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Article 4
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A securities brokers shall comply with the following provisions in brokerage trading of securities:
A broker must receive an order placed by a principal or principal's agent by means of letter, telegraph, telephone, the Internet, dedicated line, closed dedicated network, other electronic trading method approved by this Corporation, or placed in person, before the broker may fill out and print the trading order form prescribed under Article 87 of the Securities and Exchange Law in order to execute a trade.
When a principal or principal's agent places a securities trade by letter, telegraph or telephone, the securities broker's officer managing the trade shall fill out the trading order form in either written or electronic form, print the trading order, and stamp it. When the principal places a trade by an electronic trading method such as voice, the Internet, dedicated line, or closed dedicated network, the securities firm may be exempt from the requirement to produce and fill out the trading order form; however, it shall print a record of requests for trades in the chronological order received, and for requests for trades made by an electronic trading method such as voice, the Internet, dedicated line, or closed dedicated network, or where trading order forms were filled out in electronic form and not printed out one by one, the officer processing the trade and the department manager, or the employee receiving the trading order, shall add their signatures to the record of requests for trades. The record of
equests for trades shall include the principal's name and account number, the time of the order, the type, number, and face value of the securities, the order's price limit, the period of validity, the name or code number of the trader, and the method of request. Requests made in person shall be signed and stamped by the principal or the principal's agent.
When the principal makes a trading request over the Internet, the record of requests referred to in the preceding paragraph shall also include the principal's Internet address (IP) and digital signature. When the request is made by phone, the broker shall make use of the telecommunications provider's caller ID service to record the caller's telephone number. When the immediate record of requests is printed, the items listed above may be omitted. An agent must first obtain a power of attorney from the principal before trading on his behalf or signing trading documents. The securities broker shall not be liable for errors that occur when the principal or his agent makes a trading request by telephone when such errors are not attributable to the fault of the broker.
With the exception of orders placed by voice, for orders between securities brokers and principals using electronic trading methods, electronic signatures issued by a certification authority shall be used to differentiate and verify documents transmitted during placement of orders, order confirmation, and transaction confirmation. However, this restriction shall not apply for orders placed between a principal and securities broker electronically over a dedicated line if the connection access points are all located outside the Republic of China and the connection method complies with the local laws and regulations of the country(ies) in which they are located.
Where records of trading orders placed by electronic trading methods such as voice, the Internet, dedicated line, or closed dedicated network are saved in accordance with the following provisions, the broker may be exempt from the requirement to print out a record of requests for trades:
1. Use of a digital data storage medium that allows neither modification nor deletion, with complete records produced on the date of transaction.
2. Establishment of a comprehensive directory and procedures for management.
3. Personnel solely responsible for management of the storage medium, and the capability to convert electronic data files to printed format at any time.
Trading order forms which are filled out electronically and not printed one by one shall be stored in an electronic form that cannot be altered or deleted.
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