Article 13 |
When a securities firm, upon occurrence of an erroneous buy trade or erroneous sell trade, sells the erroneously bought securities, or buys in securities to replace the erroneously sold securities, through its error account on the trade day, the operation shall proceed in accordance with the following procedure:
- By 10 a.m. on the second business day after the trade date, after reporting the erroneous buy or erroneous sell trade to TWSE or TPEx, the securities firm shall notify TDCC through TWSE or TPEx. On that day, after the erroneously bought securities are transferred to the customer's account involved in the erroneous buy trade, or the buy-in securities are transferred to the securities firm's error account, TDCC will on its own initiative carry out a transfer of securities and transfer the erroneously bought securities to the securities firm's error account, or transfer the buy-in securities to the customer's account involved in the erroneous sell trade, and then the trade will be offset automatically.
- If the "order type" reported by the securities firm is "margin trade," the operation shall proceed in accordance with TDCC's Directions for the Handling by Participants of Book-Entry Operations for Margin Purchase and Short Sale Business.
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Article 14 |
When a securities firm, upon occurrence of an erroneous buy trade or erroneous sell trade, fails to sell the erroneously bought securities, or to buy in securities to replace the erroneously sold securities, through its error account on the trade day, the operation shall proceed according to the following procedures:
- In the case of an erroneous buy trade
- On the second business day after the trade date, after reporting the erroneous buy trade to TWSE or TPEx, the securities firm shall notify TDCC through TWSE or TPEx. On that day, after the erroneously bought securities are transferred to the customer's account involved in the erroneous buy trade, TDCC will on its own initiative carry out a transfer of securities and transfer the erroneously bought securities to the securities firm's error account.
- If the "order type" reported by the securities firm is "margin trade," the operation shall proceed in accordance with TDCC's Directions for the Handling by Participants of Book-Entry Operations for Margin Purchase and Short Sale Business.
- In the case of an erroneous sell trade
- By 10 a.m. on the second business day after the trade date, after reporting the erroneous sell trade to TWSE or TPEx, the securities firm shall notify TDCC through TWSE or TPEx. TDCC will then immediately make an adjustment to the customer's account involved in the erroneous sell trade by changing the sold securities in that account to sold securities in the securities firm's error account. TDCC will also on its own initiative carry out a transfer of securities for the portion that requires a securities loan application and transfer the securities borrowed through the loan application from the SBL account to the error account temporarily in lieu of securities settlement.
- TDCC will borrow securities based on TWSE's or TPEx's notification; if TDCC is unable to obtain securities through borrowing, TWSE or TPEx will issue a securities delivery voucher in lieu of securities settlement.
- On the day securities are bought in to replace the erroneously sold securities and credited to the error account, TDCC will, based on TWSE's or TPEx's notification, transfer the buy-in securities to TWSE's or TPEx's SBL account for return of securities.
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Article 15 |
When a securities firm reports to offset an erroneous buy trade and an erroneous sell trade occurring to the same type of securities on the same trade date, the operation shall proceed in accordance with the following procedure:
- By 10 a.m. on the second business day after the trade date, after reporting the offsetting of the erroneous buy and erroneous sell trades to TWSE or TPEx, the securities firm shall notify TDCC through TWSE or TPEx. On that day, after the erroneously bought securities are transferred to the customer's account involved in the erroneous buy trade, TDCC will on its own initiative carry out transfers of securities and transfer the erroneously bought securities to the securities firm's error account and transfer the erroneously sold securities from that error account to the customer's account involved in the erroneous sell trade, and then the trades will be offset automatically.
- If the "order type" reported by the securities firm is "margin trade," the operation shall proceed in accordance with TDCC's Directions for the Handling by Participants of Book-Entry Operations for Margin Purchase and Short Sale Business.
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Article 16 |
When a securities firm, upon occurrence of an erroneous sell trade, applies to use its proprietary securities to offset the trade, the operation shall proceed in accordance with the following procedure:
- By 10 a.m. on the second business day after the trade date, after reporting the use of its proprietary securities to offset the erroneous sell trade to TWSE or TPEx, the securities firm shall notify TDCC through TWSE or TPEx. TDCC will then on its own initiative carry out a transfer of securities and transfer the erroneously sold securities from the securities firm's error account to the customer's account involved in the erroneous sell trade. The securities firm shall perform transaction 130 to transfer the offsetting proprietary securities to its error account and complete the settlement.
- After securities are bought in to replace the erroneously sold securities and credited to the error account, the securities firm shall perform transaction 130 to transfer the buy-in securities back to its proprietary account.
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Article 17 |
If a securities firm fails to report an erroneous sell trade and also fails to complete the settlement of securities by 10 a.m. on the second business day after the trade date, TWSE or TPEx will notify TDCC to handle securities borrowing and return operations with respect to the securities firm in accordance with TDCC's Directions for the Handling by Participants of Book-Entry Operations for Securities and Money Borrowing and Lending.
If a securities firm reports an erroneous sell trade to TWSE or TPEx after 10 a.m. on the second business day after the trade date, TDCC will only record the reported information.
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Article 17-1 |
In the case of a day trade, after 10 a.m. on the second business day after the trade date, the securities firm may report an out-trade to TWSE or TPEx only for the portion of the net difference after offsetting the buy and sell trades of the day trade.
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Article 18 |
If it is on record that a securities firm has reported a failed trade in accordance with applicable TWSE or TPEx provisions, when the securities firm reports an out-trade for the same trade, the operation shall proceed according to the following procedures:
- In the case of an erroneous buy trade By the third business day after the trade date, after reporting the erroneous buy trade to TWSE or TPEx, the securities firm shall notify TDCC through TWSE or TPEx and shall on its own perform a "Deposited Securities Correction and Account Transfer" transaction (transaction code: 131) ("transaction 131") to transfer the erroneously bought securities from the customer's account involved in the erroneous buy trade to the securities firm's error account.
- In the case of an erroneous sell trade
- By the third business day after the trade date, after reporting the erroneous sell trade to TWSE or TPEx, the securities firm shall notify TDCC through TWSE or TPEx. On the first business day after the report, TDCC will borrow securities; if TDCC is unable to obtain securities through borrowing, TWSE or TPEx will issue a securities delivery voucher in lieu of securities settlement.
- On the day securities are bought in to replace the erroneously sold securities and credited to the error account, TDCC will, based on TWSE's or TPEx's notification, transfer the buy-in securities to TWSE's or TPEx's SBL account for return of securities.
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