Amendments


Title： Taiwan Stock Exchange Corporation Regulations Governing Auction of Listed Securities by Consignment(2007.04.02)
Date：
Article 3   Bids shall be submitted between 3:00 and 4:00 PM; transactions shall be completed on the day of the bid, provided that when an auction principal entrusts a securities broker to apply to the Corporation to auction securities, while the listed company whose securities are being auctioned is at the same time participating in the issuance of overseas depositary receipts by a depositary institution in which the underlying securities are those held by the auction principal, auction transactions shall be completed on the first business day after the day of the bid.
Securities auctions on the Corporation's Exchange shall be conducted via automated computer systems. Bidding is limited to securities firms using this Exchange.
Securities brokers who submit bids shall do so on behalf of their consignment principals, provided they may not accept bidding consignments from auction principals. The consignment particulars shall comply with the Criteria Governing Consignment Contracts of Securities Brokers. The execution of a new account contract is also required.
Article 7   Auction principals shall choose from one of the following methods as the basis of the cut-off price, and shall notify the Corporation for announcement pursuant to Paragraph 3, Article 2:
1. Where bidding securities firms enter bids that are higher than the announced auction base price, the cut-off price shall be the lowest bid at which all of the auctioned shares can be sold. The entire volume of all bids higher than the cut-off price shall be transacted at the cut-off price. If the volume of bids at the cut-off price cannot be satisfied in full, the bids shall be satisfied according to the ratio of the bid volumes until no whole lot remains. If there is a remainder, it shall be allotted in the order of a computer-generated random sequence, with only one lot allotted to each consignment. However, when the volume of bids above the auction base price falls short of the auctioned volume, all bids above the auction base price shall be transacted at the lowest bid above the auction base price.
2. Where bidding securities firms enter bids that are equal to or greater than the announced auction base price, their bids shall be transacted pursuant to Article 9 if the bid volumes are less than the volume announced by the Corporation.
3. Where bidding securities firms enter bids that are higher than the announced auction base price, the entire volume of all bids higher than the base price shall be transacted at the base price when the volume is within that announced by the Corporation. When the total volume of bids above the base price exceeds the volume announced by the Corporation, the bids shall be satisfied according to the ratio of the bid volumes until no whole lot remains. If there is a remainder, it shall be allotted in the order of a computer-generated random sequence, with only one lot allotted to each consignment.
Where an auction principal is an entity releasing state-owned shares and there are special circumstances under which it cannot use the methods described in the preceding paragraph, that principal may propose an alternative auction method,which will be announced subject to approval by the competent authority.
Article 10   Successful trades shall be settled in accordance with normal settlement procedures.