| Article 21 |
If the Underlying Security of a Single Stock Futures Contract is a stock, and any of the following circumstances applies to the issuer, the TAIFEX shall adjust the terms and conditions of the contract and publicly announce the adjusted contract content prior to the effective date of the adjustment:
- Distribution of cash dividends.
- Conversion of capital reserves or earnings into capital.
- Cash capital increase. However, this shall not apply if the shareholders do not have preemptive rights to subscribe common shares.
- The company will be a non-surviving company after a corporate merger.
- Capital reduction. However, this shall not apply to cancellation of shares upon share repurchase or upon a shareholder's waiver of shares in accordance with regulations.
- Exchange of shares for those of a subsidiary of another company.
- Any other event causing a change to the name, type, or quantity of shares held by shareholders, or distribution of other benefits to shareholders.
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| Article 21-1 |
If the Underlying Security of a Single Stock Futures Contract is a beneficial certificate, and there is any of the following circumstances, the TAIFEX shall adjust the contract terms and publicly announce the adjusted terms prior to the date on which the adjustment takes effect:
- A distribution of income.
- The fund will be a non-surviving fund after a merger.
- Any other circumstance causing a change in the name, type, or number of beneficial certificates held by beneficial owners, or the receipt of a distribution of other benefits.
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| Article 22 |
The effective date of Single Stock Futures Contract adjustment shall be the second business day prior to the book closure date of the Underlying Securities or the date of suspension of changes to entries in the register of beneficial owners. However, this shall not apply if the Underlying Security is a stock and any of the following circumstances applies to the issuer:
- In the case of a statutory consolidation or an exchange of shares for those of a newly established company, the effective date of Contract adjustment shall be the record date of the merger or the record date of the share exchange.
- In the case of a capital reduction to cover losses, or a capital reduction by returning share capital in cash only, the effective date of Contract adjustment shall be the date when the trading of the Underlying Securities is resumed.
On a case-by-case basis, the TAIFEX may otherwise set the date of Contract adjustment referred to in the preceding paragraph.
A trader shall handle all trading and liquidation operations in compliance with the content of the post-adjustment Single Stock Futures Contract, both for positions in the futures contract already held prior to the effective date of contract adjustment and those opened thereafter.
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| Article 23 |
After a Single Stock Futures Contract is adjusted, the ticker symbol shall be changed, provided that this shall not apply when the adjustment is only to the addition to the buy-side equity amount and the deduction from the sell-side equity amount or to the last trading day.
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| Article 24 |
If the Underlying Security of a Single Stock Futures Contract is a stock and the issuer makes a cash dividend distribution, adjustment of the Single Stock Futures Contract pursuant to Article 21, subparagraph 1 shall be carried out as follows:
- For buy-side and sell-side positions held in Single Stock Futures Contracts at close of the regular trading session on the business day preceding the effective date of contract adjustment (i.e., the ex-dividend date of the Underlying Securities), the addition to the buy-side equity amount and the deduction from the sell-side equity amount shall be adjusted on the effective date of contract adjustment or the after-hours trading session preceding the effective date of contract adjustment, by the equivalent of the cash dividend amount received on the quantity of shares of the Underlying Securities as defined in Article 12, with amounts of less than NT$1.00 unconditionally rounded down. The adjustments shall be carried out in accordance with the TAIFEX Operation Directions for Clearing and Settlement Operations by Futures Commission Merchants and Clearing Members.
- The Underlying Assets of the post-adjustment contract are the ex-dividend securities, exclusive of cash dividend distribution received.
Public announcement of the amount of the adjustment made pursuant to the preceding paragraph shall be made together with the public announcement for Article 21, subparagraph 1.
Where contract adjustment is made in any circumstance under subparagraphs 2 and 3 of Article 21, the Underlying Assets shall be adjusted to the total of the following items:
- The quantity of shares of the ex-rights Underlying Securities as defined in Article 12.
- Gratis capitalization issue or certificates of entitlement to new shares, allocated to the quantity of shares of the Underlying Securities as defined in Article 12.
