Article NO. Content

Title:

Taiwan Stock Exchange Corporation Standards Governing the Places of Business and Facilities of Securities Firms and Securities Introducing Brokers 

Amended Date: 2019.04.16 
Categories: Market Supervision > Regulation of Securities Firms
1     Provisions regarding securities brokers:
  1. The place of business of a securities broker shall include the following:
    1. A trading counter for accepting orders for securities trades (including a trading counter for over-the-counter trading).
    2. A multifunction service counter.
    3. A trading room exclusively for processing orders not made in person.
    4. Other places or premises of operation.
    The places of business referred to in the preceding paragraph shall be conspicuously indicated.
  2. Appropriate and complete public information or equipment shall be available at a place of business for investors' reference and use.
  3. No authorized trading of securities may take place at premises or facilities other than trading counters and trading rooms.
  4. Procedure for applying for the installation or change of the premises of places of business of securities firms:
    1. Prior to use, a newly established or relocated place of business shall be inspected by personnel dispatched from the Taiwan Stock Exchange Corporation (TWSE) (to assure that furnishings are complete and ready for immediate use); amendment of registration shall be completed; and re-issuance of the permit and certificate of license, where required, shall also be completed.
    2. Any expansion or downsizing of a place of business, trading counter, multifunction service counter, other places or premises of operation, and the trading room exclusively for processing orders not made in person shall be filed with the TWSE, with a floor plan and photographs submitted, prior to use.
    3. Other places of operation:
      1. Prior to use of a place of operation for a consulting business, a floor plan and photographs (and, for the initial establishment of such operating area, a photocopy of the competent authority's letter of approval for concurrent operation of a consulting business or a photocopy of a permit and certificate of license for the consulting business) shall be submitted to the TWSE for approval, and amendments to registration shall also be filed.
      2. A securities firm that operates trust-type wealth management business shall file for recordation and approval with the TWSE and complete any procedure for the re-issuance of the permit and certificate of license, prior to using a place of operation.
      3. For other places of operation, amendments to registration shall be filed with the TWSE within 15 days after use of the area begins.
    A securities broker or its branch office shall notify the TWSE by letter when any alteration is made in the facilities or their use within the original place of business; with the exception of those not requiring amendment of registration or re-issuance of a permit and certificate of license, methods of handling for such shall be the same as in the preceding subparagraph.
  5. The trading room specially set up for a securities broker to accept trading orders not made in person shall have access control in place.
  6. Standards governing the premises and facilities of a securities firm that concurrently operates other securities related business shall conform to provisions applicable to such other securities business.
  7. When, due to the occurrence of a force majeure event, a securities broker needs to use the spare auction equipment on the cloud infrastructure of the TWSE because its auction equipment or trading transmission system malfunctions or is unable to continue normal operations, or has a building safety issue, or improvement is required, the securities broker may choose to use any one of the following places to do so:
    1. Use the place of business of the head office or one of the branch offices of the securities broker.
    2. Use the place of business of another securities firm.
    3. Use the place of business of a bank, provided that the bank must issue prior written consent, in which it shall agree that the TWSE may dispatch personnel to the bank's place of business to inquire about the actual status of use, and agree to provide proof of use for the given day.
  8. With the exception of Point 1 (4) and Point 4 (1), provisions governing places of business of securities brokers do not apply to a securities firm which primarily engages in cross-border trading and accepts only trading requests from securities firms or special-purpose securities firms incorporated by a foreign exchange but not trading orders from investors.

Interpretation: