Procedures for announcing default:
- When the TWSE receives a report of default from a securities broker pursuant to Point II, paragraph 1, subparagraph 1, item (i) or (ii), it will inform all securities brokers based on the particulars of the report, which shall handle related matters as follows:
- Receive and review the information on default by the principal at 8:30 a.m. the next morning and immediately proceed as provided in Article 76, paragraph 3 of the TWSE Operating Rules.
- Receive and review the information on default by the principal at 11:30 a.m. on the given morning and proceed as provided in Article 76, paragraph 3 of the TWSE Operating Rules from no later than 12 noon.
- In any event of default under the following conditions, the TWSE will immediately inform all securities brokers of the relevant default information for their control and management of risks, and the time for notification of default in subparagraph 1 of preceding paragraph will be included.
- The total amount of the same type of security that all the securities brokers purchase or sell by default reaches NTD10,000,000 or more; the amount of combined positions in New Taiwan dollars of foreign-currency or dual-currency securities upon conversion reaches the above sum.
The conversion of the aforementioned foreign currency into New Taiwan dollars is based on the exchange rate posted on the day of reporting.
- The default results from the principal placing an order through the agent.
- Responsibility for any damage to the rights and interests of the principal or any disputes arising in connection with a report of default under the first paragraph shall be borne by the securities broker reporting the default.