Taiwan Stock Exchange - Rules & Regulations Directory

Article NO. Content

Title:

Taiwan Stock Exchange Corporation Rules Governing the Trading of Securities with Warrants 

Amended Date: 2018.12.24 (Articles 8, 9, 11 amended,English version coming soon)
Current English version amended on 2015.04.02 
Categories: Securities Exchange Market > Trading > Other Securities
Article 8
    Daily fluctuations of securities with warrants shall be calculated according to the formula below:
  1. For inseparable preferred shares with warrants:
  2. Limit-up price = Auction reference price at market opening of the current trading session ×(1 + 10%) + (Limit-up price of underlying securities of the current trading session - Auction reference price of underlying securities at market opening of the current trading session) ×Subscription ratio
    Limit-down price =Auction reference price at market opening of the current trading session ×(1 - 10%) - (Auction reference price of underlying securities at market opening of the current trading session - Limit-down price of underlying securities of the current trading session) ×Subscription ratio
  3. Inseparable corporate bonds with warrants:
  4. Limit-up price = Auction reference price at market opening of the current trading session ×(1 + 5%) + (Limit-up price of underlying securities of the current trading session - Auction reference price of underlying securities at market opening of the current trading session) ×Subscription ratio
    Limit-down price =Auction reference price at market opening of the current trading session ×(1 - 5%) - (Auction reference price of underlying securities at market opening of the current trading session - Limit-down price of underlying securities of the current trading session) ×Subscription ratio
  5. Stock Warrants:
  6. Limit-up price = Auction reference price at market opening of the current trading session + (Limit-up price of underlying securities of the current trading session - Auction reference price of underlying securities at market opening of the current trading session) ×Subscription ratio
    Limit-down price =Auction reference price at market opening of the current trading session - (Auction reference price of underlying securities at market opening of the current trading session - Limit-down price of underlying securities of the current trading session) ×Subscription ratio
    The provisions under Subparagraphs 1 and 2, Paragraph 2 of Article 58-3 of the Operating Rules of the Taiwan Stock Exchange Corporation shall apply mutatis mutandis to the auction reference price at market opening of the current trading session in the preceding paragraph, except the securities with warrants in the initial listing for which the price under Article 7 may be calculated using the reference price for initial listing.
    The reference price for initial listing in the preceding paragraph shall be determined by the following method:
  1. For inseparable preferred shares with warrants and inseparable corporate bonds with warrants, the public sale price prior to listing shall be used.
  2. For Stock Warrants, the following formula shall be used in the calculation:
    Issue price of Stock Warrants ×(Auction reference price of underlying securities at market opening of the current trading session on the listing date of Stock Warrants ÷ Auction reference price of underlying securities at market opening of the current trading session on the issue date of Stock Warrants) ×(Exercise ratio of the listing date of Stock Warrants ÷ Exercise ratio of the issue date of Stock Warrants)
    The auction reference price of underlying securities at market opening of the current trading session in Paragraphs 1 and 3 above shall be subject to the provisions under Article 58-3 of the Operating Rules of the Taiwan Stock Exchange Corporation.
    In the case of an ex-dividend/ex-rights date for preferred shares or date on which trading will resume after capital reduction, the reference used for calculation of fluctuations of the current trading session in Subparagraph 1 of Paragraph 1 above shall comply with the reference established in the Operating Rules of the Taiwan Stock Exchange Corporation and other applicable policies and regulations.
    The limit-up and limit-down prices in the calculations in Paragraph 1 above are always positive numbers. After conversion of fluctuations, a price lower than the minimum fluctuation unit shall be deemed the minimum fluctuation unit and the lowest price shall be the minimum fluctuation unit.

Interpretation:

Data Source:Taiwan Stock Exchange - Rules & Regulations Directory
twse-regulation.twse.com.tw