| Title： |
Operating Rules of the Taiwan Stock Exchange Corporation(2016.02.24) |
| Date： |
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Article 79
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Trading orders accepted by securities brokers shall be confined to limit orders. Provided, a securities firm may accept authorization from a juristic person, other institutions or specific natural persons to decide on its behalf the price and time of placement of an order within the range of the price limits specified by such juristic person, institution or natural person; when placing quotes for trades, the securities broker shall consider the market conditions and the supply-demand relationship, and take care not to damage the formation of fair prices in the market and the sound development of the market, and the securities broker shall retain the customer authorization record in accordance with regulations.
"Specified natural person" in the preceding paragraph means a natural person who simultaneously meets all of the following conditions:
- Provides proof of financial capacity of NT$50 million or more.
- Possesses adequate professional knowledge or trading experience with respect to financial products.
- Issues a signed statement specifying that a registered qualified associated person of the securities firm has explained in detail to him/her the rights, obligations, and risks requiring attention in connection with discretionary orders, and confirming that he/she has been fully advised of and understood the same and agrees to sign as a specified natural person.
"Possesses adequate professional knowledge or trading experience with respect to financial products" in subparagraph 2 of the preceding paragraph means that the person meets one of the following conditions:
- The person has in the past held a position at a securities, futures, financial, or insurance institution, or has other academic qualifications or work experience sufficient to prove possession of professional knowledge of securities.
- The person simultaneously meets all of the following condictions:
- At least six months have elapsed since the person opened the account.
- The person provides proof of the number of his/her trades on the securities market for the most recent year having reached 20; the same shall apply in the case where 1 year has not elapsed since the person opened the account.
- The person has never had any record of default in securities trading.
Where an order referred to in paragraph 1 is made without specifying the term of validity, such order shall be effective only on the date of the order.
A "limit order" shall mean that the principal engages a securities broker to place a trading order on its behalf and specifies a price limit wherein the trade price may be equal to or lower than the limit price in the case of a purchase, and may be equal to or higher than the limit price in the case of a sale.
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