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Regulations Governing Securities Firms(2004.10.20) |
| Date： |
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Article 31
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A securities firm trading securities for its own account on the centralized securities exchange shall, in accordance with the coordination efforts of the Stock Exchange, be responsible for buying or selling at least one listed stock whose trading has not reached one trading unit.
A securities firm trading securities for its own account on the over-the-counter market shall, in accordance with the coordination efforts of the GreTai, be responsible for buying or selling one kind of stock.
A securities firm trading securities for its own account on the over-the-counter market shall, during the period while it is holding the securities, provide a quotation for selling such securities held by it.
A securities firm trading securities for its own account shall adopt a trading policy and related procedures. Except as otherwise provided by this Commission, it shall form trading decisions on the basis of analysis reports before executing trades, and shall keep records, and periodically produce review reports. It also shall establish control mechanisms, and adopt procedures for regulating changes in trading decisions.
The written materials referred to in the preceding paragraph shall be recorded in chronological order and kept in files. They shall be preserved for a period of not less than five years.
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Article 36-1
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When a department of a securities firm that concurrently operates securities investment consulting services or futures advisory services (hereinafter, collectively, "consulting services") produces research reports, personnel other than of that department shall not participate in composing or reviewing the reports.
Within two hours from the time market trading hours begin after a research report provided by a consulting services department of a securities firm is publicly disclosed, other departments and personnel apart from that department may not engage in any trading of any security recommended in the research report, unless otherwise provided by this Commission.
"Market" in the preceding paragraph refers to the domestic Stock Exchange, GreTai Securities Market, and Futures Exchange.
The compensation or bonuses paid to personnel of a consulting services department of a securities firm shall not be directly linked to the performance of any other department.
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Article 36-2
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When an underwriting department of a securities firm underwrites securities, during the period from the time the securities firm enters into an advisory contract with a public issuer until the termination of the advisory relationship, or from the time the securities firm enters into an underwriting contract with a listed or OTC-listed company until the deadline for payment, its consulting services department shall not recommend any trading of that security or any derivative financial product thereof.
When an underwriting department of a securities firm obtains securities through a firm commitment underwriting, the consulting services department of the securities firm may not recommend the purchase of those securities until all the procedures of the firm commitment underwriting have been completed in accordance with regulations.
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