| Article 1 |
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| Article 2 |
The TPEx shall establish a dedicated unit to carry out these Regulations. A Surveillance Operations Oversight Committee [the "Committee"] shall also be formed by the executive officers of the following units:
- Listing Supervision Department
- Listing Examination Department
- Trading Department
- Auditing Department
- Information Department
- Bond Department
- Other designated units or personnel
The Committee shall be responsible for drafting and planning the surveillance system and coordinating with relevant units. A vice president shall be responsible for overseeing surveillance operations and periodically convening the Committee. Where necessary, an extraordinary Committee meeting may be convened
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| Article 3 |
Where a securities firm carries out securities trading through the TPEx's automated trade matching system or electronic bond trading system, and where any such trading is found to be irregular to a certain degree, the TPEx shall publicly announce the name of the securities firm and the trading information to alert investors.
The TPEx shall separately prescribe how to determine and to announce the trading irregularities referred to in the preceding paragraph.
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| Article 4 |
When trading irregularity as specified in the preceding Article is likely to seriously affect trading on the TPEx, the TPEx shall promptly make a public announcement to the market, and may take the following measures:
- Conduct trade matching for the securities with manually controlled trade matching terminals.
- Restrict the amount of the securities that individual securities firms can buy and sell.
- Instruct securities brokers to collect a certain percentage of purchase price or securities sold, as the case may be, from principals who place a large order for securities that are being traded irregularly.
- Notify all securities firms to make an additional submission to the Clearing and Settlement Fund when trading the securities involved in the irregular trading.
- Temporarily halt margin purchases and short sales of those securities
- Report to and obtain the permission of the Competent Authority to suspend the trading of those securities for a certain period.
The TPEx shall separately prescribe the standards, manner, and duration of the measures in the preceding paragraph.
When it is deemed that there is an irregularity in securities trading that might have a serious effect on the security of market settlement, or when otherwise deemed necessary, the measures under paragraph 1, or other measures for disposition, may be taken in accordance with a resolution of the Business Supervisory and Guidance Commission, and after reporting to the competent authority for approval, trading of the securities may be suspended for a specified period.
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| Article 5 |
When the TPEx discovers any irregularity in securities trading or trade orders, it may issue notice prior to market opening or during trading hours requesting attention by securities firms trading on the TPEx and may, pursuant to article 92 of the Rules, query or review relevant information from securities firms and the TPEx listed company, or require them to provide information explaining such trading. When necessary, the TPEx may publicly announce this explanatory information through information systems or at the places of business of securities firms.
When necessary, the special management committee of the Joint Responsibility System Clearing and Settlement Fund may be notified of an irregularity in securities trading as referred to in the preceding paragraph.
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| Article 6 |
Where a securities firm violates these Regulations, or fails, when engaging in consigned purchase or sale of irregularly traded securities, to duly carry out client account opening, credit investigation, investment ability assessment, or trading order-taking operations, the TPEx may, according to the seriousness of the violation, notify the securities firm to make corrections, warn the securities firm, or restrict or suspend trading by the securities firm under Articles 93, 94, and 97 of the Rules.
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| Article 7 |
The TPEx, upon investigating and following up on any irregular trading activity, shall promptly establish a complete file of relevant information for review and verification. The TPEx shall promptly respond to any violation of its rules, and where there is any suspected violation of an act or regulation, shall directly report the violation to, or submit an investigative report on the violation to, the competent authority.
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| Article 8 |
The TPEx shall, upon investigation and confirmation, publicly announce any market rumors or false media reports through information systems or at the places of business of securities firms.
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| Article 9 |
These Regulations and any amendments hereto shall be promulgated and implemented on the prescribed date after approval and recordation by the competent authority.
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