| Article 21 |
Where any of the following circumstances applies to the issuer of the Underlying Securities in a Single Stock Futures Contract, the TAIFEX shall adjust the terms and conditions of the contract and publicly announce the adjusted contract content prior to the effective date of the adjustment:
1.Distribution of cash dividends.
2.Conversion of capital reserves or earnings into capital.
3.Cash capital increase. However, this shall not apply if the shareholders do not have preemptive rights to subscribe common shares.
4.Becoming a company that is extinguished following a corporate merger.
5.Capital reduction. However, this shall not apply to cancellation of shares upon share repurchase or upon a shareholder's waiver of shares in accordance with regulations.
6.Conversion of shares to those of a subsidiary of another company.
7.Any other event causing a change to the name, type, or quantity of shares held by shareholders, or distribution of other benefits to shareholders. |
| Article 22 |
The effective date of Single Stock Futures Contract adjustment shall be the second business day prior to the book closure date of the Underlying Securities. However, this shall not apply in any of the following circumstances:
1.In the case of a statutory consolidation or a conversion of shares into a newly established company, the effective date of Contract adjustment shall be the record date of the merger or the record date of the share conversion.
2.In the case of a capital reduction to cover losses, or a capital reduction by returning share capital in cash only, the effective date of Contract adjustment shall be the date when the trading of the Underlying Securities is resumed.
On a case-by-case basis, the TAIFEX may otherwise set the date of Contract adjustment referred to in the preceding paragraph.
A trader shall handle all trading and liquidation operations in compliance with the content of the post-adjustment Single Stock Futures Contract, both for positions in the futures contract already held prior to the effective date of contract adjustment and those opened thereafter. |
| Article 23 |
After a Single Stock Futures Contract is adjusted, the ticker symbol shall be changed. |
| Article 24 |
When the issuer of the Underlying Securities makes a cash dividend distribution, adjustment of the Single Stock Futures Contract pursuant to Article 21, subparagraph 1 shall be carried out as follows:
1.For buy-side and sell-side positions held in Single Stock Futures Contracts at market close on the business day preceding the effective date of contract adjustment (i.e., the ex-dividend date of the Underlying Securities), the addition to the buy-side equity amount and the deduction from the sell-side equity amount shall be adjusted on the effective date of contract adjustment by the equivalent of the cash dividend amount received on 2000 shares of the Underlying Securities, with amounts of less than NT$1.00 unconditionally rounded down. The adjustments shall be carried out in accordance with the Taiwan Futures Exchange Corporation Operation Directions for Clearing and Settlement Operations by Futures Commission Merchants and Clearing Members.
2.The Underlying Securities of the post-adjustment contract are the ex-dividend securities, exclusive of cash dividend distribution received.
Public announcement of the amount of the adjustment made pursuant to the preceding paragraph shall be made together with the public announcement for Article 21, subparagraph 1.
Where contract adjustment is made in any circumstance under subparagraphs 2 and 3 of Article 21, the Underlying Assets shall be adjusted to the total of the following items:
1.2,000 shares of the ex-rights Underlying Securities.
2.Gratis capitalization issue or certificates of entitlement to new shares, allocated to 2,000 shares of the Underlying Securities.
3.Fair value of preemptive rights to participate in cash capital increase granted to 2,000 shares of the Underlying Securities, rounded down to the New Taiwan Dollar.
The "fair value of preemptive rights to participate in cash capital increase" of subparagraph 3 of the preceding paragraph is computed as follows:
1.The difference between the closing price of the Underlying Securities on the deadline for payment [for shares] and the subscription price of the cash capital increase, multiplied by the number of shares that may be subscribed with the preemptive rights to participate in the cash capital increase granted to 2,000 shares of the Underlying Securities. Provided, where the closing price of the Underlying Securities on the deadline for payment is lower than the subscription price of the cash capital increase, computation is excluded.
2.Where the deadline for payment under the preceding subparagraph is later than the final settlement date, the difference between the closing price of the Underlying Securities on the final settlement date and the subscription price of the cash capital increase, multiplied by the number of shares that may be subscribed with the preemptive rights to participate in the cash capital increase granted to 2,000 shares of the Underlying Securities. Provided, where the closing price of the Underlying Securities on the final settlement date is lower than subscription price of the cash capital increase, computation is excluded. |
| Article 25 |
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| Article 26 |
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| Article 27 |
The TAIFEX may execute contract adjustments under Article 21, subparagraph 7 on a case-by-case basis. |
| Article 28 |
Where during its duration an adjusted contract is subject to further adjustment under Article 21, the Underlying Securities of the Underlying Assets shall be adjusted pursuant to the relevant provisions of Articles 24 through 27, and the figure of 2,000 shares referred to in Articles 24 through 26 shall be calculated as the number of shares of the Underlying Securities subsequent to the prior adjustment of the contract. |
| Article 29 |
The TAIFEX will add no new contract months for the pre-adjustment version of a contract that has been adjusted; any contract month of such a contract that has no open positions after close of market on any business day will be delisted from the next business day. |
| Article 30 |
On the effective date of a contract adjustment under Article 21, the TAIFEX may add listings of new contract months, for 2,000 shares of the Underlying Securities.
Article 15, paragraph 1 shall apply mutatis mutandis to the additional listing of new contract months under the preceding paragraph. |
| Article 31 |
Upon adjustment of a Single Stock Futures Contract in any circumstances under Article 21, the position limit shall be computed by inclusion of all types of futures with the same Underlying Securities held by the trader; if there is any adjustment in the number of Underlying Securities, it shall also be based upon the total number of shares of the Underlying Assets.
Adjustment contents and reversion dates for position limits under the preceding paragraph shall be publicly announced by the TAIFEX. |