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    These Operational Guidelines are adopted pursuant to Article 75-5 of the Operating Rules of the Taiwan Stock Exchange Corporation.

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    Account opening:

1. The head office and branch offices of any securities firm may each open two omnibus trading accounts under their own names at their own places of business. The two accounts are provided for use, respectively, by foreign principals (securities trading account number: 995555+check code) and domestic principals (securities trading account number: 885555+check code).


2. The account identification code for domestic securities firms' omnibus trading accounts is "600"; the account identification code for the omnibus trading accounts of Taiwan branch offices of foreign securities firms is "403".

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    Trading and transaction allocation reporting:

1. Trading:
1. The rules governing volumes and prices of trading orders placed through securities firms' omnibus accounts shall be the same as for ordinary trading accounts, but in addition, odd lots of different principals may be combined and submitted for trading through the omnibus account.
2. When there is a change in the statement [of the principals served by an authorized trader through an omnibus trading account], the statement of principals shall be delivered to the securities firm within 5 business days after the securities firm submits the post-allocation statement of detailed transactions ("post-allocation transaction statement"), or a list of changes in principals shall be transmitted to the securities firm within three business days after the securities firm submits the post-allocation transaction statement, using a form of notification (fax or electronic transmission) agreed between the securities firm and the authorized trader.
3. A securities firm accepting orders to trade securities through an omnibus trading account shall retain a comprehensive record of orders for such trades, original execution reports, and post-allocation transaction statements in accordance with the TWSE's Table of Required Periods for Retention of Accounting Statements and Vouchers by Securities Firms. The aforementioned "post-allocation transaction statements" shall include the securities firm code, the omnibus trading account number, the stock code, whether the trade was a purchase or a sale, whether odd lots or round lots were traded, the trading order code number, the post-allocation investor account numbers, numbers of post-allocation trading units (shares, units of beneficial interests, or units of depositary receipts, hereinafter all referred to as "units"), the total amount of post-allocation transactions, and the securities trading category.
4. A securities firm accepting orders to trade securities through an omnibus trading account shall provide a trading quota for each principal to the authorized trader, who shall be responsible for enforcing each principal's trading quota in daily authorized trading. Whenever a given statement of post-allocation transactions is found to contain one or more cases of a trading quota being exceeded by a principal, a single trading quota violation by the omnibus account will be recorded; when an omnibus trading account accrues more than ten such violations in a single month, the TWSE may impose a penalty on the respective securities firm in accordance with applicable regulations.
5. When a securities firm accepts an order for a block trade sale of securities through an omnibus trading account, the authorized trader shall be responsible for ensuring that the central depository account of the principal contains at least the number of shares sufficient for settlement of the order. If, following submission of the post-allocation statement, any violation of the above provision is found, the violation may only be handled by the securities firm pursuant to the regulations in force for reporting of out-trades or default.
6. When a securities firm accepts an order to trade securities through an omnibus trading account where regulations require it to pre-collect part or all of the trade price or the securities, the authorized trader shall be responsible for managing the pre-collections and making delivery to the securities firm after collection from the principals.
7. When, pursuant to the Standard Directions for Internal Control Systems in Securities Firms, a securities firm makes its calculation of the amounts of trades of principals, for any trade made by a principal through an omnibus account, the securities firm may substitute the amount of the transaction allocation for the amount of the trading order; if the principal made trades other than through the omnibus trading account, the amounts of those trading orders shall be also be added.
2. Reporting of transaction allocations and pre-allocation account number corrections:
1. A securities firm that accepts an order for a securities transaction to be handled through other than an omnibus trading account may, on the transaction date or the first business day after the transaction date, report a correction of the account number to the omnibus account, combine the order with the total amount and volume of the same securities transacted through the omnibus trading account, and proceed with transaction allocation operations. In addition, when a securities firm accepts orders for securities transactions to be handled through the omnibus account, it may also, on the transaction date or the first business day after the transaction date, report a correction of the account number to an account other than the omnibus account, then proceed to make the transaction allocation report. Securities firms must revise their reporting of trading order information in accordance with the provisions of 3.(3) of these Guidelines.
2. A securities firm shall report itemized allocation information for each individual security on the date of the transaction. The aggregate transaction amount and volume reported for all principals must exactly equal the aggregate transaction amount and volume of the respective securities transactions through the omnibus trading account on that day after account number correction, and the securities firm shall submit the itemized post-allocation transaction statement to the TWSE between 3 pm and 6 pm on the same day, in the prescribed electronic format. However, if the securities firm has not yet been able to complete the transaction allocation operations for an omnibus trading account with foreign principals (securities trading account number: 995555+check code), it may by 6 pm of the same day report and preserve the information not yet allocated, in the prescribed electronic format under the original omnibus trading account, and must report a partial adjustment of allocation with respect to the itemized transaction information pursuant to 3. (4) of these Guidelines. If the securities firm needs to amend an allocation after reporting itemized allocation information on the transaction date, it shall first cancel the account number corrections for that day, then after the allocation information has been restored to its original status as transaction information for the omnibus account, once again report account number corrections as needed, followed by reporting of itemized post-allocation transaction information.
