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Operation Directions
- To provide the DMA service, a securities broker shall amend its internal control and audit rules accordingly and, 2 weeks before launching the service, submit a written report to the TPEx for recordation providing the launch date, descriptions of its data transmission structure and process, and descriptions of its control mechanisms that, as ascertained after reasonable evaluation, can achieve identity verification, data integrity, data security, and non-repudiation of transactions. Notwithstanding, if the securities broker has carried out the above procedure with and obtained an approval letter for recordation from the Taiwan Stock Exchange Corporation (TWSE), it need not carry out the same procedure with the TPEx.
- Before accepting a principal's request to submit orders via DMA ("DMA orders"), a securities broker shall file the principal's account information with the TPEx.
- To provide the DMA service, a securities broker shall establish a computer screening function and management procedures to ensure that each DMA order complies with relevant regulations. As with trading orders submitted by other means, DMA orders submitted to the TPEx shall have been marked with the submission time and serial number of the order. Skipping, omitting, or repeating numbers is not allowed. DMA orders and those trading orders submitted by other means shall be treated fairly in terms of the sequential order of processing.
- When the connection portals of a DMA principal and a securities broker (or its overseas branch) are both located outside Taiwan, the network connection between them shall comply with the local laws and regulations of the country(ies) in which they are located. These connection portals and the trading system of the Taiwan branch (or headquarters) of the securities broker shall be connected through a private line or the securities broker's private trading network.
- The use of electronic signatures issued by a certification authority is not required for the transmission of electronic documents, such as securities trading orders, order confirmations, and execution reports, between a securities broker and a DMA principal if either of the following conditions is satisfied:
- The connection portals of the DMA principal and the securities broker (or its overseas branch) are both located outside Taiwan.
- The securities broker has signed a contract and a risk disclosure statement with the principal stating the respective rights and obligations of both parties, how risks are allocated, and who bears the burden of proof when a dispute arises, and other security mechanisms are in place for transmission of the electronic documents above. If the principal has authorized an agent to conduct trading, the agent, after presenting a written power of attorney, may sign the contract and risk disclosure statement on the principal's behalf. If a same agent is authorized by offshore overseas Chinese or foreign nationals, domestic funds, or units of a same business group, the agent, after providing a written statement specifying the principals' ID numbers or business administration numbers, names, and other relevant information, may sign the contract and risk disclosure statement on behalf of the principals without being required to present powers of attorney. However, the TPEx may, in accordance with operational needs, require the securities firm to provide certifying documents relating to the aforesaid authorizations.
Where the exemption condition under Item B of this subparagraph is satisfied, the securities broker shall submit to the TPEx for recordation a written report on the security mechanisms it adopts and complete the filing process over the One-Stop Window for Securities Firm Filings. The same shall apply to any subsequent amendments thereto. Notwithstanding, if the securities broker has carried out the above procedure with and obtained an approval letter for recordation from the TWSE, it need not carry out the same procedure with the TPEx.
- A securities broker providing trading through DMA or other order submission channels shall in all instances faithfully comply with relevant securities market regulations and implement information and communications security and risk control, and shall refrain from any practice that could affect the order and efficiency of the centralized securities exchange market.
- If during a securities broker's operation of DMA any irregularity occurs that is likely to affect orderly market trading, the TPEx may request the securities broker to halt, restrict, or prohibit access to DMA by any, a part, or all of its clients.
- With respect to trading orders and inquiries submitted by principals through DMA, the securities broker shall preserve the order records and computer audit logs for at least 5 years, provided, if there is any dispute with respect to a trading order, it shall preserve them until the dispute is resolved.
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