• Font Size:
  • S
  • M
  • L
友善列印
WORD

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(2014.07.04)
Date:
Article 2     The term "beneficial certificate" as used in these Rules includes:
  1. Any beneficial certificate for an offering of a closed-end securities investment trust fund issued by a securities investment trust enterprise (SITE) pursuant to the Regulations Governing Securities Investment Trust Funds.
  2. Any beneficial certificate for an offering of an exchange-traded securities investment trust fund ("ETF beneficial certificates") offered by a SITE pursuant to the Regulations Governing Securities Investment Trust Funds. If the component securities of the underlying index of such fund are all domestic securities, the fund is referred to as a domestic component securities ETF; if one or more component securities of the underlying index are foreign securities, or the fund is an ETF under Article 37 paragraph 4 of the Regulations Governing Securities Investment Trust Funds ("linked ETF"), the fund is referred to as an ETF with foreign component securities.
  3. Any beneficial certificate, fund share or investment unit issued for an offering of offshore ETFs issued by an offshore fund manager, or its designated institution ("offshore fund entity") pursuant to the Regulations Governing Offshore Funds ("offshore ETF beneficial certificates").
  4. Any beneficial certificate issued by a trustee institution for the establishment of a real estate investment trust (REIT) fund pursuant to the Real Estate Securitization Act.
  5. Any beneficial certificate issued by a futures trust enterprise, in accordance with the Regulations Governing Futures Trust Funds, for the offering of an exchange-traded futures trust fund ("futures ETF beneficial certificate").
Article 3     Book-entry settlement of ETF beneficial certificates, futures ETF beneficial certificates, and offshore ETF beneficial certificates listed for trading on the TWSE's centralized securities exchange market shall be conducted by a central securities depository, and the trustor may not apply to withdraw those beneficial certificates.
    The first time a principal places an order for trading of futures ETF beneficial certificates, the securities firm may only accept the order after the principal has signed a risk disclosure statement. The matters that must be set out in the risk disclosure statement will be separately prescribed by the TWSE.
Article 4-1     When the original market on which the offshore ETF beneficial certificates circulate is closed, the beneficial certificates will continue to be traded on the TWSE central market.
    When the original market on which the foreign securities represented by the ETF beneficial certificates with foreign component securities is closed, the beneficial certificates will continue to be traded on the TWSE central market.
     When the original market on which the foreign futures contracts represented by the futures ETF beneficial certificates is closed, the beneficial certificates will continue to be traded on the TWSE central market.
Article 6     Qote information consists of the bid and offer price per beneficial unit.
    The minimum tick size of ETF beneficial certificates, futures ETF beneficial certificates, offshore ETF beneficial certificates, and real estate investment trust beneficial securities is one cent, or NT$0.01, for beneficial units quoted less than NT$50, and five cents, or NT$0.05, for beneficial units quoted at more than or equal to NT$50.
    Provisions regarding minimum tick sizes for beneficial certificates other than those specified in the preceding paragraph are subject mutatis mutandis to the minimum tick size rules for listed stock prices.
Article 7     The relevant daily price fluctuation limit provisions for listed stocks shall apply mutatis mutandis to beneficial certificates after they are listed, provided that no price fluctuation limits are imposed on ETF beneficial certificates with foreign component securities, futures ETF beneficial certificates that track a foreign commodities futures index, and offshore ETF beneficial certificates.
Article 8     With respect to the beneficial certificates referred to in Article 2, paragraph 1, subparagraphs 1, 2, 4, and 5 of these Rules, the reference price, based on which the price fluctuation limits for competitive auction trading on the first day of listing are determined, shall be respectively set according to the following provisions by using the net asset value per unit of beneficial interest on the day before listing as the reference datum:
  1. For a securities investment trust fund issued by a securities investment trust enterprise, calculation shall be performed pursuant to Article 72 of the Regulations Governing Securities Investment Trust Funds.
  2. For a futures trust fund issued by a futures trust enterprise, calculation shall be performed using the figure obtainable by calculation pursuant to Article 76 of the Regulations Governing Futures Trust Funds.
  3. For a real estate investment trust fund established by a trustee institution, calculation shall be performed according to the provisions of the real estate investment trust contract.
    With respect to the beneficial certificates referred to in Article 2, paragraph 1, subparagraphs 1, 2, 4, and 5 of these Rules, the auction reference price at market opening for competitive auction trading on the first day of listing shall be the price arrived at by processing the reference price set under paragraph 1, pursuant to Article 6, paragraphs 2 and 3 herein.
    With respect to offshore ETF beneficial certificates, the auction reference price at market opening for competitive auction trading on the first day of listing shall be the price arrived at by processing the latest net asset value per unit of the offshore fund, during TWSE business hours on the day before listing as published by the representing master agent of the offshore fund pursuant to Article 14 of the Regulations Governing Offshore Funds, pursuant to Article 6, paragraph 2 herein.
Article 11     A securities firm shall sign the relevant agreements with the SITE before it may begin to conduct creation or redemption of ETF beneficial certificates, whether in kind or through delivery by a method specified in the securities investment trust contract, for its own account or on behalf of its customers.
    A securities firm that carries out operations for creation or redemption of futures ETF beneficial certificates for its own account or on behalf of customers may do so only after entering into a relevant contract with the futures trust enterprise.
    A securities firm shall sign the relevant agreements with the offshore fund institution before it may begin to conduct creation or redemption of offshore ETF beneficial certificates for its own account or on behalf of its customers.
    A securities firm shall report any creation or redemption operations of domestic component securities ETF beneficial certificates to the TWSE. The guidelines for such reporting will be separately prescribed by the TWSE. A securities firm shall report any creation or redemption operations of ETF beneficial certificates with foreign component securities or futures ETF beneficial certificates to the central securities depository, which shall transmit the information on creation and redemption to the TWSE. The guidelines for such reporting shall be separately prescribed by the central securities depository.
    The reporting operations specified in the preceding paragraph do not apply to the creation or redemption operations of offshore ETF beneficial certificates, but the central securities depository shall nevertheless transmit to the TWSE a statement of the information submitted to in the reporting operations.
    A securities firm that signs relevant agreements under paragraph 1, 2 or 3 with the SITE, the futures trust enterprise, or the offshore fund institution is referred to as a participating dealer. The criteria for a participating dealer are separately prescribed by the TWSE.
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 or futures ETF beneficial certificates 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.
    When a securities firm carries out creation of ETF beneficial certificates for an offshore exchange-traded fund, those ETF beneficial certificates may only be sold after registration and account entry with the central securities depository and confirmation of the same by the securities firm.
Article 13     A SITE that issues ETF beneficial interest certificates, a futures trust enterprise that issues futures ETF beneficial certificates, or an offshore fund institution that issues offshore ETF beneficial certificates, may designate a liquidity provider to provide liquidity when the certificate is traded on the centralized market of the TWSE. The relevant operational guidelines shall be adopted separately by the TWSE.