| Title： |
Directions for Reporting and Handling of Out-Trades and Account Number Corrections by Securities Brokers(2006.06.08) |
| Date： |
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2
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Procedures for reporting out-trades and account number corrections:
Securities brokers shall report out-trades and account number corrections on the trade date or the next business day in accordance with the following rules:
(1) Reporting through computer transmission:
(i) Period for entering information:
Securities brokers shall enter information relating to an out-trade or account number correction into the computer of the TSEC beginning from 9 a.m. on the trade date. Entry must be completed by no later than 6 p.m. of the next business day. However, where the securities broker is on record as having already made a settlement postponement report, entry shall be completed by 6 p.m. on the third business day from the trade date.
(ii) Handling of breakdowns:
When accidental breakdowns prevent transmission of information over the computer transmission lines, the securities broker shall first report the breakdown to the TSEC by telephone, and re-enter the information after elimination of the problem.
(iii) When the occurrence of a natural disaster results in an announcement of cancellation of work for government offices or schools by county or city governments, reporting by computer transmission by securities brokers within the affected area shall be undertaken in accordance with the provisions for handling of settlement matters due in the Taiwan Stock Exchange Corporation Measures for Market Closing or Trading During Natural Disasters.
(2) Written reports:
When the electronic reporting of out-trades or account number corrections by a securities broker for the same investor on the same trade date reaches a total transaction amount of NT$10 million or more, or total shares (in beneficiary units) of 400,000 shares or more, the broker shall produce an "Out-Trade Handling Report - Occurrence" (Form 1) or an "Investor Account Number Correction Report" (Form 2), and shall also attach a report on the reasons for the out-trade or an application for correcting the account number with a copy of the order form, order confirmation, and execution report for that particular trade stamped with the seal of the company, the company's responsible person, and the party holding the account in question, for submission to the trading department of the TSEC. Submission shall be made, at the latest, prior to 5:00 p.m. on the first business day following the date of transaction. Where the error was attributable to alteration of the account number by the investor, an "Application for Account Number Correction" (Form 3) showing the account numbers before and after correction, and agreed upon between the investors, shall also be submitted.
(3) The securities broker shall prepare a ledger showing corrections to account numbers for review by higher official bodies, and shall retain a copy for their files.
(4) The securities broker shall open a special error account at its place of business for the repurchasing and re-selling of stock connected with handling of out-trades. Trades made through that error account may not be changed to appear as trades through an investor's account, nor may trades through an investor's account be changed to appear as trades through the error account.
(5) Where an out-trade or account number correction occurs in securities trading by a securities broker through an omnibus account, the report of the out-trade or account number correction may not be based on the omnibus account. The report of the out-trade or account number correction shall be based on the post-allocation securities trading account of the individual principal.
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