Taiwan Stock Exchange - Rules & Regulations Directory
Taiwan Stock Exchange Corporation Criteria Governing Review of Call (Put) Warrant Listings(2004.06.14)
With the exception of trading in the underlying security during the duration of the warrants for offsetting of risk or under circumstances otherwise prescribed by the TSEC, the securities-dealing division of a securities firm issuing call (put) warrants may not purchase or sell the underlying security of the warrants within one month after the date of approval of the issue or one month preceding their maturity, provided that this restriction shall not apply when an early maturity occurs in the case of knock-out call or put warrants.
An issuer of call (put) warrants shall issue a letter of report to the TSEC by the 5th of each month, providing information on purchases and sales of the underlying securities of its issued warrants by its dealing department for the preceding month (including the trading day, the name of the security and the volume of the transaction).
The provisions of paragraphs 1 and 2 will apply mutatis mutandis to the risk management institutions employed by issuers using outsourced risk management, and, where the issuer is a foreign institution, to the dealing department of its branch institution within ROC territory or the dealing department of a branch institution established within ROC territory by a directly or indirectly wholly-owned subsidiary of such a foreign institution.
Except where regulations provide otherwise, during the duration of the call (put) warrants, there may be no inter-account transfers of the warrants' underlying security between the issuer's dealing department and positions in the security held in the issuer's hedge accounts.