3. A securities firm, pursuant to the authorized trader's directions, may combine regular trading and after-hours fixed-price trading for allocation to principals as odd-lot shares or integer multiples of one trading unit. Allocations in integer multiples of one trading unit may not exceed 10,000 trading units per allocation, and for the aforesaid allocations in odd lots or for odd-lot trades, allocations may not exceed 999 shares (units), provided that when the trading unit is less than 1,000 shares (units), each allocation shall be less than one trading unit. In addition, allocations in integer multiples of one trading unit and allocations in odd lots shall be reported separately.
4. The total transaction amount of any individual security that a securities firm allocates to any principal, pursuant to the instructions of the authorized trader, in integer multiples of one trading unit shall be reported in integer multiples of one trading unit; if one trading unit is in integer multiples of 1,000 shares (units), the total transaction amount shall be reported in integer multiples of NT$10; if one trading unit is in integer multiples of 100 shares (units), the total transaction amount shall be reported in NT Dollars; if one trading unit is in integer multiples of 10 shares (units), the total transaction amount shall be reported in dimes; if one trading unit is in integer multiples of one share (unit), the total transaction amount may be reported in New Taiwan Dollars, dimes, or cents. In addition, the total transaction amount of any individual security that a securities firm allocates to any principal in odd lots, pursuant to the instructions of the authorized trader, may be reported in New Taiwan Dollars, dimes, or cents, and the total transaction volume of such an allocations shall be reported as integer multiples of one share (unit).
5. After a securities firm receives an order for a block trade through an omnibus account, the total transaction amount of any individual security that a securities firm allocates to any principal in odd lots, pursuant to the instructions of the authorized trader, may be reported in New Taiwan Dollars, dimes, or cents, and the total transaction volume of such an allocations shall be reported as integer multiples of one share (unit). Allocation information for the aforesaid allocations shall be reported separately along with the allocation information for regular trades, after-hours fixed-price trades, and odd-lot trades, and is not subject to the requirements of the Taiwan Stock Exchange Corporation Rules Governing Block Trading of Listed Securities regarding trade volumes, types, and amounts. The provisions of 3.(2)(i) herein are also not applicable to block trades.
6. A securities firm may enter the difference between the securities firm's reported total transaction amounts for each principal and the amount of the principal's actual settlements into accounts as "other operating revenues" or "other operating expenses."
7. If the transaction price of any security calculated pursuant to the post-allocation transaction statement is unreasonable or unfair, i.e., exceeding either the maximum or minimum price for that day's transactions through the given omnibus trading account, the TWSE may announce the authorized trader's name and related information and notify the authorized trader's principal.
8. In regard to the allocation details reported by a securities firm, each principal shall conform to the requirements of the individual security that govern the qualifications of principals.
3. A securities firm shall report the itemized details of the trading orders of each principal or authorized trader to the TWSE by 6 pm on the first business day after the date of the transaction in the prescribed electronic format. In accordance with operational needs, the TWSE may require a securities firm to provide execution reports in real time for trades then being made through the omnibus trading account, as well as details of each principal's or authorized trader's trading orders. The information on trading orders referred to above shall include the securities firm code, the omnibus trading account number, the stock code, whether the trade was a purchase or a sale, the code numbers of the original trading orders, the names and code numbers of the principals or authorized traders, and the volumes of the trading orders. One or more code numbers may be used by the same authorized trader; therefore, as dictated by the TWSE's operational needs, the TWSE may require the securities firm to provide related detailed information on a principal or authorized trader.
4. A securities firm may report a partial adjustment of allocation with respect to the transaction information under 3.(2)(ii) of these Guidelines by 6 pm on the first business day after the transaction date. All total transaction amounts and total transaction volumes for individual securities allocated to all principles after adjustment of allocation on a given day must be the same as for total amounts and total volumes of transactions of individual securities through the omnibus trading account, on the same day, after account number corrections. Any allocation the securities firm has made to a domestic securities investment trust fund on the date of the transaction, however, may only be allocated, when reporting a partial adjustment of allocation on the following business day, to a domestic securities investment trust fund. If the securities firm needs to amend allocation recipients following its reporting of adjustment of allocation on the first business day after the transaction date, it shall first cancel the account number corrections for that day, then, after the allocation information has been restored to its original status as transaction information for the omnibus account, once again report account number corrections as needed, followed by a report of post-allocation transaction information.
5. For post-allocation transaction statements submitted by securities firms on the transaction date and partial adjustment of allocations made on the following business day for omnibus trading accounts with the securities trading account number "995555+check code", the allocations may only be made to foreign principals. For those for omnibus trading accounts with the securities trading account number "885555+check code", the allocations may only be made to domestic principals.
6. Only after a securities firm has submitted the post-allocation transaction statement may it report out-trades or account number corrections or a change of trading category by means of the post-allocation securities trading account of any principal.
7. Clearing and settlement:
   A securities firm accepting orders for securities trading through an omnibus trading account shall submit post-allocation transaction statements as instructed by the authorized traders and perform settlement through the principals' securities trading accounts pursuant to the Operating Rules of the Taiwan Stock Exchange Corporation.

