| Title： |
Taiwan Stock Exchange Corporation Measures for Responding to Natural Disasters(2003.04.30) |
| Date： |
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1
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Closure of this Corporation's centralized exchange market during the
occurrence of a natural disaster shall be handled according to the following principles:
(1) When the mayor of Taipei City announces cancellation of work for all
personnel of government and educational institutions in Taipei City on the given day,
this Corporation's centralized exchange market shall be closed for the entire day, all
personnel of securities firms shall suspend operations for the entire day, and the
handling of settlements for funds and securities due on the given day shall be
postponed accordingly.
(2) When the mayor of Taipei City announces cancellation of work for all
personnel of government and educational institutions in Taipei City in the morning of
the given day, this Corporation's centralized exchange market shall be closed for the
entire day, and the handling of settlements for funds and securities due on the given
day shall be postponed accordingly.
(3) When the mayor to Taipei City announces cancellation of work for all
personnel of government and educational institutions in Taipei City in the afternoon
of the given day, this Corporation's centralized exchange market shall not close,
however, trading after the market has closed shall be suspended, and the handling of
settlements for funds and securities due on the given day by all personnel of securities
firms shall be postponed accordingly.
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2
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When this Corporation's centralized exchange market remains open for an entire day:
2.1. During the occurrence of a natural disaster, securities firms with head office and branch offices situated outside of the disaster area shall operate as usual, and settlements due the current day shall be handled as usual.
2.2. If due to the occurrence of a natural disaster, the county commissioners or city mayors in the disaster area announce cancellation of work for government and educational institutions on the given day in all or part of the areas under their administrative jurisdiction, the securities firms in the disaster area may decide at their own discretion whether to conduct operations as usual. Irrespective of whether operations are conducted as usual, this Corporation shall handle all settlements of funds and securities due on the given day according to the following principles and no securities firm may raise any objection:
2.2.1. Funds:
2.2.1.1. All securities firms inside the disaster area shall request their head or branch offices outside the disaster area to handle all settlements of funds.
2.2.1.2. Head offices inside the disaster area shall designate a branch office outside the disaster area to conduct settlements on their behalf. Where the designated branch office is unable to complete settlements, this Corporation may advance the funds for settlements using the clearing and settlement funds deposited by such securities firm. In the event that the deposited clearing and settlement funds are less than required, the securities firm may file an application for advance payment of settlement payables by this Corporation and shall reimburse the advance after the natural disaster has passed.
2.2.1.3. Where the head and branch offices of a securities firm are all situated in the disaster area, this Corporation may advance the funds for settlements using the clearing and settlement funds deposited by such securities firm. In the event that the deposited clearing and settlement funds are less than required, this Corporation shall advance the difference for completion of settlements, and the securities firm shall reimburse the advance after the natural disaster has passed.
2.2.1.4. Where this Corporation advances the funds for settlements using the clearing and settlement funds deposited by a securities firm, or where a securities firm files an application for advance payment of settlement payables by this Corporation to complete settlement, this Corporation may notify the central depository company to retain as collateral in this Corporation's account the portion equivalent to securities receivable within the same clearing period.
2.2.2. Securities:
2.2.2.1. On the first day of disaster:
Securities firms in the disaster area shall postpone the handling of settlements for securities due on the given day.
2.2.2.2. On the second day of the disaster or later:
Where the securities in the settlement account of securities firms in the disaster area are insufficient for settlement, this Corporation may borrow securities on their behalf for completion of settlements and may notify the central depository company to retain as collateral in this Corporation's account the portion equivalent to securities receivable within the same clearing period or retain settlement price receivables with equivalent values. Such collateral shall be excluded from application of Article 109, paragraph 2 of this Corporation's Operating Rules.
2.3. If due to the occurrence of a natural disaster, the county commissioners or city mayors in the disaster area announce cancellation of work for government and educational institutions in the morning or afternoon of the given day in all or part of the area under their administrative jurisdiction, the securities firms inside the disaster area may decide at their own discretion whether to conduct operations as usual. Irrespective of whether operations are conducted as usual, settlements of funds and securities due on the given day shall be handled according to the following principles:
2.3.1. When work is cancelled in the morning of a given day, all settlements of funds and securities due on the given day shall be handled in conformity with the provisions of paragraph 2.2.
2.3.2. When work is cancelled in the afternoon of a given day, all settlements of funds due on the morning of the given day shall be handled normally by all securities firms in the disaster area, and where settlements of securities due in the afternoon of the given day cannot be handled as usual, they shall be handled in conformity with the provisions of subparagraph 2.2.2.
2.4. Securities firms with head office and branch offices all situated outside the disaster area that are truly incapable of carrying out settlement because their correspondent settlement banks are not operating normally due to a natural disaster shall submit a written explanation, and this Corporation may handle the situation in accordance with the provisions of subparagraph 2.2.1.
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3
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Where the centralized exchange market remains open on a day during occurrence of a natural disaster, a principal of a securities firm that ceases operations in a disaster area may open an account on the same day at a securities firm operating normally and engage in consignment trade on the same day.
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4
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These Measures shall be submitted to the Competent Authority for approval before implementation. The same shall apply to amendments hereto.
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