| Article 1 |
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| Article 2 |
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| Article 3 |
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| Article 4 |
After the close of daily trading hours, the GTSM will promptly analyze securities trading on the automated trade matching system and electronic bond trading system. Upon discovery of any of the following circumstances, the GTSM will announce related trading information (such as the degree of price fluctuation, trading volume, turnover rate, degree of concentration, price-to-earnings ratio, price-to-book ratio, long/short ratio, and premium/discount percentage):
1.An irregularity in the cumulative percentage of increase or decrease in the last transaction price during the most recent period.
2.An irregularity in the percentage of increase or decrease in the last transaction price between the initial and final business days of the most recent period.
3.An irregularity in the cumulative percentage of increase or decrease in the last transaction price during the most recent period, combined with an unusually large increase in the intraday trading volume relative to the daily average in the most recent period.
4.An irregularity in the cumulative percentage of increase or decrease in the last transaction price during the most recent period, combined with an unusually high intraday turnover rate.
5.An irregularity in the cumulative percentage of increase or decrease in the last transaction price during the most recent period, combined with an unusually high percentage of confirmed purchases or sales of the given security at a securities firm on a given day over the total intraday trading volume for the given security.
6.A significant increase in the daily trading volume for a given day or several recent days relative to the daily average trading volume for the most recent period.
7.A significantly high cumulative turnover rate for the most recent period.
8.An unusually high price-to-earnings ratio, price-to-book ratio, or intraday turnover rate, combined with any of the following three circumstances: a high price-to-book ratio of stock in relation to other stocks of the given industry; the monetary amount of confirmed purchases or sales through a given securities firm on a given day accounts for an unusually high proportion of the total monetary amount of all confirmed trading orders for the given security on that day; the monetary amount of confirmed trading orders for the account of a single investor on a given day accounts for an unusually high proportion of the total monetary amount of all confirmed orders for the given security on that day.
9.An irregularity in the cumulative percentage of increase or decrease in the last transaction price during the most recent period, combined with a significant increase in the short to long margin ratio for the preceding period.
10.An irregularity with respect to the premium/discount percentage calculated from the final transaction price of Taiwan depositary receipts or the final transaction price of the stocks the depositary receipts represent on the exchange market of their home country.
11.Other trading irregularities as determined by resolution of the Surveillance Operations Oversight Committee.
If there is no last transaction price for a security on a given day for use in calculating the irregularity standards under the preceding paragraph, the reference price determined pursuant to Article 57 of the GreTai Securities Market Rules Governing Securities Trading on Over-the-Counter Markets shall be used instead.
The provisions of the preceding paragraph regarding trading volumes of all or the same type of securities shall not apply to the stock of an issuer with paid-in capital of less than NT$80 million.
Exchange-traded fund beneficial certificates and their underlying securities, government bonds, ordinary corporate bonds, and foreign straight corporate bonds are not subject to the standards set forth in the subparagraphs of paragraph 1.
If underlying securities or underlying indices are included as factors used in the formula for calculating the price fluctuation limits of a security, the provisions of Article 2, paragraph 4 apply mutatis mutandis to the calculation of the difference in the cumulative percentage of increase or decrease over a period of time.
If the trading unit of a security comprises less than 1,000 units (shares, beneficial interest units, or depositary receipt units), the provisions of Article 2, paragraph 6 apply mutatis mutandis to the numerical standard of trading units for its trading (order) volume.
The GTSM shall separately adopt detailed numerical standards for the irregularities listed under each of the subparagraphs of paragraph 1, and for any exceptions to those conditions. |
| Article 5 |
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| Article 6 |
If any of the following circumstances occurs in the trading of securities, the GTSM shall immediately announce disposition measures with respect to the securities:
1.The GTSM announces trading information for a particular security pursuant to Article 4, paragraph 1, subparagraph 1 hereof for 3 consecutive business days.
2.Where the GTSM has announced trading information for a particular security pursuant to any subparagraph of Article 4, paragraph 1 hereof for a period of 5 consecutive business days, or for any 6 business days within the most recent 10 business day period, or for any 12 business days within the most recent 30 business day period.
If disposition measures under the preceding paragraph have been announced for a particular security for the first time within the most recent 30 business days, the GTSM will simultaneously adopt the following measures within 10 business days from the next business day after the occurrence:
1.Conducting trade matching for the securities with manually controlled trade matching terminals (matching once approximately every 5 minutes; but for securities placed under an altered trading method, matching once approximately every 10 minutes; for securities under the periodic trading method, matching once approximately every 45 minutes; and for managed stocks, matching once approximately every 60 minutes).