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    Reporting procedures for out-trades and account number corrections subsequent to transaction and allocation
    A securities broker shall report out-trades and account number corrections by 10 a.m. of the second business day following the transaction date, for the securities trading account of each principal subsequent to allocation, pursuant to the following rules:

1. If an out-trade has been reported, and the handling of the out-trade with a repurchase or resale has also been reported, the securities broker may not thereafter report a partial adjustment of allocation.


2. If an out-trade has been reported but its handling by means of a repurchase or resale has not yet been reported, if the securities broker intends to report a partial adjustment of allocation, it shall first withdraw the previous post-allocation out-trade, then report the partial adjustment of allocation.


3. If, after reporting correction of an account number, the securities firm intends to report a partial adjustment of allocation, it shall first withdraw the post-allocation account number correction and then report the partial adjustment of allocation.

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    Reporting of margin transactions and securities borrowing:

1. The total pre-allocation and post-allocation volumes of transactions for any individual security in any trading category must be the same.


2. When a securities firm reports a change in the category of a trade to a short sale or a sale of borrowed securities, the pre-allocation order price and the post-allocation transaction price shall conform to the requirement that the short sale or the sale of borrowed securities may not be conducted at a price lower than the closing price of the previous business day.


3. No partial adjustment of allocation may be reported on the business day following the transaction date of a trade in any category that is a margin transaction.


4. When in calculating in combination the securities traded for a principal's own account and securities allocated to that principal through an omnibus trading account, it occurs that there is on the same day margin purchase and short sale transactions comprising the same volume and same type of security, it shall be handled in accordance with the applicable provisions of Chapter V, Settlement by Offsetting of Margin Purchases and Short Sales in Margin Trading, of the Operating Rules for Securities Firms Handling Margin Purchases and Short Sales of Securities.


5. When a securities firm accepts orders for margin purchases or short sales to be made through an omnibus trading account, the authorized trader shall be responsible for enforcing the trading quotas of each principal and determining whether or not such margin purchases or short sales are permitted for that principal. If, after allocation is made, it is discovered that a principal's quota has been exceeded or that the margin purchase or short sale was impermissible, the securities firm shall handle the matter in accordance with the applicable provisions of the Guidelines for Securities Firms Handling Changes in Trading Categories then in force.

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    These Guidelines take effect after having been submitted to and approved for recordation by the competent authority. Subsequent amendments thereto shall be effected in the same manner.