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Amendments

Title:

Taiwan Stock Exchange Corporation Rules Governing Trading of Beneficial Certificates  CH

Amended Date: 2021.10.08 (Articles 4-1, 10, 10-2 amended,English version coming soon)
Current English version amended on 2021.04.29 
Categories: Securities Exchange Market > Trading > Beneficial Certificates

Title: Taiwan Stock Exchange Corporation Rules Governing Trading of Beneficial Certificates(2011.08.19)
Date:
Article 12     If on a same day the amount of underlying portfolio securities of an ETF beneficial certificate purchased by a securities firm for its own account or on behalf of a single account, or the total amount of the aforementioned purchased securities plus that securities firm's original holdings and borrowings thereof and the amount of portfolio securities it purchased or acquired through in-kind redemption on the preceding day, meets the requirements for in-kind creation of that ETF beneficial certificate, and on that same day it sells the same quantity of that beneficial certificate; or if on a same day the amount of ETF beneficial certificates that a securities firm purchases for its own account or on behalf of a single account, or the total amount of the aforementioned purchased certificates plus that securities firm's original holdings and borrowings thereof and beneficial certificates it purchased or acquired through in-kind creation on the preceding day, meets the requirements for in-kind redemption of the underlying portfolio securities of that ETF beneficial certificate, and on that same day it sells the same quantity of those underlying portfolio securities; then that securities firm's settlement, and subsequent related matters, shall be conducted according to the following provisions:
  1. On the transaction date, the securities firm, via computer link, shall report to the TWSE and submit an application to postpone settlement.
  2. If the securities firm reports the sale of ETF beneficial certificates or an ETF's underlying portfolio of stocks and applies to postpone settlement pursuant to the preceding subparagraph, after the TWSE has reviewed and approved the application it shall prepare a statement and transmit an electronic file thereof to the central securities depository to conduct the relevant operations accordingly. The provisions of Article 109 of the TWSE Operating Rules do not apply to the aforementioned operations.
  3. After the securities firm has completed settlement on the second business day after the transaction date for underlying securities portfolios of ETF beneficial certificates, or for beneficial certificates, that it has purchased, and for any price payable for other purchases, the portfolio securities or beneficial certificates receivable by it shall be transferred to serve as collateral for the postponed settlement, and the TWSE will notify the central securities depository to thereupon apply to the SITE for the in-kind creation of that beneficial certificate, or in-kind redemption of that beneficial certificate's underlying portfolio securities to unwind the position.
  4. If the securities portfolio underlying an ETF beneficial certificate listed for trading on the GreTai Securities Market (GTSM) includes exchange-listed securities, after the TWSE receives notification from the GTSM regarding the portion of listed securities sold by the securities firm, the TWSE shall prepare a statement for that portion and transmit an electronic file thereof to the central securities depository pursuant to subparagraph 2.

    The provisions of the preceding paragraph do not apply to ETF beneficial certificates with foreign component securities.
    When a securities firm conducts creation of ETF beneficial certificates with foreign component securities for its own account or on behalf of its customers, the beneficial certificates may be sold on the business day preceding the day when they are registered with the central securities depository. When a securities firm conducts creation of domestic component securities ETF beneficial certificates for its own account or on behalf of its customers, except under the circumstances set out in paragraph 1, the beneficial certificates may be sold on the business day next following the creation.