Taiwan Stock Exchange - Rules & Regulations Directory

Amendments

Title:
Taiwan Stock Exchange Corporation Directions for Announcement or Notice of Attention to Trading Information and Dispositions(2005.03.22)

6
Where the TSEC has announced trading information for a particular security pursuant to Point 4, paragraph 1, subparagraphs 1-9 for a period of five consecutive business days, or for any six business days with the most recent 10-day period, or for any 12 business days within the most recent 30-day period, the TSEC will simultaneously adopt the following measures within 5 business days of the next business day after the condition occurs:
(1) Conducting trade matching for the securities with manually controlled trade matching terminals (matching approximately every five minutes, or for full-cash delivery stocks, every ten minutes).
(2) Notifying securities brokers that when an investor's daily volume of trading orders for the security during the given period consists of a single trade of 100 trading units or multiple trades with an aggregate total of 300 trading units or more, they shall collect from the investor a minimum of 50 percent of the buy-side price or sell-side securities for trades already consigned that day; for margin trading, they shall collect in full the margin for the purchase or the short sale. For further trading orders in excess of the aforementioned amounts on the same day, 50 percent of the buy-side price or sell-side securities shall also be collected, and for margin trading, the margins shall also be collected in full, provided that this shall not apply at the time of liquidation of margin trades. 
When measures under the preceding paragraph have been announced for a particular security within the most recent 30 business days, then upon a second announcement of measures pursuant to the same standards, the TSEC will simultaneously adopt the following measures within 5 business days of the next business day after the occurrence:
(1) Conducting trade matching for the securities with manually controlled trade matching terminals (matching approximately every ten minutes).
(2) Notifying securities brokers that when an investor's daily volume of trading orders for the security during the given period consists of a single trade of at least 50 trading units or multiple trades of 150 trading units or more, they shall collect from the investor in full the buy-side price or sell-side securities for trades already consigned that day; for margin trading, they shall collect in full the margin for the purchase or the short sale. For further trading orders in excess of the abovementioned amounts on the same day, 50 percent of the buy-side price or sell-side securities shall also be collected, and for margin trading, the margins shall also be collected in full, provided that this shall not apply at the time of liquidation of margin trades.
When measures are announced for a particular security pursuant to paragraph 1 or 2 herein and reasons for announcement include circumstances under Point 4, paragraph 1, subparagraph 8, or the TSEC further announces trading information pursuant to the aforementioned subparagraph 8 during the period of disposition, or when the TSEC deems that there is a securities trading irregularity with the likelihood of a significant impact on the security of settlements in the market, it shall report to the Surveillance Operations Oversight Committee for discussion; upon a resolution by the Surveillance Operations Oversight Committee, it may adopt the following disposition measures:
(1) The measures under paragraphs 1 and 2 of this Point; provided that these may be adjusted when necessary, as follows:
i. The time at which trade matching of the security is done using manually controlled trade matching terminals.
ii. Whether, when the investor places the order for the security involved in the irregular trading, there is advance collection of all or a specific proportion of the buy-side price, sell-side securities, margin for margin purchase, or margin for short sale.
iii. The effective period of the measures.
(2) Amounts of reported daily sales or purchases of the given security may not exceed NT$60 million by the head office of any securities firm or NT$10 million by a branch office of any securities firm; when necessary, the amounts of reported daily sales or purchases of the given security at the head offices and branch offices of securities firms may be adjusted based on the current trading in that security, its market value, or the capitalization of the issuing company. Provided, this shall not apply at the time of liquidation of margin trades.
(3) Other measures adopted by resolution of the Surveillance Operations Oversight Committee.
Measures for disposition under subparagraph 2 of the preceding paragraph may also be adopted pursuant to a resolution of the special management committee of the Joint Responsibility System Clearing and Settlement Fund, which may also prescribe the period of disposition.
When there are successive, sharp increases or decreases in the market price of a security such that other securities undergo corresponding abnormal fluctuations in price and there is a likelihood that such conditions would be prejudicial to market order or the public interest, or when any other irregularity occurs with respect to a security that is clearly prejudicial to market order or the public interest, the TSEC may, upon resolution by the Surveillance Operations Oversight Committee, report to the competent authority requesting that a halt in trading of the given security be approved for a specified time period.
When disposition measures are adopted with respect to trading in a given security by resolution of the Surveillance Operations Oversight Committee or the special management committee of the Joint Responsibility System Clearing and Settlement Fund, the number of days on which trading information is announced prior to implementation of the measures or during the effective period of the disposition need not be counted under paragraphs 1 and 2 of this Point.

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