| Title： |
Taiwan Stock Exchange Corporation Rules Governing Block Trading of Listed Securities(2008.04.10) |
| Date： |
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Article 2
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A block trade may only be conducted as either a non-paired trade or a paired trade.
A block trade may not involve margin purchase or short sale.
The settlement date of a block trade may be either the transaction date or the second business day after the transaction date.
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Article 3
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The volume, type, and dollar amount of a bid or ask quote placed by a securities firm shall comply with the following provisions:
1. A block trade of a single security shall be for 500 or more trading units of a listed security.
2. A block trade of a basket of stocks shall be for five or more listed stocks, and the total dollar amount shall be NT$15 million or more.
Even if the criterion in subparagraph 1 of the preceding paragraph is not met, a block trade of a single security may still be carried out for a single quote for a purchase or sale with a total dollar amount of NT$15 million or more.
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Article 3-1
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Quotes of volume for block trades are not required to be for single trading units or integral multiples thereof; they may be for single shares or integral multiples thereof.
The tick increment of price quotes for block trades is one cent.
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Article 5
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Trading periods for non-paired trades are 9:30 a.m. to 9:50 a.m., 11:30 a.m. to 11:50 a.m., and 1:35 p.m. to 1:50 p.m.
The permissible price range for bid and ask quotes for non-paired trades is limited to 7 percent above or below the auction reference price at market opening of the current trading session, and must comply with the provisions of Article 62 of the TSEC Operating Rules concerning tick increment.
The "auction reference price at market opening of the current trading session" of the preceding paragraph is set either through the mutatis mutandis application of the provisions of Article 58-3, paragraph 1, subparagraph 3 of the TSEC Operating Rules, or of the provisions of Article 59-1 and Article 67-1 of those same Operating Rules.
A quote for a non-paired trade is valid in each of the trading periods on the day in which it is placed, and the quote may be cancelled in any of those trading periods prior to execution.
Placement of quotes for non-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 8
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Quotes for non-paired block trades of a single security will be continuously matched and executed against quotes with the same settlement date. Matching priority and execution price for individually placed bid quotes or ask quotes are handled according to the following principles:
1. If the current bid quote is priced at or above the lowest previously placed ask quote, it will be matched and executed against individual asks sequentially from lowest to highest; if multiple ask prices are identical they will be matched and executed sequentially by time priority until the current bid quote is completely satisfied or the price of the current bid quote is lower than the prices of unexecuted ask quotes.
2. If the current ask quote is priced at or below the lowest previously placed bid quote, it will be matched and executed against individual bids sequentially from highest to lowest; if multiple bid prices are identical they will be matched and executed sequentially by time priority until the current ask quote is completely satisfied or the price of the current ask quote is higher than the prices of unexecuted bid quotes.
The current bid (or ask) quote for a non-paired block trade of a basket of stocks will be matched and executed against previously placed ask (or bid) quotes in order of time priority, on the condition that the settlement date, stock codes, unit prices, and volumes of the current bid (or ask) quote must all be identical to those of the previously placed ask (or bid) quotes;.
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Article 11
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The permissible price range for a quote on a paired trade is restricted to 7 percent around the auction reference price at market opening of the current trading session; and must comply with the provisions of Article 62 of the TSEC Operating Rules concerning tick increment.
The "auction reference price at market opening of the current trading session" of the preceding paragraph is set either through mutatis mutandis application of the provisions of Article 58-3, paragraph 1, subparagraph 3 of the TSEC Operating Rules, or in accordance with the provisions of Article 59-1 and Article 67-1 of those same Operating Rules.
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