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Trading and transaction allocation reporting:
(1) Trading:
(i) The rules governing volumes and prices of trading orders placed through securities firms' omnibus accounts shall be the same as for ordinary trading accounts, but odd lots of different principals may not be combined into integer multiples of thousand-share lot and submitted for regular trading and after-hours fixed-price trading through an omnibus account.
(ii) When there is a change in the statement [of the principals served by an authorized trader through an omnibus trading account], the statement of principals shall be delivered to the securities firm within 5 business days after the securities firm submits the post-allocation statement of detailed transactions ("post-allocation transaction statement"), or a list of changes in principals shall be transmitted to the securities firm within three business days after the securities firm submits the post-allocation transaction statement, using a form of notification (fax or electronic transmission) agreed between the securities firm and the authorized trader.
(iii) A securities firm accepting orders to trade securities through an omnibus trading account shall retain a comprehensive record of orders for such trades, original execution reports, and post-allocation transaction statements in accordance with the TSEC's Table of Required Periods for Retention of Accounting Statements and Vouchers by Securities Firms. The aforementioned "post-allocation transaction statements" shall include the securities firm code, the omnibus trading account number, the stock code, whether the trade was a purchase or a sale, whether odd lots or round lots were traded, the trading order code number, the post-allocation investor account numbers, numbers of post-allocation transaction lots (shares), the total amount of post-allocation transactions, and the securities trading category.
(iv) A securities firm accepting orders to trade securities through an omnibus trading account shall provide a trading quota for each principal to the authorized trader, who shall be responsible for enforcing each principal's trading quota in daily authorized trading. Whenever a given statement of post-allocation transactions is found to contain one or more cases of a trading quota being exceeded by a principal, a single trading quota violation by the omnibus account will be recorded; when an omnibus trading account accrues more than ten such violations in a single month, the TSEC may impose a penalty on the respective securities firm in accordance with applicable regulations.
(v) When a securities firm accepts an order to sale odd-lot securities through an omnibus trading account, the authorized trader shall be responsible for ensuring that the central depository account of the principal contains the necessary odd-lot shares in sufficient quantity for delivery of the odd-lot sell order placed by the principal. If, following submission of the post-allocation statement, any violation of the above provision is found, the violation may only be handled by the securities firm pursuant to the regulations in force for reporting of out-trades or default.
(vi) When a securities firm accepts an order to trade securities through an omnibus trading account where regulations require it to pre-collect part or all of the trade price or the securities, the authorized trader shall be responsible for managing the pre-collections and making delivery to the securities firm after collection from the principals.
(vii) When, pursuant to the Standard Directions for Internal Control Systems in Securities Firms, a securities firm makes its daily calculation of the amounts of trades of the principals with the ten largest trading volumes, for any trade made by a principal through an omnibus account, the securities firm may substitute the amount of the transaction allocation for the amount of the trading order; if the principal made trades other than through the omnibus trading account, the amounts of those trading orders shall be also be added.
(2) Transaction allocation reporting:
(i) Securities transacted by an authorized securities firm in orders handled through a non-omnibus trading account may not be combined into the total amount and volume of the same securities transacted through an omnibus trading account for the purposes of transaction allocation reporting.
(ii) A securities firm shall make allocations on the date of the transaction based on the individual securities already transacted. The aggregate transaction amount and volume of the allocations made to all principals must exactly equal the aggregate transaction amount and volume of the respective securities transactions made through the omnibus trading account on that day, and the securities firm shall submit the post-allocation transaction statement to the TSEC between 3 pm and 5 pm on the same day, in the prescribed electronic format.
(iii) The volume of any single allocation for regular trading and after-hours fixed-price trading may not exceed 499 trading units per transaction, and that for odd-lot trading may not exceed 999 shares. The post allocation transaction statement for regular trading and after-hours fixed-price trading shall be reported separately from that for odd-lot trading.
(iv) The total transaction amount of any individual security allocated to any principal from regular trading and after-hours fixed-price trading shall be an integer multiple of NT$10, and the total transaction volume of such an allocation shall be an integer multiple of 1,000 shares. The total transaction amount of an allocation of an individual security from an odd-lot transaction may be in New Taiwan Dollars, dimes, or cents, and the total transaction volume of such an allocation shall be an integer multiple of one share.
(v) A securities firm may enter the difference between the securities firm's reported total transaction amounts for each principal and the amount of the principal's actual settlements into accounts as "other operating revenues" or "other operating expenses."
(vi) If the transaction prices of any security calculated pursuant to the post-allocation transaction statement is unreasonable or unfair, such as where it exceeds either the maximum or minimum price for that day's transaction through the given omnibus trading account on that day, the TSEC may announce the authorized trader's name and related information and notify the authorized trader's principal.
(3) A securities firm shall report the itemized details of the trading orders of each principal or authorized trader to the TSEC between 3 pm and 5 pm on the date of the transaction in the prescribed electronic format. In accordance with operational needs, the TSEC may require a securities firm to provide execution reports in real time for trades then being made through the omnibus trading account, as well as details of each principal's or authorized trader's trading orders. The information on trading orders referred to above shall include the securities firm code, the omnibus trading account number, the stock code, whether the trade was a purchase or a sale, the code numbers of the original trading orders, the names and code numbers of the principals or authorized traders, and the volumes of the trading orders. One or more code numbers may be used by the same authorized trader; therefore, as dictated by the TSEC's operational needs, the TSEC may require the securities firm to provide related detailed information on a principal or authorized trader.
(4) A securities firm may report a partial adjustment of allocation with respect to the transaction information under 3.(2)(ii) of these Guidelines by 4 pm on the first business day after the transaction date and amend its reporting of information on trading orders under 3.(3) of these Guidelines. Any allocation the securities firm has made to a domestic securities investment trust fund on the date of the transaction, however, may only be allocated, when reporting a partial adjustment of allocation on the following business day, to a domestic securities investment trust fund.
(5) For post-allocation transaction statements submitted by securities firms on the transaction date and partial adjustment of allocations made on the following business day for omnibus trading accounts with a "995555+check code" securities trading account number, the allocations may only be made to offshore overseas Chinese and foreign nationals and Taiwan branch offices of foreign banks and insurance companies referred to in Article 75-4 of the Operating Rules of the Taiwan Stock Exchange Corporation. For those for omnibus trading accounts with "885555+check code" securities trading account numbers, the allocations may only be made to domestic institutional investors (domestic securities investment trust funds, governmental bodies, domestic banks and insurance companies, and the "group enterprises" referred to in Article 6 of the Supplementary Provisions to the Taiwan Stock Exchange Corporation Rules for Review of Securities Listings) and discretionary customers referred to in Article 75-4.
(6) Only after a securities firm has submitted the post-allocation transaction statement may it report out-trades or account number corrections or a change of trading category by means of the post-allocation securities trading account of any principal.
(7) Clearing and settlement:
A securities firm accepting orders for securities trading through an omnibus trading account shall submit post-allocation transaction statements as instructed by the authorized traders and perform settlement through the principals' securities trading accounts pursuant to the Operating Rules of the Taiwan Stock Exchange Corporation.
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