Taiwan Stock Exchange - Rules & Regulations Directory

Amendments

Title:
Operating Rules of the Taiwan Stock Exchange Corporation(2008.12.24)

Article 75-4
Each headquarters and branch of a securities firm may open two omnibus trading accounts in its own name, for purposes of accepting securities trading orders from domestic and foreign (including overseas Chinese and foreign nationals) principals respectively; provided that a Mainland China principal may not use an omnibus trading account.
A principal may use an omnibus trading account only after opening a securities trading account; the omnibus trading account may be used to participate in TWSE ordinary trading (i.e., trading from 9 a.m. to 1:30 p.m. under Article 3 of the Operating Rules of the TWSE), after-market fixed-price trading, odd-lot trading, and block trades that are settled on the second business day following the trade date. It may also, after carrying out a securities borrowing transaction through a securities firm under the TWSE's Securities Lending and Borrowing Rules, [use the borrowed securities] to trade through the omnibus trading account. A principal that is allowed by regulations to engage in margin trading may engage in margin trading through the omnibus trading account.
If a principal has authorized a trader to conduct trades and handle allocation of trade prices and volumes, it shall provide a power of attorney and specify the allocation of trade price and volume and relevant authorized matters. However, where a same authorized trader is authorized by offshore overseas Chinese or foreign nationals, domestic funds, or units of a same group, the power of attorney may be waived, and the authorized trader shall provide a statement specifying the principals' ID numbers or uniform invoice numbers, names, and other relevant information. The TWSE may, in accordance with operational needs, require securities firms to provide certifying documents relating to the aforesaid authorizations.

Article 137
If any securities firm violates Article 75-5, paragraph 2 herein or the provision regarding reporting deadline in Point 3(4) of the Taiwan Stock Exchange Corporation Operational Guidelines for Omnibus Trading Accounts, the TWSE may impose a fine of thirty thousand New Taiwan Dollars if the delay is one hour or less, or an additional fine of ten thousand New Taiwan Dollars for each additional hour's delay.
Where any securities firm fails to key-in within the prescribed time period the clearing data in respect of margin purchases or short sales in accordance with Article 103, the TWSE shall impose a fine of thirty thousand New Taiwan Dollars if the delay is one hour or less, or an additional fine of ten thousand New Taiwan Dollars for each additional hour's delay.
Where any securities firm violates subparagraphs 1 or 2 of paragraph 5 Article 104, the TWSE shall impose a delay fine in accordance with the following criteria, provided that this rule shall not apply where the securities firm can provide evidence proving the delayed delivery of securities or proceeds is not attributable to any intent or negligence of the securities firm:
1. Where the delay is one hour or less, a fine of thirty thousand New Taiwan Dollars is imposed if the volume of shortfall in securities is 5,000 lots or less, or if the settlement price in the delayed payment is fifty million New Taiwan Dollars or less; a fine of forty thousand New Taiwan Dollars is imposed if the volume of shortfall is over 5000 lots, or the settlement price is over fifty million New Taiwan Dollars.
2.Where the delay is over one hour, an additional fine of ten thousand New Taiwan Dollars is imposed for each additional hour's delay.
Securities firms shall pay fines referred to in the preceding three paragraphs to the Finance Division of the TWSE within two days after receiving notification of the TWSE.

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