Article 4 |
Emerging Stocks may be traded through brokerage or dealership and are traded by means of price negotiation. At least one of the two trading parties shall be a recommending securities firm for such Emerging Stocks.
The term "brokerage" in the preceding paragraph means that a securities broker accepts an order from a customer to enter the customer trade order information into the Click System according to a prescribed format and trade with a recommending securities firm through price negotiation; or based on a customer's instructions, trades with a recommending securities firm through price negotiation at the securities firm's place of business pursuant to Article 22.
The term "dealership" in paragraph 1 means that a recommending securities firm trades through price negotiation for its own account with a securities broker or another securities dealer via the Click System, or that a recommending securities firm trades with a customer through price negotiation for its own account at its place of business.
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Article 5 |
When trading Emerging Stocks through price negotiation for its own account at its place of business with a customer, a recommending securities firm may collect in advance the purchase price or the Emerging Stocks to be sold depending on the credit status of the customer.
When receiving a customer order to trade Emerging Stocks, a securities broker may collect in advance the purchase price or the Emerging Stocks to be sold if an assessment shows that the credit status of the customer exceeds its investment capacity.
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Article 5-1 |
Where any overseas Chinese or foreign national who/which has been approved or registered in accordance with the Regulations Governing Securities Investment by Overseas Chinese and Foreign Nationals trades any stock of an Emerging Stock company, if such stock is subject to any investment ratio ceiling set by the respective competent authorities for the relevant industries, it shall be traded through the Emerging Stock Computerized Price Negotiation and Click System.
In the event that the total amount of stock of an Emerging Stock company, and securities convertible or exchangeable into such stock, invested in by overseas Chinese and foreign investors who/which have been approved or registered in accordance with the Regulations Governing Securities Investment by Overseas Chinese and Foreign Nationals exceeds the percentage set under the Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals, the TPEx shall suspend the purchase of such stock by all overseas Chinese and foreign investors.
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Article 6 |
The trading of Emerging Stocks on the TPEx shall be effected on a cash/spot basis; margin transactions are not allowed.
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Article 7 |
A Recommending securities firm shall adopt internal operating rules for the trading of Emerging Stocks through price negotiation to guide its trading of Emerging Stocks through price negotiation.
The TPEx shall prescribe matters required to be specified in the internal operating rules referred to in the preceding paragraph.
The internal operating rules adopted by the recommending securities firm under paragraph 1, and any amendment thereto, shall be approved by the chairperson of the board of directors prior to being reported to the TPEx.
Directions for assessing performance in the trading of Emerging Stocks through price negotiation by recommending securities firms shall be separately prescribed by the TPEx.
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Article 8 |
A securities firm shall operate trading of Emerging Stocks through price negotiation in good faith.
A securities firm shall not, from its place of business or any website belonging to it, link to or form any strategic alliance with any website illegally providing brokerage services for trading of unlisted/non-TPEx listed securities, to covertly attract customers for such website or to solicit customers to trade with it.
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Article 9 |
The TPEx trading hours for Emerging Stocks shall be 9 a.m. to 3 p.m.. However, when the TPEx deems it necessary, it may apply to the competent authority for change of the trading hours.
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Article 10 |
Securities firms providing quotations through the Click System shall be limited to the recommending securities firm for the given Emerging Stocks.
Except as otherwise provided by law or regulation or by rules of the TPEx, price quotations made by a recommending securities firm through the Click System in accordance with these Rules are firm quotes.
The term "firm quote" referred to in the preceding paragraph means a quoted price for which a quoting recommending securities firm shall execute a trade with its trading counterpart as a buyer/seller at the quoted buying/selling price and in the proposed volume.
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Article 11 |
When a trade is executed between a firm quote made by a recommending securities firm referred to in the preceding article and a trading order meeting the price quoted, the price of the firm quote shall be the execution price.
If a recommending securities firm for its own account clicks on a trading order not meeting the price quoted, the execution price shall be the price clicked by the securities firm.
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Article 11-1 |
If during the trading hours for a given business day the TPEx finds that the weighted average trading price for an Emerging Stock in the Click System is 50 percent or more above or below the weighted average trading price of the preceding business day, it shall halt trading of the Emerging Stock until the close of trading hours for the given business day. However, these provisions shall not apply under any of the following circumstances:
- From the next business day following the TPEx’s public announcement of the termination of TPEx trading of the Emerging Stock.
- The given business day is the commencement date of ex-dividend or ex-rights trading of the Emerging Stock.
- The given business day is the date on which trading for the Emerging Stock will resume after a capital reduction.
- The given business day is one of the first five business days on which the Emerging Stock begins to be traded on the TPEx.
- The weighted average trading price of the Emerging Stock of the preceding business day is below NT$1.
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Article 12 |
Once a recommending securities firm enters a trading quote or clicks on the "trade" link on the Click System, or once a securities broker enters a customer's trading order information, the TPEx will disclose the following information to the public through its information transmission system:
- The highest buy and lowest sell quotes of and the volumes quoted by the recommending securities firm, and its name and contact phone number;
- The trading price and volume of the latest trade of the current session, the aggregate trading volume, and the weighted average trading prices; and
The TPEx's information transmission system provides an additional real-time search function for the trade price quotation information of all recommending securities firms, their names, and contact telephone numbers.
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Article 13 |
After the close of daily trading hours, the TPEx shall prepare and disclose a statement displaying the names, trading volumes that day, and highest, lowest, final, and weighted average trading prices of Emerging Stocks.
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Article 14 |
Where an error occurs in a buy or sell price quotation or execution of a trade via the Click System by a recommending securities firm, or in trade reporting by a securities dealer, or in execution of a trading order for Emerging Stock by a securities broker, the party concerned may, upon consent of the other party after the trade is executed, report to the TPEx for correction of the error or cancellation of the trade ("account change") by 3:30 p.m. of the same day; provided, however, that if a securities firm is unable to complete delivery, on the second business day after the trade date, of Emerging Stock that it sells for its own account or for the account of a customer, it may, upon consent of the other party, report cancellation of the trade to the TPEx by 10 a.m. on the second business day after the trade date.
An account change under the preceding paragraph shall be applied for in writing by the two trading securities firms in the format prescribed by the TPEx.
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