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Reporting procedures for trading of TPEx listed stock through omnibus trading accounts
- Trading:
- The rules governing quantities 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.
- If there is a change to the principals covered by the statement, the new statement of principals shall be delivered to the securities firm within 5 business days after the securities firm submits its trade allocation details, or transmitted to the securities firm within three business days after submitting the trade allocation details, using a form of notification (fax or electronic transmission) agreed between the securities firm and the authorized trader.
- A securities firm accepting orders to trade securities through an omnibus trading account shall retain comprehensive records of trade orders placed, the original execution reports, and the itemized trade allocation information in accordance with the TPEx's Required Periods for Preservation of Accounting Statements and Vouchers by Securities Firms. The itemized trade allocation information mentioned above shall contain information including the securities firm's code number, the omnibus trading account number, the securities code, whether the trade was a purchase or sale, whether the trade is an odd lot or round lot trade, the order serial number, the allocated investor account numbers, the allocated number of trade units (or shares), the allocated total monetary amount of the trade, and the securities trade category.
- 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. If reported itemized trade allocation information is found to contain one or more breaches by the principal of the trading quota, a single trading quota violation to the omnibus account will be recorded. When an omnibus trading account accrues more than 10 violations in a single month, the TPEx may impose a penalty on the respective securities firm in accordance with applicable regulations.
- 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 itemized trade allocation information, 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.
- When a securities firm accepts an order to trade securities through an omnibus trading account, if 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.
- When, pursuant to the Standard Directions for Internal Control Systems in Securities Firms, a securities firm makes its sampling calculations of the amounts of trades of the principals, for any trade made by a principal through an omnibus account, the securities firm shall substitute the amount of the trade allocated from the omnibus account for the amount of the trading order, and add it to the amount of any trades made by the principal through a non-omnibus account.
- Reporting of trade allocations and pre-allocation account number corrections:
- A securities firm that accepts an order for a securities trade to be handled through other than an omnibus trading account may, on the trade date or the first business day after the trade date, report a correction of the account number to the omnibus account, combine the order with the total amount and quantity of the same securities transacted through the omnibus trading account, and proceed with trade allocation operations. In addition, when a securities firm accepts orders for securities trades to be handled through the omnibus account, it may also, on the trade date or the first business day after the trade date, report a correction of the account number to an account other than the omnibus account, then proceed to make the trade allocation report. Securities firms must revise their reporting of itemized trading order information in accordance with the provisions of 3.3 of these Directions.
- A securities firm shall report itemized allocation information for each individual security on the date of the trade. The aggregate trade amount and quantity reported across all principals must equal exactly the aggregate trade amount and quantity of the respective securities trades through the omnibus trading account on that day after account number correction, and the securities firm shall submit the itemized trade allocation information to the TPEx between 3 p.m. and 6 p.m. on the same day, in the prescribed electronic format. However, if the securities firm has not yet been able to complete the trade allocation for an omnibus trading account with foreign principals (securities trading account number: 995555+check code), it may, by 6 p.m. 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 its itemized partially adjusted allocation pursuant to 3.4 of these Directions. If the securities firm needs to amend an allocation after reporting itemized allocation information on the trade 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 trade information for the omnibus account, once again report account number corrections as needed, followed by reporting of the itemized trade allocation information.
- A securities firm may follow the authorized trader's instruction to allocate shares traded during the normal trading session and the after-market fixed-price trading session in odd lots or round lots (1,000 shares per lot) for the principal. Allocations that are made in round lots may not exceed 10,000 trade units per single allocation. Allocations in odd lots or for odd-lot trades may not exceed 999 shares. In addition, allocations in round lots must be reported separately from allocations in odd lots.
- The total traded amount of any individual security that a securities firm allocates to any principal in round lots, pursuant to the instructions of the authorized trader, shall be reported in integer multiples of NT$10. In addition, the total traded 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 trade quantity of such allocations shall be reported as multiples of one share.
- For block trades that are placed through the omnibus trading account and allocated according to the authorized trader's instructions, the amount of each allocated trade may be reported in New Taiwan Dollars, dimes, or cents; whereas the quantity shall be reported in multiples of one share. The itemized allocation information shall distinguish between the normal trading session, after-market fixed-price trading, and odd-lot trading, and is not subject to the quantity, category, and amount restrictions stated in the TPEx's Rules Governing Block Trading of Listed Securities. Also, the provisions of 3.2.A herein are not applicable to block trades.
- A securities firm may enter the difference between the securities firm's reported total trade amounts for each principal and the amount of the principal's actual settlements into accounts as "other operating revenues" or "other operating expenses."
- If the trade price of any security calculated from the itemized trade allocation information is unreasonable or unfair, such as by exceeding the maximum or minimum price for that day's trades through the omnibus trading account, the TPEx may announce the authorized trader's name and related information and notify the principals of the allocated trade.
- A securities firm shall report the details of the trade orders placed by principals or authorized traders to the TPEx by 6 p.m. on the first business day after the trade date using the prescribed electronic format. In accordance with operational needs, the TPEx may at any time require a securities firm to provide execution reports for trades 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 securities 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 quantities of the trading orders. One or more code numbers may be used by the same authorized trader or principal, and the TPEx may require the securities firm to provide detailed information relating to a particular principal or authorized trader.
- A securities firm may report a partial adjustment of allocation with respect to the trade information under 3.2.B of these Directions by 6 p.m. on the first business day after the trade date. All total trade amounts and total trade quantities 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 quantities of trades 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 trade, 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 trade 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 trade information for the omnibus account, once again report account number corrections as needed, followed by a report of the itemized trade allocation information.
