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Title	Taipei Exchange Rules Governing Management of Foreign Currency Denominated International Bonds CH
Date	2025.06.04 ( Amended )

Article Content

Article 1
Article 2
Article 2-1
Article 2-2

Article 3
Article 3-1
Article 4
Article 4-1
Article 5
Article 5-1
Article 5-2
Article 6
Article 6-1
Article 6-2
Article 7
Article 7-1
Article 8
Article 9
Article 10
Article 11

Article 12
Article 13
Article 14
Article 14-1
Article 15
Article 16
Article 16-1
Article 17

Article 18
Article 19
Article 20
Article 21
Article 22	International bond transactions are without exception ex-dividend transactions. Interest receivable by the seller on the performance and settlement date shall be paid to the seller by the buyer together with the transaction price. Interest receivable pursuant to the preceding paragraph shall be calculated from the interest accrual date to the performance and settlement date, inclusive of the first day but exclusive of the last. For outright transactions, interest shall be calculated by the method specified in the prospectus for the international bond in question. A buyer who purchases an international bond through the IBTS on the second business day prior to the record date of interest payment or later is not entitled to receipt of current-period interest. The third business day prior to an international bond's record date of redemption payment at maturity is the last trading day on which transactions in that international bond may take place through the IBTS. Where an international bond is traded through price negotiation over the counter, the record date of interest and redemption payments is the last trading day for that international bond. For international bonds that are Sukuk, the periodic income distribution shall be subject mutatis mutandis to the provisions of the preceding 3 paragraphs with respect to interest.
Article 23	When a securities firm uses the IBTS to make quotes, it shall enter information in each field shown on the IBTS screen, and after acceptance by the IBTS, it will be confirmed in sequence via a transmission system. The same shall be true for any revised quote. At 1:40 pm each day, the TPEx will calculate the current-day net long position in international bonds taken by each securities firm through the IBTS, and issue through the IBTS a repo ask quote for a certain percentage of each such position under conditions of anonymity, a zero interest rate, and a duration of 1 business day. Notwithstanding the foregoing, a securities firm may revise the quoted interest rate; where it has already sold bonds of that maturity through price negotiation over the counter, or as needed for performance of obligations, it may also revise or cancel the quote by 2 pm by providing relevant documentation. Once trading quotes entered as described in paragraphs 1 and 2 are executed through the EBTS, the execution details will be confirmed in sequence via a transmission system. The TPEx may, via the Internet and through a market information service, publicly disclose the six best bid and ask quotes on the IBTS and the name of the entity providing each such quote, together with the prevailing execution prices. Provided, however, that where a securities firm provides quotes anonymously, the TPEx will only disclose the price information. A market information service as referred to in the preceding paragraph shall duly enter into a Contract for Supply and Use of Trading Information with the TPEx. When a securities firm, between 9:00 am and 3:00 pm, conducts an outright transaction of an international bond over the counter, then within 60 minutes after the transaction is executed, the securities firm shall enter the transaction information into the TPEx information system in the format prescribed by the TPEx. If the transaction is conducted between 3:00 pm and 9:00 am of the next business day, the transaction information shall be reported by 10:00 am of the next business day. When trading the international bonds of Article 3, subparagraph 7, an offshore banking unit or an offshore securities unit shall enter transaction information into the TPEx information system, in accordance with the TPEx's prescribed time frame and format, immediately after the confirmation of a transaction, and apply mutatis mutandis the provisions of the preceding paragraph regarding the reporting of transaction information.