- Fair value of preemptive rights to participate in cash capital increase granted to the quantity of shares of the Underlying Securities as defined in Article 12, rounded down to the New Taiwan Dollar.
The "fair value of preemptive rights to participate in cash capital increase" of subparagraph 3 of the preceding paragraph is computed as follows:
- The difference between the closing price of the Underlying Securities on the deadline for payment [for shares] and the subscription price of the cash capital increase, multiplied by the number of shares that may be subscribed with the preemptive rights to participate in the cash capital increase granted to the quantity of shares of the Underlying Securities as defined in Article 12. Provided, where the closing price of the Underlying Securities on the deadline for payment is lower than the subscription price of the cash capital increase, computation is excluded.
- Where the deadline for payment under the preceding subparagraph is later than the final settlement date, the difference between the closing price of the Underlying Securities on the final settlement date and the subscription price of the cash capital increase, multiplied by the number of shares that may be subscribed with the preemptive rights to participate in the cash capital increase granted to the quantity of shares of the Underlying Securities as defined in Article 12. Provided, where the closing price of the Underlying Securities on the final settlement date is lower than subscription price of the cash capital increase, computation is excluded.
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| Article 24-1 |
If the Underlying Security of a Single Stock Futures Contract is a beneficial certificate, and the issuer makes a distribution of income, adjustment of the Single Stock Futures Contract pursuant to Article 21-1, subparagraph 1 shall be carried out as follows:
- For buy-side and sell-side positions held in Single Stock Futures Contracts at close of the regular trading session on the business day preceding the effective date of contract adjustment (i.e., the ex-dividend date of the Underlying Securities), the addition to the buy-side equity amount and the deduction from the sell-side equity amount shall be adjusted on the effective date of contract adjustment or the after-hours trading session preceding the effective date of contract adjustment, by the equivalent of the income distribution amount received on the Underlying Securities in the quantity of the Underlying Assets as defined in Article 12, with amounts of less than NT$1.00 unconditionally rounded down. The adjustments shall be carried out in accordance with the TAIFEX Operation Directions for Clearing and Settlement Operations by Futures Commission Merchants and Clearing Members.
- The Underlying Assets of the post-adjustment contract are the ex-dividend securities, exclusive of the income distribution received.
Public announcement of the amount of the adjustment made pursuant to the preceding paragraph shall be made together with the public announcement for Article 21-1, subparagraph 1.
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| Article 25 |
A contract adjustment under Article 21, subparagraph 4 or 6 shall be made in the following manner:
- If the shareholders of the issuer of the Underlying Securities receive distribution only of stock of a single company, and the distributed stock is, on the effective date of Contract adjustment, the Underlying Securities of a Single Stock Futures Contract listed by the TAIFEX, the Underlying Assets shall be adjusted to the distributed stocks or certificates of entitlement to new shares, in the same amount as the quantity of shares of the Underlying Securities as defined in Article 12 may be exchanged for the shares of the distributed stock. If cash distribution is received at the same time, however, the distributed cash shall be subject mutatis mutandis to the provisions of Article 24, paragraph 1, subparagraph 1.
- When the distribution received by the shareholders of the issuer of the Underlying Securities is other than the interests referred to in the preceding subparagraph, the Single Stock Futures Contracts that have the stock of the company as Underlying Securities shall be delisted from the TAIFEX.
On a case-by-case basis, the TAIFEX may otherwise provide for Contract adjustment referred to in the preceding paragraph.
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| Article 25-1 |
A contract adjustment under Article 21-1, subparagraph 2 shall be made in the following manner:
- If the beneficial owners of the Underlying Securities receive distribution only of a single type of beneficial certificate, and the distributed beneficial certificates are, on the effective date of Contract adjustment, the Underlying Securities of a TAIFEX Single Stock Futures Contract, the Underlying Assets shall be adjusted to the distributed beneficial certificates, and the quantity shall be the quantity of the distributed beneficial certificates for which the quantity of the Underlying Securities of the Underlying Assets as defined in Article 12 may be exchanged. If cash distribution is received at the same time, however, the distributed cash shall be subject mutatis mutandis to the provisions of Article 24-1, paragraph 1, subparagraph 1.
