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Article NO. Content


Regulations Governing Over-the-Counter Trading Enterprises  CH

Announced Date: 2006.06.27 
Article 18     An OTC trading enterprise shall draft a business plan and submit it, and any amendment thereto, to the Competent Authority for approval.
    The business plan of the preceding paragraph shall regulate the issues listed below:
  1. The application for and termination of OTC securities trading.
  2. Proprietary trading, trading for customer accounts, and how the two are to be distinguished.
  3. Method for the establishment of a brokerage contract.
  4. Business operation hours and trading units.
  5. Method for the public display of trading prices.
  6. Standards regarding tick size and price limits, and the setting of initial OTC trading prices.
  7. Settlement and payment schedules and methods.
  8. Arbitration and disposition of trading disputes and regulatory violations.
  9. Other matters regarding OTC trading.
    When an OTC-traded financial product's special characteristics render it unsuitable for trading under the methods of the preceding paragraph, the OTC trading enterprise may adopt separate trading rules and submit them, and any amendments thereto, to the Financial Supervisory Commission (FSC) for approval.