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Amendments

Title:

Taiwan Stock Exchange Corporation Rules Governing Auction of Listed Securities by Consignment  CH

Amended Date: 2011.01.12 
Categories: Securities Exchange Market > Trading > Securities Transaction

Title: Taiwan Stock Exchange Corporation Regulations Governing Auction of Listed Securities by Consignment(2003.06.26)
Date:
Article 3  Bids shall be submitted between 3:00 and 3:30 PM; transactions shall be completed on the day of the bid, provided that when an auction principal entrusts a securities broker to apply to the Corporation to auction securities, while the listed company whose securities are being auctioned is at the same time participating in the issuance of overseas depositary receipts by a depositary institution in which the underlying securities are those held by the auction principal, auction transactions shall be comple
ted on the first business day after the day of the bid.
 Securities auctions on the Corporation's Exchange shall be conducted via automated computer systems. Bidding is limited to securities firms using this Exchange.
 Securities brokers who submit bids shall do so on behalf of their consignment principals, provided they may not accept bidding consignments from auction principals. The consignment particulars shall comply with the Criteria Governing Consignment Contracts of Securities Brokers. The execution of a new account contract is also required.
Article 5  When securities are auctioned pursuant to these Regulations, the Corporation may, after obtaining the consent of the applicant securities firms, announce the auction base price in its Market Information System at the time when auction begins or when bidding has been closed. When application is made for auction of securities in accordance with the proviso of Paragraph 1, Article 3, however, the time of announcement of the auction base price may be separately decided through consultation between the applic
ant securities firm and the Corporation.
 Except for the release of state-owned shares, the base price as referred to in the preceding paragraph shall be limited to within fifteen percent upward or downward of the closing price of the business day preceding the auction day. If the base price is announced at the auction venue by the applicant securities broker, the Corporation shall be informed of the price by sealed letter.
 The auction base price and the auction bids shall be expressed in units of one share.
 Securities firms may cancel or change the volume and price of their quotes during the bidding period. Application for cancellation or change shall be conducted via computers or terminals connected to the Corporation's computers.
Article 7  Auction principals shall choose from one of the following methods as the basis of the cut-off price, and shall notify the Corporation for announcement pursuant to Paragraph 3, Article 2:
 1. Where bidding securities firms enter bids that are higher than the announced auction base price, the cut-off price shall be the lowest bid at which all of the auctioned shares can be sold. The entire volume of all bids higher than the cut-off price shall be transacted at the cut-off price. If the volume of bids at the cut-off price cannot be satisfied in full, the bids shall be satisfied according to the ratio of the bid volumes until no whole lot remains. If there is a remainder, it shall be allotted
in the order of a computer-generated random sequence, with only one lot allotted to each consignment. However, when the volume of bids above the auction base price falls short of the auctioned volume, all bids above the auction base price shall be transacted at the lowest bid above the auction base price.
 2. Where bidding securities firms enter bids that are equal to or greater than the announced auction base price, their bids shall be transacted pursuant to Article 9 if the bid volumes are less than the volume announced by the Corporation.
3. Where bidding securities firms enter bids that are higher than the announced auction base price, the entire volume of all bids higher than the base price shall be transacted at the base price when the volume is within that announced by the Corporation. When the total volume of bids above the base price exceeds the volume announced by the Corporation, the bids shall be satisfied according to the ratio of the bid volumes until no whole lot remains. If there is a remainder, it shall be allotted in the or
der of a computer-generated random sequence, with only one lot allotted to each consignment.
 Where under special circumstances an auction principal cannot use the methods described in the preceding paragraph, that principal may propose an alternative auction method. Subject to acceptance by the Corporation and the approval of the competent authority, this method shall be announced and implemented.
Article 8  With respect to securities auctioned pursuant to Subparagraph 2, Paragraph 1 and Paragraph 3 of Article 7, if bids submitted by bidding securities firms are lower than the announced auction base price or the total transacted volume is less than the announced allotment, the Corporation shall announce an alternative procedure along with the base price after consulting with the applicant securities firms.
When application is made for auction of securities in accordance with the proviso of Paragraph 1, Article 3, the applicant securities firm may, after obtaining the consent of the auction principal, notify the Corporation to disclose, at any appropriate time after the bidding has been closed on the day of the auction, the total volume of bids above a specified price.