| Title： |
Taiwan Stock Exchange Corporation Rules Governing Trading of Beneficial Certificates(2017.02.08) |
| Date： |
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Article 6
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The minimum lot size for trading beneficial certificates shall be represented by one trading unit or its integer multiples, where one trading unit equals 1,000 beneficial units. The trading unit of offshore ETF beneficial certificates may be determined by offshore fund entities. The trading unit of underlying ETF beneficial certificates may be determined by SITEs.
Fractions of a trading unit are governed mutatis mutandis by the TWSE Regulations Governing Odd-Lot Trading of Listed Shares.
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Article 9
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The calculation basis for the price fluctuation limits on beneficial certificates except offshore ETF beneficial certificates for the first day of listing are determined on the business day before listing in accordance with the following rules:
- For a securities investment trust fund offered by a securities investment trust enterprise, the net asset value per unit of beneficial interest on the most recent business day, obtainable by calculation pursuant to Article 72 of the Regulations Governing Securities Investment Trust Funds.
- For a futures trust fund offered by a futures trust enterprise, the net asset value per unit of beneficial interest on the most recent business day, obtainable by calculation pursuant to Article 76 of the Regulations Governing Futures Trust Funds.
- For a real estate investment trust fund established by a trustee institution, the net asset value per unit of beneficial interest calculated according to the provisions of the real estate investment trust contract.
- For an underlying ETF beneficial certificate, the ratio of its trading units to the trading units of the beneficial certificates mentioned in Article 2, paragraph 1, subparagraph 2, item 1 and the net asset value per unit of beneficial interest on the most recent business day as converted at the exchange rate.
With respect to the beneficial certificates referred to in the preceding paragraph, the auction reference price at market opening on the first day of listing shall be the price arrived at by processing the calculation basis set under the same paragraph, pursuant to Article 7, paragraphs 2 and 3 herein.
With respect to offshore ETF beneficial certificates, the auction reference price at market opening 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 7, paragraph 2 herein.
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Article 10
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Any beneficial certificate trade for which gains are distributed by the SITE pursuant to Article 77 of the Regulations Governing Securities Investment Trust Funds, the futures trust enterprise pursuant to Article 78 of the Regulations Governing Futures Trust Funds, or the REIT fund established by the trustee institution pursuant to the REIT contract, and for which settlement is conducted after the date of suspension of changes to entries in the register of beneficial owners, shall be an ex-dividend transaction.
On the commencement date of ex-dividend trading, the price fluctuation limits for those trades shall be calculated based on the previous day's closing price minus the dollar amount of distributed gains, and the auction reference price at market opening shall be the price arrived at by processing the previous day's closing price, minus the dollar amount of distributed gains, pursuant to Article 7, paragraphs 2 and 3 herein.
When there is no previous day's closing price on the commencement date of ex-dividend trading, the closing price used as the basis for the calculations referred to in paragraphs 1 and 2 shall be replaced with the price determined by the principles laid down in Article 58-3, paragraph 2, subparagraph 2 of the TWSE Operating Rules.
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Article 12
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A securities firm shall sign the relevant agreements with the SITE before it may begin to conduct procedures relevant to the creation or redemption of securities investment trust ETF beneficial certificates 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, conducted for its own account or on behalf of its customers, of beneficial certificates of ETFs except those of offshore ETFs to the TWSE.
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 the itemized information on any transfers.
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Article 19
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The beneficial certificates in Article 2, paragraph 1, subparagraph 2, item 1 and their underlying ETF beneficial certificates may be swapped with each other at the ratio of one trading unit to one trading unit.
If a principal applies to a securities broker for swapping, the TWSE will seek confirmation from a central securities depository that the amount sought in the application is less than or equal to the balance available in the custodial book-entry account and, upon such confirmation, advise the securities firm in response of the success of the swap application.
The swap time is between 8:30 A.M. and 5:00 P.M.
No swap application is allowed in respect of the beneficial certificates in paragraph 1 if they are used for purchasing and borrowing positions by way of margin purchase.
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Article 24
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These Rules shall take effect after having been submitted to and approved for recordation by the competent authority. Subsequent amendments thereto shall be effected in the same manner.
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