2.Notifying securities brokers that when an investor's daily volume of consigned trades for the security during the given period consists of a single trade of 10 trading units or more or multiple trades with an aggregate total of 30 trading units or more, they shall collect from the investor the full amount of the buy-side price or sell-side securities for trading orders already placed by the investor that day, and, in the case of margin trading, the full amount of margin for margin purchase or for short sale. For further trading orders in excess of the aforementioned amounts on the same day, they shall collect upon placement of order the full amount of the buy-side price or sell-side securities, and, in the case of margin trading, the full amount of margin for margin purchase or for short sale. However, this shall not apply to liquidation of margin trades or to orders to trade the security through a default account. In the case of the stock of an issuer with paid-in capital of less than NT$80 million, the GTSM will notify securities brokers that when an investor carries out daily trades for the security during the given period, they shall collect in full from the investor the buy-side price or sell-side securities for consigned orders already placed by the investor that day.
When disposition measures under the preceding paragraph have been announced for a particular security within the most recent 30 business days, then upon a second announcement of disposition measures pursuant to the same standards on a given day, the GTSM will simultaneously adopt the following measures within 10 business days from the next business day after the occurrence:
1.Conducting trade matching for the securities with manually controlled trade matching terminals (matching once approximately every 20 minutes; but for securities placed under an altered trading method, matching once approximately every 25 minutes; for securities under the periodic trading method, matching once approximately every 60 minutes; and for managed stocks, matching once approximately every 90 minutes).
2.Notifying securities brokers that for all trading orders placed for the security by all investors on any given day during the given period, they shall collect in full from the investors the buy-side price or sell-side securities for trading orders already placed by the investors that day, and, in the case of margin trading, the full amount of margin for margin purchase or for short sale. However, this shall not apply to liquidation of margin trades or to orders to trade the security through a default account. In the case of the stock of an issuer with a paid-in capital of less than NT$80 million, the GTSM will notify securities brokers that when an investor carries out daily trades for the security during the given period, they shall collect in full from the investor the buy-side price or sell-side securities for orders already placed by the investor that day.
When disposition measures are announced for a particular security pursuant to paragraph 2 or 3 herein and reasons for announcement include circumstances under Article 4, paragraph 1, subparagraph 8, or the GTSM further announces trading information pursuant to the aforementioned subparagraph 8 during the period of the disposition measures, or when the GTSM deems that there is a securities trading irregularity with the likelihood of a significant impact on the security of payments and settlements in the market, or otherwise as the GTSM deems necessary, after reporting to the Surveillance Operations Oversight Committee for deliberation and resolution, it may adopt the following disposition measures and prescribe the effective period of the disposition measures:
1.The disposition measures under paragraphs 2 or 3 of this Article, which may be adjusted when necessary based on the following considerations:
A.The time at which trade matching is done using manually controlled trade matching terminals.
B.Whether, when the investor placed the order for the security involved in the irregular trading, there was advance collection of all or a specific proportion of the buy-side price, sell-side securities, margin, or short margin.
C.The effective period of the disposition measures.
2.Amounts of reported intraday sales or purchases of the given security may not exceed NT$40 million by the head office of any securities firm or NT$10 million by a branch office of any securities firm, provided that this shall not apply to liquidation of margin trades or to orders to trade the security through a default account; the amounts of intraday trading reports of sales or purchases of the stock of an issuer with paid-in capital of less than NT$80 million shall be reduced by half, and when necessary, the amounts of reported daily sales or purchases of the given security at the head offices and branch offices of securities firms may be adjusted based on the current trading in that security, its market value, or the capitalization of the issuing company.
3.When notifying securities firms of irregular trading in a security that is being traded abnormally, notify the securities firms to make additional deposits to the clearing and settlement fund.
4.Temporarily suspend margin purchase and short sale transactions in the given security. However, this shall not apply to liquidation of margin trades.
5.After reporting and obtaining the permission of the competent authority, suspend the trading of the given security for a certain period of time.
6.Any other necessary disposition measures.
Disposition measures under subparagraph 2 of the preceding paragraph may also be adopted pursuant to a resolution of the management committee of the GTSM Joint Responsibility System Clearing and Settlement Fund, which may also prescribe the period of the disposition measures.
When disposition measures are adopted with respect to trading in a given security by resolution of the Surveillance Operations Oversight Committee or the management committee of the GTSM Joint Responsibility System Clearing and Settlement Fund, the number of days on which trading information is announced prior to implementation of the measures or during the effective period of the disposition measures need not be counted in the calculation of number of days under paragraph 1 of this Article.
When there is a trading order for a given security through a securities broker's omnibus trading account during any period of disposition measures under paragraphs 2 through 4, the disposition measures under those paragraphs apply, and the securities firm shall collect from each representative (or mandatary) the full amount of the buy-side price or sell-side securities, or a specific percentage thereof, for any principal whose transaction reaches one of the thresholds set out in those paragraphs.
When disposition measures have been announced for the underlying securities of a convertible (or exchangeable) corporate bond by the GTSM or the Taiwan Stock Exchange Corporation, the GTSM may concurrently adopt disposition measures with respect to the convertible (or exchangeable) corporate bond.
If the trading unit of a security comprises less than 1000 units (shares, beneficial interest units, or depositary receipt units), the provisions of Article 2, paragraph 6 apply mutatis mutandis to the numerical standard of trading units for its trading (order) volume. |
| Article 7 |
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| Article 8 |
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| Article 9 |
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