| Title： |
Taiwan Stock Exchange Corporation Operation Directions Governing Liquidity Providers of Call (Put) Warrants(2018.02.14) |
| Date： |
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A liquidity provider shall, starting from 5 minutes after the TWSE centralized exchange market opens until the market closes, perform its quoting obligations by means of "responding to quote requests" or "voluntary quoting"; the operational guidelines are as follows:
- Responding to quote requests
- A liquidity provider shall, within 5 minutes after receiving an investor's price inquiry, respond with a quote, and this quote shall remain posted for at least 1 minute.
- No single bid quote for warrants may be for less than 100 trading units, or the total amount of any bid quote shall be for NT$100,000 or more. Under any of the following circumstances, however, this restriction need not apply, provided that the quote may not be for less than 10 trading units:
- When there is insufficient liquidity in spot shares.
- When the underlying security is a stock placed under disposition measures.
- During the period from 5 minutes to 15 minutes after market opening and the 5 minutes prior to market close.
- No single ask quote for warrants may be for less than 10 trading units.
- A liquidity provider shall make a synchronous recording of the phone call with which an investor requests a quote, and the recording shall be preserved for at least 1 year.
- Voluntary quoting:
- The price quote by a liquidity provider shall include a bid price and an ask price.
- A liquidity provider shall on its own initiative provide quotes at least once every 5 minutes, and such quotes shall remain posted for at least 30 seconds, provided that this 30-second restriction shall not apply when quotes are updated due to fluctuations in order price or order volume of the underlying.
- A liquidity provider shall prescribe the maximum price fluctuation between the highest bid price and the lowest ask price as 10 units.
- No single bid quote for warrants may be for less than 100 trading units, or the total amount of any bid quote shall be for NT$100,000 or more. Under any of the following circumstances, however, this restriction need not apply, provided that the quote may not be for less than 10 trading units:
- When there is insufficient liquidity in spot shares.
- When the underlying security is a stock placed under disposition measures.
- During the period from 5 minutes to 15 minutes after market opening and the 5 minutes prior to market close.
- No single ask quote for warrants may be for less than 10 trading units.
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A liquidity provider need not provide quotes at the following times:
- during the initial 5 minutes after opening of the centralized securities exchange market;
- during any suspension of trading of the underlying of the warrants;
- when the number of warrants in the liquidity provider's segregated account cannot meet the minimum number of units required for a single ask quote, the liquidity provider may only provide a bid quote.
- other times as prescribed by the issuer at its own initiative.
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