| Article 62 |
A securities broker may accept brokerage trading orders in the following manners:
1. Orders placed face-to-face;
2. Orders placed by telephone, letter, telegram, or another method agreed to by the GTSM;
3. Orders placed by electronic trading methods such as voice mail, the Internet, dedicated line, or closed private network.
A securities broker may not use computer-set groups in handling securities brokerage trading, and shall comply with the following provisions in brokerage trading:
1. In the case of face-to-face orders, the customer, agent, or the authorized representative shall fill in and sign/seal the order ticket.
2. In the case of orders placed by telephone, letter, telegraph, or another method agreed to by the GTSM, the associated person of the securities firm who takes the trading order shall prepare the order ticket in writing or electronically and print a record of the order, and comply with paragraphs 2 and 3 of Article 45-1 and paragraph 3 of this Article; except in the case of orders placed by telephone, the letter, telegram, or applicable documents shall be attached with the order ticket. Where the securities broker completes the order electronically, if hierarchical delegation of responsibility for brokerage trading can be implemented and the brokerage trading personnel by whom an order was processed can be confirmed, it is not necessary to print the orders one by one; however, records of the trading orders shall be printed in chronological order, and upon closing of the market, the processing person shall sign the records.
3. In the case of orders placed by electronic trading methods such as voice mail, the Internet, dedicated line, or closed private network, the securities broker need not prepare and complete the order ticket; provided that it shall print records of the orders in the sequence that they were received, and upon the closing of the market, the processing person and the department chief shall sign the records. The order records shall contain the name or account number of the principal, the time the order was placed, the type of securities, number of shares or par value, quoted price, period of validity, name or number of the associated person, and the order method. Records of orders placed through the Internet shall contain the IP (Internet Protocol) address and electronic signature. Where an order is placed through voice-mail, the caller's telephone number shall be recorded in conjunction with the caller-end number display function offered by a telecommunications institute.
If the principal placing an order referred to in the preceding paragraph makes payment/settlement through book-entry transfer and signs a letter of consent, and the order is not placed face-to-face, the signature/seal on the order ticket may be exempted; provided that the securities firm shall promptly notify the principal of trade-related information after the trade and keep a confirmation record.
Order tickets referred to in paragraph 2 above shall be serially numbered in accordance with the sequence in which the orders are placed. The form and particulars to be stated shall be in accordance with relevant rules of the Competent Authority. The order tickets of executed trades shall be kept with other business vouchers. The order tickets of unexecuted trades shall be affixed with a stamp indicating the unexecuted trade and destroyed after a week if no dispute is raised. The records of trading orders printed for trades made via electronic trading methods such as voice mail, the Internet, dedicated line, or closed private network, or printed for orders completed by a securities broker electronically, and order records in the form of computer files, shall be safekept for at least five years if there are not disputes, and in case of disputes, such records shall be safekept until the dispute has been resolved. Where orders are completed electronically and are not printed out one by one, they shall be stored using an electronic medium that cannot be altered or deleted.
The securities broker shall record orders placed by telephone, and safekeep the telephone recordings at its place of business.
The telephone recordings referred to in the preceding paragraph shall be preserved for a period of at least two months by the securities broker. In case of disputes, such recordings shall be safekept until the dispute has been resolved. In case the recording equipment malfunctions and there is negligence in operational procedures, within two days counting inclusively from the occurrence of the event, the securities broker shall report to the GTSM the cause, factual circumstances, and condition for improvement.
Telephone recordings referred to in the preceding paragraph shall be regarded as a type of trading voucher. In case the securities firm avoids or refuses inspection, processing shall be made in accordance with paragraph 3 of Article 24 and the provision of "Handling Procedures for Inspection of Securities Firms and the Tracing and Review of Delinquencies and the Offering of Assistance Thereto".
When a securities broker accepts trading orders made by non-electronic methods such as by telephone, in writing, or by telegraph, and uses an electronic method to fill out the order ticket, or accepts trading orders made by electronic trading methods such as voice mail, the Internet, dedicated line, or closed private network, it need not print out trading order records if its trading order record storage operations comply with the following provisions:
(1) Records are kept using a non-revisable, non-erasable electronic storage medium, and are completed on the same day the trade is executed.
(2) Comprehensive indexing and management procedures are instituted.
(3) Dedicated personnel are placed in charge of administering the records, and the electronic data files can be converted to printed format at any time. |