| Article 1 |
These Regulations are adopted pursuant to Article 43, paragraph 3 of the Operating Rules of the Taiwan Futures Exchange Corporation ("TAIFEX").
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| Article 2 |
Block trading may be done by continuous trading or price negotiation. However, for Flexible Futures it may be done by price negotiation only.
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| Article 3 |
Unless otherwise provided, the quantity thresholds for a block trade order shall be as follows:
- For futures contracts:
- A minimum of 50 of the same contract per trade order for forex, gold futures, or Flexible Futures.
- A minimum of 100 of the same contract per trade order for Taiwan Stock Exchange Stock Index (TAIEX) Futures and Mini-TAIEX Futures.
- A minimum of 200 of the same contract per trade order for futures other than those specified in the preceding two items.
- For option contracts:
- A minimum of 100 of the same contract per trade order for forex or gold options.
- A minimum of 200 of the same contract per trade order for Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) Options.
- A minimum of 400 of the same contract per trade order for options other than those specified in the preceding two items.
Contracts eligible for block trading under subparagraph 1, items A and C, and subparagraph 2, items A and C, of the preceding paragraph will be separately announced by the TAIFEX after their approval and recordation by the competent authority.
The minimum price movement (tick) for a block trade order shall be governed by the trading rules of the corresponding futures or option contract with respect to the tick size, except that the minimum price movement for TAIEX Options shall be the minimum fluctuation for the lowest quotation bracket.
The price limits for a block trade order shall be governed by the trading rules of the corresponding futures or option contract with respect to the daily price limit or premium price limit.
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| Article 4 |
The trading hours for block trades shall be governed by the trading rules of the corresponding futures or option contract.
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| Article 5 |
A block trade order is classified as a single order if the order is for a single contract, or as a combination order if the order requires simultaneous execution of trades for different contracts.
A price quote for a combination order under the preceding paragraph shall give a separate price quote for each contract. The quantity quoted for each contract must meet the requirements of Article 3, paragraph 1, with the exception of futures contracts in a combination order that consists of futures and option contracts with the same underlying.
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| Article 6 |
Any block trade order placed through continuous trading must be a limit order, and be valid only for the current trading session, and may be specified as an immediate-or-cancel ("IOC") order or a fill-or-kill order ("FOK").
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| Article 7 |
In the case of a block trade placed through continuous trading, if a futures commission merchant ("FCM") applies to alter the order, it shall first cancel the original order and then place a new one.
In the case of a block trade order made through price negotiation, an application to cancel the order may be made prior to TAIFEX confirmation of the trade.
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| Article 8 |
An order for a block trade placed through continuous trading may only be matched with other block trade orders that are also placed through continuous trading. The following principles determine the order of priority for the continuous trading of block orders:
- For single orders, a buy order with a higher bid price shall have priority over that with a lower bid price; a sell order with a lower ask price shall have priority over that with a higher ask price. For orders placed at the same price, the priority shall be determined by the chronological order in which they are placed.
- For combination orders, the contracts, prices, and quantities quoted in the orders of each party to a trade must be identical, and priority shall be determined by the chronological order in which they are placed.
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| Article 9 |
In the case of block trade orders made through price negotiation, the buyer and seller, after setting the price, shall immediately place the trade order in accordance with the following provisions. The trade will be executed only after review and confirmation by the TAIFEX:
- When the buying and selling traders belong to the same futures commission merchant, the futures commission merchant shall first register with the TAIFEX the order placement code, futures commission merchant code, futures contract code, price, and quantity, after which it shall report the respective traders' account numbers, trade order form numbers, the type of futures contract being traded, the quantity of the trade, the price, and other particulars that must be reported.
- When the buying and selling traders belong to different futures commission merchants, they shall designate one futures commission merchant to represent them in registering with the TAIFEX the order placement code, futures commission merchant codes, futures contract code, price, and quantity, after which each futures commission merchant shall respectively report their trader's account numbers, trade order form numbers, the type of futures contract being traded, the quantity of the trade, the price, and other particulars that must be reported.
If a trade order made pursuant to the preceding paragraph is not completed within 10 minutes after being registered, the trade order will be void.
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| Article 10 |
Information on the execution of block trade orders and information on block trade orders placed through continuous trading will be shown in real time on the TAIFEX website.
Block trade orders and the prices at which they are executed shall not be taken as the basis for determining opening prices, closing prices, easing of price limits, or daily settlement prices, nor shall they be taken as the basis for recording day-high and day-low traded prices.
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| Article 11 |
FCMs shall collect full margins prior to accepting block trade orders, and the TAIFEX’s rules governing day trading margin calculation and collection are not applicable to block trading.
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| Article 12 |
For matched block trade positions, FCMs shall, on a trade record basis for each trading account, aggregate the position structure and quantity, margin payment and collection amounts, and margin call amounts.
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| Article 13 |
For matters not provided for in these Regulations, the relevant TAIFEX rules shall apply mutatis mutandis.
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| Article 14 |
These Regulations and any amendments hereto shall take force upon promulgation following approval by the Competent Authority.
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