Article 24
Article 24-1	Except when issuing the bonds referred to in Article 3, subparagraph 7, an issuer shall designate liquidity providers, to provide trading quotes during the period of TPEx trading of its international bonds. The term "liquidity provider" in the preceding paragraph means a securities dealer or a bank that does not concurrently operate as a securities dealer. Operation directions related to such liquidity providers will be separately prescribed by the TPEx.
Article 25	Where a securities firm conducts outright transactions through the IBTS, each quote shall first be identified as either a firm quote or a reference quote and be executed as follows: When a firm quote is provided, the trade will be executed upon its confirmation by another securities firm. When a reference quote is provided, upon confirmation by another securities firm, the securities firm providing the quote may respond within twenty seconds by answering whether or not to execute the trade. When the securities firm that provided the quote confirms execution, the trade will be promptly executed; when it confirms non-execution of the trade, or fails to respond within 20 seconds, the trade will be deemed to have not been executed, and the IBTS will automatically cancel the quote. The other securities firm, however, may cancel its confirmation at any time before the securities firm that provided the quote has responded regarding execution. A securities firm using the IBTS may seek a quote from another securities firm. The quote provided in response by the other securities firm is a firm quote, and will be executed as follows: When the securities firm that sought the quote confirms execution of the trade at the price quoted by the other securities firm within 20 seconds, the trade will be promptly executed. The securities firm that received the quote request may cancel its own quote at any time before the securities firm that sought the quote confirms execution of the trade. Any quote provided by a securities firm through the IBTS for a repo transaction or for any transaction set out in Article 23, paragraph 2 is a firm quote and will be promptly executed upon its confirmation by another securities firm. Notwithstanding the foregoing, trades cannot be executed under any of the following circumstances: When the cumulative outstanding balance of repo transactions at a given maturity exceeds one-half of that bond issue's outstanding balance, the IBTS will suspend confirmation and execution of trading quotes by securities firms for the bonds of that maturity. When the cumulative outstanding balance of reverse repo transactions at a given maturity by a single securities firm exceeds one-tenth of that bond issue's outstanding balance, the IBTS will suspend confirmation and execution of trading quotes by securities firms for the bonds of that maturity. A securities firm that has posted an ask quote for a repo transaction to the IBTS after 2 pm may neither place a bid quote for a repo transaction involving a bond of the same maturity, nor may it confirm execution of any repo transaction with another securities firm that has placed an ask quote for bond of that maturity. The system will execute each trade one trading unit at a time.
Article 26	When, for a securities firm participating through the IBTS, an error occurs in a bid or ask quote and a trade is executed pursuant to Article 25, then upon consent of the counterparty, the securities firm may report a correction of the error or cancellation of the transaction (below, "account change") to the TPEx by 4 pm that day. For any account change made pursuant to the preceding paragraph, both parties shall provide substantiating written documentation.
Article 27	The reference price for outright transactions on the first business day for an international bond shall be on a price-per-hundred basis. Each business day's reference price for an international bond shall be calculated as follows: As the IBTS weighted average price-per-hundred for the preceding business day. When there is no record of trades for the previous business day, as the per-hundred reference price for the most recent previous business day. The TPEx shall on a daily basis calculate and publicly announce the per-hundred reference price.

