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When an election of central or local public servants or a by-election or recall of the Taipei mayor takes place, trading on the TPEx market will be suspended, all securities firms trading on the TPEx market will suspend business activities on that day, and any settlement matters due to be conducted on that day will be postponed accordingly.
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On any voting day other than one for the election, by-election, or recall of public servants specified in the preceding paragraph, trading through the TPEx computerized trading systems will not be suspended. When the Central Election Commission announces that all public and educational institutions in a constituency will be closed, securities firms trading on the TPEx and located in that constituency may, without prejudice to the exercise of voting rights, decide by themselves whether to operate business as usual. Settlement matters due to be handled on that day will be handled by the TPEx in accordance with the following principles, without objection from any securities firm:
- Payments (except for transactions through the Electronic Bond Trading System):
- Payments of a securities firm in the constituency due to be settled on a voting day shall all be handled by its headquarters or a branch of the firm outside the constituency.
- A headquarters in the constituency shall designate a branch outside the constituency to handle the settlement on its behalf. If the designated branch is unable to complete the settlement, the TPEx may advance payment of the settlement amount for the firm using the clearing and settlement fund already deposited by the securities firm. If the funds are not sufficient, the firm may request that the TPEx advance for the firm the settlement amount payable by the firm, to be repaid by the firm after the voting day.
- If the headquarters and branches of the securities firm are all located in the constituency, the TPEx may advance payment of the settlement amount for the firm using the clearing and settlement fund already deposited by the firm. If the funds are not sufficient, the TPEx will advance the payment for the firm to complete the settlement, and the firm shall repay such payment after the voting day.
- If the TPEx advances the settlement amount for the firm using the clearing and settlement fund of the firm, or if the firm requests that the TPEx advance for the firm the settlement amount payable by the firm to complete the settlement, the TPEx may notify the Taiwan Depository and Clearing Corporation to retain in the TPEx's account as security a portion of the securities receivable in the same clearing period that are of an equivalent value.
- Securities (except for transactions through the Electronic Bond Trading System):
For securities due to be settled by a securities firm in the constituency, their settlement by book-entry transfer will be conducted as usual. If the deposited securities in an account to be settled are not sufficient, the TPEx may complete the settlement for the firm with borrowed securities and notify the central depositary to retain in the TPEx's account as security securities receivable in the same clearing period that are of an equivalent value, or to retain a receivable settlement price of an equivalent amount. Such security is not subject to Article 86-1, paragraph 1 of the Taipei Exchange Rules Governing Securities Trading on the TPEx.
- The Electronic Bond Trading System:
All settlements of securities and payment due to be settled by a securities firm in the constituency shall be postponed accordingly, unless the firm's headquarters is located outside the constituency, in which case settlement will be handled as usual. Settlement matters due to be handled on that day will be handled by the TPEx in accordance with the following principles, without objection from any securities firm:
- Payments for bonds: All securities firms trading on the TPEx and located outside the constituency that on the given day are operating and furthermore have payments receivable will temporarily be responsible for a share of payments based on the proportional share of their receivables. Payments made will be returned after the election or recall day has passed.
- Delivery of bonds: All securities firms trading on the TPEx and located outside the constituency that on the given day are operating and furthermore have bonds receivable will temporarily be responsible for a share of bond deliveries based on the proportional share of their receivables. Corresponding transfers will be made after the election or recall day has passed. However, when a proportional amount is less than one trading unit, the TPEx may adjust the proportional shares according to the circumstances.
- If a securities firm is actually unable to proceed with settlement as its headquarters and branches are all outside the constituency and its settlement bank is in another area and unable to operate business as usual due to the election or recall day, the firm shall submit an explanation in writing, and the TPEx may handle the matter as described in Point 2.1.
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Negotiated trades:
- A securities dealer in the constituency that engages in TPEx trading through over-the-counter negotiation shall exercise its own discretion regarding whether to suspend negotiated trade transactions or settlements for such transactions.
- For negotiated trading of emerging stocks in the constituency, the provisions of Point 2 of these Measures shall apply mutatis mutandis. Whether settlement matters for such trades will be postponed shall be determined based on the relevant rules of the Taiwan Depository and Clearing Corporation.
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These Measures, and any amendments hereto, shall be announced and implemented following submission to and approval by the Competent Authority.
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