Article 1
    These Regulations are established to boost liquidity of the Taiwan Innovation Board listed stock market and serve as a basis for market makers to engage in market making.

Article 2
    For the purposes of these Regulations, the term “market maker” means a securities dealer that applies to the Taiwan Stock Exchange Corporation (TWSE) for providing bid and ask quotes of Taiwan Innovation Board (TIB) stocks within the prescribed time.

Article 3
    A market maker shall provide bid and ask quotes from a designated account (securities firm account: 555555-5).

Article 4
    A market maker shall provide bid and ask quotes of TIB stocks during the period from five minutes after the opening to the closing of the centralized market of the TWSE, in accordance with the following operating regulations:

1. A quote shall include the bid price and ask price. In terms of period of validity, the quote may not be canceled if not immediately satisfied, or canceled if not all quotes are immediately satisfied.
2. The bid-ask spread quoted may not exceed 5%, as calculated as below:
   (Bid-ask spread) = [(Ask quote) – (Bid quote)] / (Ask quote).
3. No bid and ask quote may be less than three trade units, or the total amount shall be TWD 200,000 or above.
4. A current quote shall be valid for at least 50% of the period from five minutes after the opening to the closing of the centralized market. The following periods may be excluded:
1. periods where matching is postponed in accordance with Article 58-3, paragraph 6 or 8 of the Operating Rules of the TWSE.
2. periods where the price disclosed is the price of a buy or sell limit order.
3. periods where the best bid or ask price disclosed is the market value.
4. where the market maker's buy or sell trade reaches 30 or more trade units.
5. The number of days of a valid quote that conforms to the preceding four subparagraphs in a month shall be at least 80% of the number of days a quote is required in said month. The number of days a quote is required means the number of trading days of a TIB stock in the current month, exclusive of the following periods:
1. periods where the TIB stock is listed as a disposition stock.
2. other times approved by the TWSE where quotes are optional.

Article 5
    Market makers may settle regular trades, after-hours fixed-price trades, block trades and odd-lot trades of the same type of securities on the same day at the balance after the set-off of receivables against payables in respect of said securities.
    Where the balance mentioned in the preceding paragraph exceeds the balance of securities in the designated account, an application shall be made in accordance with Article 109 of the Operating Rules of the TWSE no later than the two following business days for borrowing securities for settlement in regard to the short securities.
    Relevant disposition may exempted if the aforementioned application is made.

Article 6
    The conditions for offering incentives and standards of transaction charges discounts to market makers will be established by the TWSE.

Article 7
    These Regulations shall take effect after having been submitted to and approved by the Competent Authority. Subsequent amendments thereto shall be effected in the same manner.