Taiwan Stock Exchange - Rules & Regulations Directory


Operating Rules of the Taiwan Stock Exchange Corporation(2007.06.06)

Article 99
A securities dealer shall process the trading of securities as the following:
1. It shall not quote the up-limit (down-limit) of the daily trading limit as the purchase (sale) price, provided that a dedicated account shall be separately assigned for trading securities for risk aversion in connection with issuance of call (put) warrants or for purchase in kind or redemption in kind of exchange traded fund beneficiary certificates, and trading report for such account may be exempt from the aforesaid price restriction.
2. Purchase (sale) prices quoted before the market is open shall not exceed 50 percent of the prescribed daily price-fluctuation limits based on the closing price (in case of ex rights or ex dividend, the projected ex rights price or ex dividend price on the date set for ex rights or ex dividend) of the previous trading day.
For newly listed common stocks during the period when no price fluctuation limit is imposed, and for securities trades required for hedging in the issuance of call (put) warrants or derivative financial products, and for beneficiary certificates for subscription or redemption of exchange-traded funds, all of these are free of the price restrictions in the preceding paragraph insofar as a separate segregated account may be established for the trading orders.
Where this Corporation discovers that the trading of securities by a securities dealer is sufficient to affect the normal market, this Corporation may report to the Competent Authority seeking its approval for limiting the trading volume of all or a part of the securities to be bought or sold by the securities dealer.

Data Source:Taiwan Stock Exchange - Rules & Regulations Directory