| Title： |
Operating Rules of the Taiwan Stock Exchange Corporation(2006.10.19) |
| Date： |
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Article 28-1
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Where the total of brokerage or dealer trading orders placed by a securities firm in a single day exceeds twenty times its net funds available for use, this Corporation may suspend the placing of additional trading orders.
Where the net worth of a securities firm is below its paid-in capital but more than fifty percent thereof, the multiple referred to in the preceding Paragraph may be adjusted to ten times. Where the net worth is less than fifty percent of the paid-in capital, the multiple may be adjusted to five times. Where the net worth is less than fifty percent of the paid-in capital for three consecutive months, the multiple may be adjusted to two times. Where the regulatory capital adequacy ratio of the securities firm is lower than the amount specified in Article 65 of the Rules Governing Securities Firms, the multiple referred to in the preceding paragraph may be adjusted to fifteen times. Where the regulatory capital adequacy ratio of the securities firm is lower than the amount specified in Article 66 of the Rules Governing Securities Firms, further downward adjustment may be made. The criteria for such adjustment shall be separately prescribed by this Corporation. However, when its monthly statements show that the
reason for adjustment has been extinguished, the multiple may be adjusted based on the extent of extinction; and where the ratio of a securities firm's net worth to its paid-in capital increases as a result of a capital reduction, its regulatory capital adequacy ratio must simultaneously increase before its multiple may be adjusted pursuant to the above-cited provisions. The method of calculation of the net funds available for use referred to in Paragraph 1 shall be prescribed by this Corporation.
If for three consecutive months, the financial ratio as shown in the monthly statements of a securities firm fails to satisfy the requirements of Article 13 or Article 16 of the Regulation Governing Securities Firms, and the Competent Authority issues the first notice of improvement to be made within a time period, but no improvement is made, this Corporation may adjust the multiple referred to in Paragraph 1 to fifteen times; upon the second notice of the Competent Authority to improve within a time period, but no improvement is made, the multiple may be adjusted to ten times; for each additional notice by the Competent Authority to improve within a time period, but no improvement is made, the multiple may be adjusted to half the previous multiple as the total amount of trading for customers' account and its own account. After the above adjustments, the highest allowable amount shall not exceed four times the net worth. Once improvement is made, the original multiple shall be restored.
In the event any securities firm falls within any of the categories under Article 3 of the Rules for Assistance to and Examination of Securities Firm of this Corporation, or subsequent to assistance, improvements cannot be made, this Corporation may lower the multiple referred to in Paragraph 1. Where improvement has been made, the original multiple shall be restored.
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