When securities are auctioned pursuant to these Regulations, the TWSE may, after obtaining the consent of the applicant securities firms, announce the auction base price in its Market Information System at the time when auction begins or when bidding has been closed. When application is made for auction of securities in accordance with the proviso under Article 3, paragraph 1, however, the time of announcement of the auction base price may be separately decided through consultation between the applicant securities firm and the TWSE.
Except for the release of state-owned shares, the base price referred to in the preceding paragraph shall be limited to a range of 15 percent above or below the auction reference price at market opening on the day of auction. For securities on which no price fluctuation limit is imposed, however, the base price may be limited to a range of 15 percent above or below the closing price on the day of the auction, and publicly announced by the TWSE as provided in Article 2, subparagraph 3. For securities whose auction base price is calculated based on the closing price on the day of auction, if no closing price is available on the day of auction, the base price shall be calculated from a price determined by one of the following principles, and limited to a range of 15 percent above or below the price from which it is calculated:
If the base price is announced at the auction venue by the applicant securities broker, the TWSE shall be informed of the price by sealed letter.
- When, on the day of auction, the highest bid price at market close is higher than the auction reference price at market opening, the base price shall be calculated based on that highest bid price.
- When, on the day of auction, the lowest ask price at market close is lower than the auction reference price at market opening, the base price shall be calculated based on that lowest ask price.
- When neither of the above circumstances applies, the base price shall be calculated based on the auction reference price at market opening.
The auction base price and the auction bids shall be expressed on a per-unit basis (call (put) warrant units, units of beneficial interest, and depository receipt units shall each be referred to as a "unit").
Securities firms may cancel or change the volume and price of their quotes during the bidding period. Application for cancellation or change shall be conducted via computers or terminals connected to the TWSE's computers.