- For itemized trade allocation information submitted by securities firms on the trade 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 be made only to foreign principals. For those for omnibus trading accounts with the securities trading account number "885555+check code", the allocations may be made only to domestic principals.
- Reporting procedures for out-trades and account number corrections subsequent to trade execution and allocation
A securities broker shall report out-trades and account number corrections by 10 a.m. of the second business day following the trade date, for the securities trading account of each principal subsequent to allocation, pursuant to the following rules:
- 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.
- 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 cancel the previous post-allocation out-trade report, then report the partial adjustment of allocation.
- If, after reporting correction of an account number, the securities firm intends to report a partial adjustment of allocation, it shall first cancel the previous post-allocation account number correction and then report the partial adjustment of allocation.
- Reporting of margin trades and securities borrowing.
- The total pre-allocation and post-allocation quantities of trades for any individual security in any trade category must be the same.
- If a securities firm wishes to report a change in the category of a trade to a short sale or a sale of borrowed securities, the price at which the order was placed and the allocated trade price shall conform to the restriction that the short selling of securities or the selling of borrowed securities may not be done at a price lower than the last trade matched by the automated trade matching system in the previous business day.
- No partial adjustment of allocation may be reported on the business day following the trade date of a trade in any category that is a margin trade.
- If, after combining all securities traded through a principal's own account and through the omnibus trading account, it occurs that the principal has made margin purchases and short sales of the same type of security at the same quantity, it shall be handled in accordance with the applicable provisions of the Operating Rules for Securities Firms Handling Margin Purchases and Short Sales of Securities.
- When a securities firm accepts orders for margin purchases or short sales through the omnibus trading account, the authorized trader shall be responsible for enforcing the trading limit of each principal and determining whether there is available limit to proceed with the requested margin purchase or short sale. If, after the allocation is made, a principal is found to have breached the trade quota limit or made any margin purchase or short sale without eligibility to do so, the securities firm shall handle the matter in accordance with the applicable provisions of the TPEx Directions for Securities Firms Handling Changes to Trade Categories.
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Reporting procedures for trading of Emerging Stocks through omnibus trading accounts.
- Trading:
- When a securities firm accepts orders to trade Emerging Stocks through an omnibus trading account, the itemized trade allocation information shall include the trade date, securities firm code, account number of the omnibus trading account, securities code, whether the trade was a purchase or sale, the order number, the pre-allocation trade number, the allocated investor account numbers, the allocated numbers of shares traded, the allocated monetary amounts, and the recommending securities firm (trade counterparty).
- Subparagraphs A and B, and the provisions of subparagraph C regarding the required periods for preservation of accounting statements and vouchers, and subparagraphs D, F and G, of paragraph 1 of Point 3 of these Directions shall apply mutatis mutandis to the trading of Emerging Stocks.
- Trade allocations and pre-allocation account number corrections (referring to error correction or trade cancellation):
- When a securities firm accepts orders to trade Emerging Stocks through an omnibus trading account, it may on the trade date report a correction of the account number to an account other than the omnibus trading account; when it accepts orders to trade Emerging Stocks through an account other than an omnibus trading account, it may also on the trade date report a correction of the account number to an omnibus trading account, and then proceed to make the trade allocation report.
- A securities firm shall report itemized allocation information for each individual security on the trade date. The aggregate trade amount and quantity reported for all principals must exactly equal the aggregate trade amount and quantity of the respective securities trade through the omnibus trading account on that day after account number correction, and the securities firm shall submit the itemized trade allocation information to the TPEx between 4 p.m. and 6 p.m. on the same day. However, if the securities firm has not yet been able to complete the trade allocation operations for an omnibus trading account with foreign principals (securities trading account number: 995555+check code), it may by 6 p.m. 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 complete the operations for reporting the itemized trade allocation information between 9 a.m. and 6 p.m. on the first business day following the trade date.
- The total trade amount of any individual security that a securities firm allocates to any principal pursuant to the instructions of the authorized trader may be reported in New Taiwan Dollars, dimes, or cents, and the total allocated trade quantity shall be reported as integer multiples of one share (unit).
- Point 3, paragraph 2, subparagraphs F and G shall apply mutatis mutandis to trade allocations and pre-allocation account number corrections for Emerging Stocks.
- A securities firm shall report the itemized information on the trading orders of each principal or authorized trader to the TPEx by 6 p.m. on the first business day after the trade date. The itemized information on trading orders referred to above shall include the order date, securities firm code, the omnibus trading account number, the securities code, whether the trade was a purchase or a sale, the order number, the code numbers and names of the principals or authorized traders, and the quantities of the trading orders. One or more code numbers may be used by the same principal or authorized trader. As dictated by the TPEx's operational needs, the TPEx may require the securities firm to provide related information in a timely manner.
- For itemized trade allocation information submitted by securities firms on the trade date and 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.
- Reporting of account number corrections and adjustment of trade allocations subsequent to trade execution and allocation.
- If after reporting a trade allocation the securities broker discovers an error in the brokerage trade, and cannot complete settlement for the Emerging Stock, it may, between 9 a.m. and 6 p.m. on the first business day after the trade date, apply with the TPEx to cancel the original trade allocation report; if it is necessary to correct the account number or adjust the trade allocation, it shall do so at the same time.
- All total trade amounts and total trade quantities for individual securities allocated to all principles after adjustment of allocation on a given day must be the same as the total amounts and total quantities of trades of individual securities through the omnibus trading account, on the same day, after account number corrections.
- The provisions regarding delayed settlement in Article 33 of the TPEx Rules Governing the Trading of Emerging Stocks on the TPEx shall not apply to Emerging Stock traded by a securities firm accepting an order for brokerage trading through an omnibus trading account.
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