Preferential treatment for liquidity providers
- A liquidity provider may, during the same settlement period, use netting when settling block trades, regular trades, after-hours fixed-price trades, and odd-lot trades, and spot trades on the same day, of ETF beneficial certificates. If there remains a balance of sell trades of the ETF beneficial certificates after netting, the liquidity provider may, within the same day, borrow those ETF beneficial certificates through the TWSE's securities lending system or from a securities firm pursuant to regulations and, no later than the second business day following the transaction day, apply to borrow securities to perform settlement pursuant to Article 109 of the TWSE Operating Rules.
- A liquidity provider that applies to borrow securities for settlement pursuant to Article 109 of the TWSE Operating Rules may be exempted from the relevant sanctions on its general manager, managerial officer, and responsible staff member.
- The TWSE provides a discount on transaction charges for liquidity providers that achieve a certain performance level. Relevant requirements and criteria shall be separately prescribed by the TWSE.
- If the amount of securities borrowed to perform settlement pursuant to Article 109 of the TWSE Operating Rules as aforementioned exceeds the number of beneficial units per unit of such ETF beneficial certificates, the liquidity provider's eligibility for discounts or exemption of transaction charges for the current month shall be cancelled.