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Relevant Laws

Title:Operating Rules of the Taiwan Stock Exchange Corporation (2020.05.05)
Article 75-5     When a securities firm accepts orders to trade securities through an omnibus trading account, it shall make trading quotes corresponding to the orders placed by the principals or the authorized traders thereof, and shall note the name or symbol of the principal or the authorized trader on the order ticket or the trading order record.
    The securities firm shall transmit the itemized allocations of trade price and volume as instructed by the authorized trader to the TWSE by 6 p.m. on the trade date, and the itemized orders of the principals and authorized traders thereof, to the TWSE by 6 p.m. on the first business day following the trade date, provided that this restriction shall not apply if the TWSE provides otherwise.
    Operational directions related to omnibus trading accounts will be prescribed by the TWSE.
Article 103     The trading of securities on the Exchange that is transacted on the same business day shall be deemed as one clearing period.
    The portion of the transacted securities referred to in the immediately preceding paragraph that are to be centrally deposited and settled through book-entry shall be handled in accordance with the relevant provisions of the operation rules of the central securities depository.
    The portion of the securities referred to in the first paragraph of this Article that are transacted through margin purchases or short sales shall be handled by securities firms in accordance with the relevant provisions of the Operation Rules for Securities Firms Dealing with Margin Purchases and Short Sales of Securities and the Operation Rules for Securities Finance Enterprises Dealing with Margin Loans and Short Stocks.
    The clearing data in respect of margin purchases or short sales referred to in the immediately preceding paragraph that shall be compared with that of the securities finance enterprises shall be transmitted along with other clearing data to the computer system of the central securities depository after ascertaining that there is no error at comparison, and consolidated report shall be prepared and transmitted to the computer system of the TWSE. The deadline for completion of the transmission shall not be later than 9:00 p.m.
Article 104     The TWSE shall handle centralized settlement of trading conducted on the Exchange in accordance with the principle of delivery versus payment.
    A securities firm shall bear the obligation to the TWSE to perform the settlement of trades that the securities firm conducts on the Exchange. The TWSE shall bear the obligation of counter-prestation settlement for trades employing multilateral net settlement.
    When handling trades employing multilateral net settlement, the TWSE shall carry out settlement with securities firms and securities finance enterprises after offsetting the amounts of securities and funds receivable and payable/deliverable.
    A securities firm or a securities finance enterprise shall perform in advance its obligation to deliver securities deliverable or funds payable. The TWSE may, until that obligation has been performed, retain the funds and securities receivable by the securities firm or securities finance enterprise.
    Securities firms and securities finance enterprises shall complete settlement procedures with the TWSE for the prices and securities payable and receivable for securities trades within the following time limits:
  1. Securities deliverable to the TWSE shall be delivered by 10 a.m. of the second business day following the trade date.
  2. Prices payable to the TWSE shall be paid by 11 a.m. of the second business day following the trade date.
  3. Securities receivable from the TWSE shall be received after 11 a.m. of the second business day following the trade date.
  4. Prices receivable from the TWSE shall be received after 11 a.m. of the second business day following the trade date.
    After completing the operations for the transfer of securities deliverable by the securities firms and securities finance enterprises, the central securities depository shall promptly notify the TWSE of the results.