| Title： |
Guidelines for Securities Brokers in Reporting Default by Principals(2001.12.28) |
| Date： |
|
|
2
|
Reporting default:
A principal who fails to effect settlement within the specified period is in default. Securities brokers shall report the default in accordance with the rules below, and shall notify the principal:
(1) Computer transmission:
(i) Period for computer entry:
(a) Following confirmation of default by a principal, a securities broker shall immediately enter each item of information relating to the default into the corresponding field on the computer interface provided for that purpose by the Taiwan Securities Central Depository Co., Ltd. ("TSCD") at the request of the Taiwan Stock Exchange Corporation ("TSEC"). The deadline for reporting, in the case of delivery of securities sold, is 6:00 p.m. on the first business day following the confirmation of the trade; for the prices of securities purchased, the deadline is 6:00 p.m. on the second business day following the confirmation of the trade. However, on Monday through Friday, when bank operations prevent the broker from learning of any shortfall in the deposit of securities prices until after 6:00 p.m., the information shall be entered immediately, with a deadline of 8:00 p.m., and the bank notice shall be sent with a letter of report to the TSEC for verification.
(b) Securities brokers who enter information in accordance with the time period specified in the above subparagraph may, at 8:30 a.m. the next morning, receive and review the information on the principal's contractual default and submit it for display on the TSEC public announcement information system for that afternoon.
(c) When a natural disaster occurs such that local mayors and county magistrates announce closure of schools and public offices, electronic reporting by securities brokers within the affected region shall be undertaken in accordance with the provisions for handling of settlements due in the Taiwan Stock Exchange Corporation Measures for Market Closing or Trading During Natural Disasters.
(ii) Accidental breakdowns
When accidental breakdowns result in interruptions in the computer transmission lines, securities brokers shall inform the TSCD by telephone, and shall enter information on default at the TSCD or one of its information collection sites.
(2) Letter of report
In addition to the report to the TSCD referred to in the preceding paragraph, in any instance when defaults by the same principal on the same day total NT$10 million or more, the securities broker shall file a letter of report with the TSEC for its files; the same shall be true when the default violates Article 91, Paragraph 2 of the Operating Rules of the Taiwan Stock Exchange Corporation.
(i) Content of the letter of report:
(a) The name of the principal.
(b) The principal's account number.
(c) The principal's national ID number.
(d) The principal's address.
(e) The facts of the default.
(ii) Copies of documents to be attached:
(a)The front and reverse sides of the principal's national ID card.
(b)The consignment contract (front and reverse sides).
(c)The letter of consignment.
(d) The trading report.
(e) The settlement receipt form.
(iii) When a securities broker fails to file a report on a principal's default within the time period specified above, the TSEC may issue a warning in accordance with Article 136 of the Operating Rules of the Taiwan Stock Exchange Corporation, and notify the broker to rectify the situation or submit supplementary materials.
|