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Article NO. Content


Operational Rules Governing Day Trades of Securities  CH

Amended Date: 2016.02.01 
Categories: Securities Exchange Market > Trading > Securities Transaction
Article 2     A principal applying to conduct day trades of securities shall have opened a brokerage account for three full months and shall have had at least 10 trading orders executed within the most recent one year, provided that these restrictions do not apply to those that have opened a margin account or to professional institutional investors.
    A principal shall first sign a general authorization agreement with the securities broker, stipulating the matters specified in Article 1, paragraph 1, and, unless a professional institutional investor, shall sign a risk disclosure statement before the securities broker may accept the principal's orders for day trades.
    If a principal has signed a general authorization agreement, and on the day of a trade does not wish to offset the trade in day trading, the principal shall, before market close, make a statement to the securities broker. The securities broker shall confirm the statement and keep a record.
    The risk disclosure statement and general authorization agreement under the preceding paragraphs shall be publicly announced by the TWSE.
    Professional institutional investors under paragraphs 1 and 2 shall mean domestic and foreign banks, insurance companies, bills finance companies, securities firms, fund management companies, government investment institutions, government funds, pension funds, mutual funds, unit trusts, securities investment trust enterprises, securities investment consulting enterprises, trust enterprises, futures commission merchants, futures service enterprises, and other institutions approved by the competent authority.
    A securities broker shall input into the computer systems designated by the TWSE and the GTSM the list of names of principals that may conduct day trades. If there is any change, an adjustment shall be made immediately.
    A principal may not use an omnibus trading account to engage in day trades of securities. Trades conducted after trade allocation of an omnibus trading account, and trades for which the account number is corrected after trade allocation, may not be offset as day trades.