| Title： |
Taiwan Stock Exchange Corporation Regulations Governing Trading of Beneficiary Certificates(2006.04.21) |
| Date： |
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Article 12
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If a securities firm creates ETF beneficiary certificates in-kind by buying sufficient quantity of portfolio of stocks represented in said ETF for itself or on behalf of its customers under the same account, or buying such stocks, which in combination with the original holding, borrowed stocks, balance of stocks bought on the previous day, and redeemed in-kind on the previous day are sufficient for in-kind creation of said ETF beneficiary certificate, and then sell the ETF beneficiary certificate on the same day; or if a securities firm redeems ETF beneficiary certificates in-kind in exchange for the portfolio of stocks represented in said ETF by buying sufficient units of beneficiary certificates for itself or on behalf of its customers under the same account, or by buying such beneficiary certificates, which in combination with the original holding, borrowed beneficiary certificates, balance of beneficiary certificates bought on the previous day, and created in-kind on the previous day are sufficient
for in-kind redemption of said ETF beneficiary certificate, and then sell the portfolio of stocks represented in the ETF, the settlement of such transactions shall be effected in accordance with the following provisions:
1. The securities firm shall submit the application for same-day buying and selling to TSEC via the computer link-up on the date of transaction.
2. If the ETF beneficiary certificates sold or the portfolio of stocks represented in the ETF sold by the securities firm were not settled before 6:00PM on the first business day after the transaction date, but the securities firm has submitted the application in line with the preceding item, TSEC will prepare statement and electronic file and deliver them to the central depository to carry out relevant operations accordingly. The aforesaid operations shall override the application of Article 109 of the Operating Rules of TSEC.
3. For securities firms that sell ETF beneficiary certificates, TSEC will, on the second business day after the transaction date, notify the central depository to deliver and transfer the portfolio of stocks represented in the ETF to the securities firm after the said securities firm has settled with TSEC for the portfolio of stocks bought and other payment and charges, so said securities firm can create the same beneficiary certificates in-kind from the securities investment trust enterprise and make delivery.
4. For securities firms that sell portfolio of stocks represented in said ETF, TSEC will, on the second business day after the transaction date, notify the central depository to deliver and transfer the ETF beneficiary certificates to the securities firm after said securities firm has settled with TSEC for the beneficiary certificates bought and other payment and charges, so said securities firm can redeem the same portfolio of stocks from the securities investment trust enterprise and make delivery.
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