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Numerical Standards for and Exceptions to the Irregularity Standards in Article 4 of the Taiwan Stock Exchange Corporation's Directions for Announcement or Notice of Attention to Trading Information and Related Dispositions(2014.04.09) |
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Article 2
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The expression "an irregularity in the cumulative percentage of increase or decrease in the closing price of a security during the most recent period" as used in Article 4, paragraph 1, subparagraph 1 of the Directions shall mean that any of the following occurs to a particular security on a given day:
- The cumulative percentage of increase or decrease in the closing price of that security for the most recent 6 business days (inclusive of the given day) is greater than 32 percent, while differing with the average values for both the market as a whole and for same-sector securities, as calculated in accordance with this paragraph, by 20 percent or more.
- The cumulative percentage of increase or decrease in the closing price of that security for the most recent 6 business days (inclusive of the given day) is greater than 25 percent, while differing with the average values for both the market as a whole and for same-sector securities, as calculated in accordance with this paragraph, by 20 percent or more, and the difference between the closing prices of that security for the initial and final days of the most recent 6 business days (inclusive of the given day) is NT$50 or more.
Exceptions to the preceding paragraph are as follows:
- The percentages of increase or decrease in the closing prices of newly-listed common stocks for which there is a period of no restrictions on price fluctuations shall not be included in the calculations of numerical standards under this paragraph.
- When non trade-related factors (such as ex-rights or ex-dividend factors) have caused fluctuations in the price of a security or an index during the period for which standards under the preceding paragraph are calculated, those factors shall be excluded when calculating the percentage of increase or decrease in the closing price or the closing index.
- The standards of the preceding paragraph shall not apply when the closing price of a security (excluding call (put) warrants) is less than NT$5.
- The provisions of the preceding paragraph regarding same-sector securities shall not apply when there are fewer than five securities in a given sector.
- The provisions of the preceding paragraph regarding same-sector securities shall not apply when a security has a negative price-to-earnings ratio or is trading at 60 times earnings or above.
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Article 8
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The expression "a significantly high cumulative turnover rate for the most recent period" as used to in Article 4, paragraph 1, subparagraph 7 of the Directions shall mean that the particular security meets both of the following conditions on a given day:
- The cumulative total turnover rate for the most recent 6 business days (inclusive of the given day) exceeds 50 percent, while there is a difference of 40 percent or more between the cumulative total turnover rate and the average value for the market as a whole, as calculated in accordance with this subparagraph.
- The intraday turnover rate is 10 percent or more, while there is a difference of 5 percent or more between the turnover rate and the average value for the market as a whole, as calculated in accordance with this subparagraph.
Exceptions to the preceding paragraph are as follows:
- The daily turnover rate of newly-listed common stocks for which there is a period of no restrictions on price fluctuations shall not be included in the calculations for the standards under the preceding paragraph.
- These standards under the preceding paragraph shall not apply to convertible corporate bonds, corporate bonds with non-detachable warrants, preferred stocks with non-detachable warrants, bond conversion entitlement certificates, call (put) warrants, and stock warrants.
- The standards under the preceding paragraph shall not apply when during the most recent 6 business days (inclusive of the given day), trading information for the given security has been announced pursuant to Article 4, paragraph 1, subparagraph 4.
- The standards under the preceding paragraph shall not apply when the monetary value of confirmed transactions in the given security on the given day is less that NT$500 million.
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Article 9
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The expression "an irregular price-to-earnings rate, price-to-book ratio, and unusually high intraday turnover, combined with any one of the three circumstances: a relatively high price-to-book ratio for stocks of the given industry, an intraday value for confirmed purchases or sales of the given security at any single securities firm that accounts for an unusually high proportion of the total intraday value of confirmed trades in the given security, or an intraday value for confirmed purchases or sales of the given security by any single investor that accounts for an unusually high proportion of the total intraday value of confirmed trades in the given security" as used in Article 4, paragraph 1, subparagraph 8 of the Directions shall mean that the particular security meets each of the following conditions on a given day:
- The security has a negative price-to-earnings ratio or is trading at 60 times earnings or higher, while exceeding the weighted average value for the price-to-earnings ratios of all units issued in the market as a whole on the given day by two times or more.
- The security has a price-to-book ratio of 6.0 or more, while exceeding the weighted average value for the price-to-book ratios of all units issued in the market as a whole on the given day by a factor of two or more.
- The intraday turnover rate is 5 percent or higher, with a volume of trade of 3,000 trading units or more.
- The security meets any one of the following three conditions:
- The price-to-book ratio is greater than the average value of price-to-book ratios of all same-sector securities, weighted by units issued as of the given day, by four times or more.
- The monetary value of confirmed purchases or sales of the given security (including orders accepted and trading done on the firm's own accounts) at a securities firm on the given day account for 10 percent or more (if the securities firm has branch offices, an additional 1 percent may be added for each branch office; the combined total may not exceed 25 percent) of the total monetary value of confirmed trades in the given security, while also reaching NT$100 million or more.
- The monetary value of confirmed purchases or sales of the given security by any single investor on the given day accounts for 10 percent or more of the total monetary value of confirmed trades in the given security on the given day, while also reaching NT$100 million or more.
Exceptions to the preceding paragraph are as follows:
- The transaction prices of newly-listed common stocks for which there is a period of no restrictions on price fluctuations shall not be included in calculation of the standards under the preceding paragraph.
- The standards under the preceding paragraph shall not apply to securities other than common stocks.
- For trades of a security made under the TWSE's Regulations Governing Bulk-lot Trades, the transaction amount shall be deducted when calculating the standards according to subparagraph 3 and items 2 and 3 of subparagraph 4 of the preceding paragraph.
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