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When the TWSE centralized exchange market remains open for an entire day:
- During the occurrence of a natural disaster, securities firms with head office and branch offices situated outside of the disaster area shall operate as usual, and settlements due the current day shall be handled as usual.
- If due to the occurrence of a natural disaster, the county commissioners or city mayors in the disaster area announce cancellation of work for government and educational institutions on the given day in all or part of the areas under their administrative jurisdiction, the securities firms in the disaster area may decide at their own discretion whether to conduct operations as usual. Irrespective of whether operations are conducted as usual, the TWSE shall handle all settlements of funds and securities due on the given day according to the following principles and no securities firm may raise any objection:
- Funds:
- All securities firms inside the disaster area shall request their head or branch offices outside the disaster area to handle all settlements of funds.
- Head offices inside the disaster area shall designate a branch office outside the disaster area to conduct settlements on their behalf. Where the designated branch office is unable to complete settlements, the TWSE may advance the funds for settlements using the clearing and settlement funds deposited by such securities firm. In the event that the deposited clearing and settlement funds are less than required, the securities firm may file an application for advance payment of settlement payables by the TWSE and shall reimburse the advance after the natural disaster has passed.
- Where the head and branch offices of a securities firm are all situated in the disaster area, the TWSE may advance the funds for settlements using the clearing and settlement funds deposited by such securities firm. In the event that the deposited clearing and settlement funds are less than required, the TWSE shall advance the difference for completion of settlements, and the securities firm shall reimburse the advance after the natural disaster has passed.
- Where the TWSE advances the funds for settlements using the clearing and settlement funds deposited by a securities firm, or where a securities firm files an application for advance payment of settlement payables by the TWSE to complete settlement, the TWSE may notify the central depository company to retain as collateral in the TWSE's account the portion equivalent to securities receivable within the same clearing period.
- Securities:
Securities firms in the disaster area shall conduct as usual the settlement of the book-entry transfer portion of the securities due on the given day; if the securities in the settlement account are insufficient for settlement, the TWSE may borrow securities on their behalf for completion of settlements and may notify the central depository company to retain as collateral in the TWSE's account the portion equivalent to securities receivable within the same clearing period or retain settlement price receivables with equivalent values. Such collateral shall be excluded from application of Article 109, paragraph 1 of the TWSE Operating Rules.
- If due to the occurrence of a natural disaster, the county commissioners or city mayors in the disaster area announce cancellation of work for government and educational institutions in the morning or afternoon of the given day in all or part of the area under their administrative jurisdiction, the securities firms inside the disaster area may decide at their own discretion whether to conduct operations as usual. Irrespective of whether operations are conducted as usual, settlements of funds and securities due on the given day shall be handled according to the provisions of paragraph 2.2.
- Securities firms with head office and branch offices all situated outside the disaster area that are truly incapable of carrying out settlement because their correspondent settlement banks are not operating normally due to a natural disaster shall submit a written explanation, and the TWSE may handle the situation in accordance with the provisions of subparagraph 2.2.1.
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