- When the distribution received by the beneficial owners of the Underlying Securities is not the interests referred to in the preceding subparagraph, the Single Stock Futures Contracts that have the beneficial certificates as the Underlying Securities shall be delisted from the TAIFEX.
On a case-by-case basis, the TAIFEX may otherwise provide for Contract adjustment referred to in the preceding paragraph.
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| Article 26 |
A contract adjustment under Article 21, subparagraph 5 shall be made in the following manner:
- When the issuer of the Underlying Securities carries out a capital reduction to cover losses, the Underlying Assets shall be adjusted to the Underlying Securities after capital reduction, by the quantity of shares as defined in Article 12 less the number of shares representing the percentage of the capital reduction.
- When the issuer of the Underlying Securities carries out a capital reduction in connection with return of share capital:
- When the shareholders receive only a cash distribution, the Underlying Assets shall be adjusted to the Underlying Securities after capital reduction, by the quantity of shares as defined in Article 12 less the number of shares representing the percentage of the capital reduction; any cash distributed shall be subject mutatis mutandis to the provisions of Article 24, paragraph 1, subparagraph 1.
- When the distribution received by the shareholders is other than the interests referred to in the preceding item, the last trading day for each of the listed contracts shall be adjusted to the third business day prior to the book closure date of the Underlying Securities.
- When the issuer of the Underlying Securities carries out a capital reduction in connection with demerger:
- When the issuer of the Underlying Securities is a surviving company, and the shareholders receive distribution of non-cash interests, the last trading day of each of the listed contracts shall be adjusted to the third business day prior to the book closure date of the Underlying Securities.
- When the issuer of the Underlying Securities is not a surviving company, and the shareholders receive distribution only of stock of a single company, and the distributed stock is, on the effective date of Contract adjustment, the Underlying Securities of a Single Stock Futures Contract listed by the TAIFEX, the Underlying Assets shall be adjusted to the distributed stocks or certificates of entitlement to new shares, in the same amount as the quantity of shares of the Underlying Securities as defined in Article 12 may be exchanged for the shares of the distributed stock.
- When the issuer of the Underlying Securities is not a surviving company, and the distribution received by the shareholders is other than the interest referred to in the preceding item, the Single Stock Futures Contracts that have the stock of the company as Underlying Securities shall be delisted from the TAIFEX.
On a case-by-case basis, the TAIFEX may otherwise provide for Contract adjustment referred to in the preceding paragraph.
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| Article 27 |
The TAIFEX may execute contract adjustments under Article 21, subparagraph 7, or Article 21-1, subparagraph 3, on a case-by-case basis.
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| Article 28 |
Where during its duration an adjusted contract is subject to further adjustment under Article 21 or Article 21-1, the Underlying Securities of the Underlying Assets shall be adjusted pursuant to the relevant provisions of Articles 24 through 27, and the quantity of the Underlying Assets shall be calculated as the number of shares or units of the Underlying Securities subsequent to the prior adjustment of the contract.
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| Article 29 |
The TAIFEX will add no new contract months for the pre-adjustment version of a contract that has been adjusted; any contract month of such a contract that has zero open positions after close of the regular trading session on any business day will be delisted from the next trading session, provided that this shall not apply when the only adjustment made is the adjustment under Article 21, subparagraph 1 or Article 21-1, subparagraph 1.
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| Article 30 |
On the effective date of a contract adjustment under Article 21 or Article 21-1, the TAIFEX may add listings of new contract months, for the quantity of the Underlying Securities defined in Article 12.
Article 15, paragraph 1 shall apply mutatis mutandis to the additional listing of new contract months under the preceding paragraph.
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| Article 31 |
Upon adjustment of a Single Stock Futures Contract in any circumstances under Article 21 or Article 21-1, the position limit shall be computed by inclusion of all types of futures with the same Underlying Securities held by the trader; if there is any adjustment in the number of Underlying Securities, it shall also be based upon the total number of shares or the total number of units of the Underlying Assets.
Adjustment contents and reversion dates for position limits under the preceding paragraph shall be publicly announced by the TAIFEX.
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