• Font Size:
  • S
  • M
  • L
友善列印
WORD

Article NO. Content

Title:

Rules Governing the Proprietary Trading of Foreign Bonds by Securities Firms  CH

Amended Date: 2022.06.08 (Articles 4, 6-4, 7, 11, 15 amended,English version coming soon)
Current English version amended on 2020.09.15 
Article 6     Proprietary trading of foreign bonds may be conducted over the counter (OTC) at the securities firm's business premises or through the TPEx's trading system.
    A securities firm shall first apply to the TPEx for registration of a foreign bond and receive approval from the TPEx before trading the foreign bond over the counter. However the preceding restriction does not apply to foreign bonds that have already been registered by other securities firms.
    Where there is a change to the registration data of a foreign bond mentioned in the preceding paragraph, the originally registering securities firm shall complete the updating of the registration data within 5 days after the change has occurred.
    Except as otherwise provided by law or regulation or these Rules, the foreign bonds mentioned in paragraph 2 hereof may not be structured bonds. The information to be registered for a foreign bond shall include its issuer, place of issue, International Securities Identification Number (ISIN), long-term credit rating, denominated currency, date of issue, maturity date, coupon dates, coupon rate, terms for interest and principal repayment, and other early call (put) provisions.
    Before the 10th of each month, the TPEx shall compile relevant information on foreign bonds it has approved for registration in the previous month and submit a report to the competent authority for recordation.
    The trading hours for proprietary trading of foreign bonds by securities firms using negotiated OTC trading are from 9 a.m. to 3 p.m. However, if a securities firm has already adopted internal operating rules for extended trading hours, it may extend its trading hours and publicly announce the extended hours at its place of business or on its website.
    If a securities firm adopts internal operating rules referred to in the preceding paragraph, those rules, and any amendments to them, shall be approved by the chairman of the board of directors.
    Except as otherwise provided by these Rules, when a securities firm conducts proprietary OTC trading of foreign bonds with professional investors other than professional institutional investors, the foreign bonds must comply with the scope of foreign bonds allowed in brokerage trading conducted by securities firms for professional investors as set out in Article 6 of the Regulations Governing Securities Firms Accepting Orders to Trade Foreign Securities. However, if the securities firm meets the requirements of paragraph 1 of the preceding article, when it conducts proprietary trading of foreign bonds with high net worth juristic person investors or high-asset customers, the foreign bonds are not subject to the restriction of Article 6, paragraph 1 of the Regulations Governing Securities Firms Accepting Orders to Trade Foreign Securities with respect to the credit rating of foreign bonds.
    Foreign bonds traded by securities firms in OTC trading with professional institutional investors and high net worth juristic person investors may be foreign currency denominated structured bonds that meet the product criteria set out in Article 17, paragraph 1, subparagraphs 1 to 3 of the Regulations Governing Offshore Structured Products, and, in the case of trading with professional institutional investors, the linked underlyings furthermore may be those described in Article 17, paragraph 2 of the Regulations Governing Offshore Structured Products.
    An offshore banking branch also may engage in OTC trading of foreign currency denominated structured bonds that meet the product criteria set out in Article 17, paragraph 1, subparagraphs 1 to 3 of the Regulations Governing Offshore Structured Products with professional investor juristic persons or funds that have total assets exceeding NT$100 million stated on their financial reports, and, in the case of trading with professional institutional investors, the linked underlyings furthermore may be those described in Article 17, paragraph 2 of the Regulations Governing Offshore Structured Products.