| Title： |
Taiwan Stock Exchange Corporation Rules Governing Block Trading of Listed Securities(2007.06.27) |
| Date： |
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Article 10
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The trading periods for paired trades are from 9:30 a.m. to 9:50 a.m., 11:30 a.m. to 11:50 a.m., and 1:35 p.m. to 5 p.m.
A quote for a paired trade is valid during all trading periods that same day and, prior to execution, the original quote for a current paired trade may be canceled during any trading period; provided, that a quote for settlement on the transaction date is only valid until 1:50 p.m. that same day.
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Article 12
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Placement of quotes for paired trades will be temporarily suspended on an ex-dividend or ex-rights date and the next business day thereafter, and on trading days on which no price fluctuation limit is imposed under Article 63, paragraph 2 of the TSEC Operating Rules.
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Article 18
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Where a block trade is settled on the transaction date, settlement prices and securities that are receivable or deliverable will be settled in accordance with the following provisions:
1. A securities firm required to pay a settlement price shall remit the amount payable by 2:30 pm into the bank account designated by the TSEC. Where a securities firm is required to deliver securities, the TSEC will notify the central securities depository to carry out book-entry transfer procedures.
2. For a securities firm to which a settlement price is owed, the TSEC will notify the designated bank after 2:30 pm to remit the amount into its account; for a securities firm to which securities are owed, after the payable settlement price referred to in the preceding subparagraph has been paid and the TSEC has checked and verified completion thereof, the TSEC will notify the central securities depository to carry out book-entry transfer procedures.
If a seller's securities firm is unable to complete settlement obligations because of default by the seller, an out-trade, or some other legitimate reason, after it files a report, the TSEC will produce a statement and electronic file and transmit them to the central securities depository to carry out related procedures. The seller's securities firm shall calculate collateral in an amount equal to 120 percent of the amount obtained by multiplying the closing price of those securities on the transaction date by the volume reported; the collateral shall be incorporated into the calculation of the given day's settlement prices receivable or deliverable for block trading to be settled on the transaction date, and settlement shall be performed on a netting basis in accordance with paragraph 1.
If a securities firm fails to perform settlement in accordance with paragraph 1, subparagraph 1, the TSEC will impose a delinquency penalty of NT$30,000 for a delay of an hour or less, and an additional NT$10,000 for each additional hour's delay.
Failure by a securities firm to perform settlement by the prescribed time will be deemed default on settlement obligations, but this does not apply where settlement is completed within banking hours on the current day.
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