| Title： |
Taiwan Stock Exchange Corporation Directions for Securities Firms Handling Changes to Trading Category(2014.01.03) |
| Date： |
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These Directions are established in accordance with Article 78, Paragraph 2 of the Operating Rules of the Taiwan Stock Exchange Corporation.
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Filing procedures regarding changes to trading category:
- If securities firms apply for changes to all or part of the normal settlement or after-hours fixed price trading of the same transactions, which fall within the following trading categories, dealt at the trading time specified by Article 3 of the Operating Rules, they shall fill out the detail sheets of changes to trading categories by principal and submit them to the competent authority for approval before transmitting the change information to the TWSE by computer between 9: 00 AM to 6:00 PM on the trading day. If transmission cannot be made in time due to an accident, securities firms shall notify the TWSE through telephone to request extension of filing deadline:
- switches of trading categories between ordinary and margin trading.
- switches of trading categories between margin purchases and short sales under margin trading.
- switches of trading categories between sales of ordinary trading and sales of borrowed securities.
- switches of trading categories between sales of borrowed securities and sales of margin trading.
- Securities dealers to file changes to trading category may file for switch of trading categories between sales of ordinary trading and sales of borrowed securities; however, segregated ETF accounts ("777777-7" under a securities dealer account) are forbidden to change trading categories. The provisions of the preceding paragraph shall apply mutatis mutandis to the remaining procedures.
- (Deleted)
- Upon receipt from the TWSE of a breach of contract relating to securities trading by the principal, the securities broker may not file any application for changing such principal's transaction of ordinary trading to margin purchases and short sales at the same day.
- After securities firms report day trades, they may file an application for changes to trading category only when they have withdrawn the reports.
- After sales of borrowed securities and sales of margin trading are traded, reports of day trades may be made only when the trading category has been changed into ordinary trading.
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If there are any disputes between securities brokers and investors arising out of the handling of changes to trading category, the securities brokers shall solely take the responsibility.
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Violation:
- (Deleted)
- (Deleted)
- (Deleted)
- The TWSE will give notice of improvement pursuant to Article 135 of the Operating Rules where an entry for information changes is not made by the prescribed time, unless there is good cause and approval of the TWSE is granted.
- Where there are serious violations regarding changes to trading category, the TWSE may discipline the securities firm pursuant to Articles 135 and 136 of the Operating Rules and give warning to its violating supervisor or to halt his business activities for one to six months pursuant to Article 144 of the Operating Rules.
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These Directions shall take effect after having been submitted to and approved by the competent authority. Subsequent amendments thereto shall be effected in the same manner
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