| Title： |
Taiwan Stock Exchange Corporation Measures for Handling Malfunctions or Telecommunication Disruptions in Trading Systems or Trading Transmission Systems(2011.01.26) |
| Date： |
|
|
1
|
The term "malfunction" or "telecommunication disruption" referred to in these Measures means malfunction or telecommunication disruption of the trading systems or trading information transmission systems of the Taiwan Stock Exchange Corporation ("TWSE").
|
|
2
|
When any of the following circumstances occurs as a result of malfunction or telecommunication disruption of the trading systems or trading information transmission systems, the TWSE shall, within 20 minutes after confirmation, publicly announce the system malfunction or telecommunication disruption. The TWSE shall investigate and ascertain the nature of the malfunction or telecommunication disruption within 40 minutes following the public announcement and, if it is determined that the problem cannot be remedied in a short time, shall announce suspension of trading within 20 minutes following such determination:
- Partial suspension of trading:
When there is a failure or obvious error in matching any security.
- Complete suspension of trading (in any of the following circumstances):
- All securities firms are unable to enter information of orders.
- All securities firms are unable to receive execution reports.
- All securities are unable to be matched.
- Market information disclosures at securities firms' places of business and the Market Information System of TWSE are all disrupted.
If any of the conditions listed in the preceding paragraph arises during a malfunction or disruption of data lines of the Directorate General of Telecommunications, the trading suspension measures prescribed in the preceding paragraph shall apply.
If a system malfunction or disruption arises during the TWSE's engaging in after-market fixed-price trading, odd-lot trading, auctions, or on-market tender offers, the TWSE shall promptly announce suspension of trading of the given type of transaction, and all trading orders thereof on the given day shall be invalid.
|
|
3
|
In any of the following circumstances applies, the TWSE shall announce resumption or discontinuation of trading as the case may be:
- After an announcement of partial suspension of trading, if normal operations for any security that previously could not be matched can be resumed for a period of time prior to close of market, the TWSE shall announce resumption of trading of that security; otherwise, it shall announce discontinuation of trading of that security.
- After an announcement of complete suspension of trading, if normal operations for any security can be resumed for a period of time prior to close of market, the TWSE shall announce resumption of trading of that security, while the trading of other securities shall remain suspended; provided that normal operations for the suspended securities cannot be resumed for a period of time prior to close of market, the TWSE shall announce discontinuation of trading of such securities.
|
|
4
|
Measures following resumption of trading:
- If the TWSE resumes trading by activating the backup systems, after accepting trading orders for a period of time, it shall carry out the first trade matching through call auction. Existing but unexecuted trading orders shall remain valid, with the order of priority remaining unchanged; however, when the trading resumes after market opening, the priority for satisfying trading orders that have been entered before market opening but not yet executed shall change from matching them in a random order determined by computer to matching them in order of price priority and time priority. If the data of any trading orders that have been entered but not yet executed are lost, such lost data shall be invalid; securities firms shall ascertain whether the previously entered trading orders have in fact not been executed or have been cancelled before they may re-enter such unexecuted trading orders. Verification of trading orders data between securities firms and the TWSE shall be conducted in accordance with the applicable operation manuals of the TWSE.
- If the TWSE resumes trading by repairing the systems, depending on the timing of resumption of trading, the trade matching shall be carried out following the method as required by applicable regulations. If the data in the computer memory of the TWSE is fully intact, previous unexecuted trading orders shall remain valid, and the order of priority shall remain unchanged. If the data in the computer memory of the TWSE is lost in part or in whole, all previous unexecuted trading orders shall be invalid. Securities firms shall first ascertain whether such previous unexecuted trading orders have in fact not been executed or have been cancelled before they may re-enter the unexecuted trading orders.
|
|
5
|
After an announcement of complete suspension of trading, if resumption of normal operations for a period of time prior to close of market is impossible for every and all securities, the TWSE shall promptly announce closing of the market.
|
|
6
|
Public announcements by the TWSE of suspension of trading, resumption of trading, discontinuation of trading, or closing of the market shall be made through the Market Information System, or computer links to server, or information company systems. Upon announcement of discontinuation of trading or closing of the market, the price of the final transaction prior to the occurrence of malfunction shall be taken as the current day's closing price.
|
|
7
|
Matters on which these Measures are silent shall be handled in accordance with the applicable laws and regulations and the bylaws and rules of the TWSE.
|
|
8
|
These Measures, and any amendments hereto, shall come into force upon approval by the competent authority.
|