurrently operates securities related business shall comply with the provisions of Points 1 and 2 of these Standards.
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5
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A securities firm to relocate its place of business shall submit the following documents to the competent authority through the TWSE to seek approval:
- Employee placement plan.
- Minutes of consultation meetings between the firm and the trade association or of labor-management meetings (applicable to firms without a trade association).
- Other documents required by the competent authority.
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6
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No securities firm may install any information equipment for competitive bidding at any related premises and facilities outside its place of business.
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7
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The sublease of business premises leased and rented by idle assets of a securities firm is governed by the TWSE Directions for the Sublease of Business Premises Leased and Rented by Idle Assets of a Securities Firm.
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8
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In the event that the competent building administration authorities of the county or city declare the place of business of a securities firm to be an unsafe structure or to be in violation of relevant codes and issue an order to discontinue use of the venue, or in the event the securities firm fails to effect improvement or undertake necessary measures following an order to effect improvement within a specified time period, the TWSE may handle the matter in accordance with Article 5 of the "Taiwan Stock Exchange Corporation Contract for Use of the Centralized Securities Exchange Market."
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