Section 3 Performance and Settlement

Article 28	When an international bond trade is executed over the counter, then except where these Regulations provide otherwise, a trade confirmation statement, delivery statement, and performance and settlement statement shall be produced at the time of the transaction, and after transfer to the customer for signing, payment and delivery shall be completed directly with the customer by the third business day following the transaction date. In addition, where the securities firm has already furnished the TPEx with a "Consent Form for Book-entry Transfer of International Bonds" (Appendix 4), it shall process the customer's payment and delivery in accordance with the TPEx's publicly announced book-entry settlement procedures when an over-the-counter trade in an international bond meets either of the following criteria: The transaction is an outright transaction in which the securities dealer is the buyer and the customer is the seller. The dollar amount of the transaction is not greater than five times the minimum trading unit for privately negotiated over-the-counter transactions in international bonds. The provisions of the preceding paragraph notwithstanding, where the securities firm applies to and receives approval from the TPEx on a case-by-case basis, it may be allowed until the seventh business day following the transaction date to complete payment and delivery. Where an international bond is registered with a foreign securities depository, a securities firm that engages in an over-the-counter transaction in that international bond with an overseas customer may apply to a domestic central securities depository to carry out a cross-border wire transfer to complete delivery of the bonds with the overseas customer. When a securities firm conducts a transaction with an offshore qualified institutional investor, it may observe international market conventions for payment and settlement and retaining the transaction and payment and settlement records. When a securities firm conducts a negotiated trade of international bonds over the counter, if the customer has already signed a Consent Form and a record of the payment is retained, the trade confirmation statement, delivery statement, and performance and settlement statement for the trade shall, by the deadline set out in paragraph 1, be delivered to the customer’s designated address or sent by email. The documents are not required to be signed by the customer, but a record of the delivery or email transmission shall be retained. If the trade confirmation statement, delivery statement, and performance and settlement statement are to be sent by email, the customer’s written consent shall be obtained, and appropriate measures shall be taken to ensure the correct and secure delivery of the materials.
Article 29	A securities firm participating in trading of international bonds through the IBTS shall establish a dedicated bond clearing account for international bonds and a dedicated funds settlement account for international bonds at, respectively, a TPEx-designated domestic centralized securities depository enterprise and a TPEx-designated foreign currency clearing bank. These accounts shall be reported to the TPEx prior to the beginning of trading; any subsequent change in the accounts shall also be reported.
Article 30	The IBTS performance and settlement date is the third business day after the transaction date. On the performance and settlement date, a securities firm participating through the IBTS shall carry out performance and settlement with the TPEx of the net amount, after offsetting of the payable and receivable amounts for the bonds and transaction prices shown in the Performance and Settlement Statement prepared by the TPEx for each currency, in accordance with the following provisions: When there are net funds payable, the securities firm shall directly deposit such amount into the TPEx funds settlement account for international bonds by 1:30 pm on the performance and settlement date. When there are net bonds deliverable, the securities firm shall perform the bond transaction in accordance with a domestic centralized securities depository enterprise's rules by 1:30 pm on the performance and settlement date. When there are net funds receivable, after verification by the TPEx pursuant to subparagraph 2, the TPEx will directly deposit the amount to the securities firm's funds settlement account at 1:30 pm or later on the performance and settlement date. When there are net bonds receivable, after verification by the TPEx pursuant to subparagraphs 1 and 2, the TPEx will at 1:30 pm or later on the performance and settlement date notify the domestic securities depository enterprise to make a book-entry transfer. When a securities firm's branch units trade bonds through the IBTS, the head office shall first aggregate their trades and proceed as in the preceding paragraph.
Article 31	When a securities firm participating in trading of international bonds through the IBTS is incapable of carrying out performance and settlement, it is in default, and the TPEx may temporarily suspend its participation in trading through the IBTS.
Article 32	When a securities firm participating through the IBTS defaults and does not have sufficient funds for performance and settlement that has come due, the TPEx may take the following measures with respect to the original bond purchase: Disposing of the bonds obtained by the securities firm in the original purchase. Contacting another securities firm to carry out a repo transaction, then taking the measures under the preceding subparagraph. Contacting another financial institution to loan funds, then taking the measures under subparagraph 1.
Article 33	When a securities firm participating through the IBTS defaults and does not have sufficient bonds for transaction performance and settlement that has come due, the TPEx may take the following measures with respect to the proceeds obtained by the securities firm from the original sale, or with respect to other bonds purchased by the securities firm: Disposing of the proceeds obtained by the securities firm from the original sale. Contacting another securities firm to carry out a repo transaction, then taking the measures under the preceding subparagraph. Contacting another financial institution to arrange a loan of the bonds, then taking the measures under subparagraph 1. If the securities firm has purchased other types of bonds, they may be disposed of as given in the preceding article.
Article 34	A securities firm shall pay a monthly service fee for international bond business, calculated as follows: For bond transactions made through the IBTS, a maximum fee of 5/1,000,000 of aggregate transaction amounts for the month, and a minimum fee of 5/10,000,000 of total transaction amounts for the month. For over-the-counter bond transactions of a securities firm, the fee will be assessed at 5/10,000,000 of its total trading business volume for the month. The total transaction amounts and the total business volume referred to in the preceding paragraph shall be converted to New Taiwan Dollars based on the average of the mid-market exchange rates during the given month at TPEx-designated foreign exchange banks.

Chapter 4 Information Reporting

Article 35	The issuer of an international bond shall report the following information in Chinese or English on a regular basis, provided that this does not apply if the issuer or obligor falls under Article 4, subparagraph 3 or Article 4-1, paragraph 2, subparagraph 1: Any change in issuance data for the preceding month shall be entered into the TPEx-designated information reporting website within 10 days after the end of each month. Within 20 days after the completion or printing date of the annual report, an electronic file containing the annual report shall be transmitted to a TPEx-designated information reporting website; if the issuer is a branch of a foreign financial institution, or is a company controlled by another company, and has not prepared an annual report, it shall file the annual report of its head office or the other company. If a foreign issuer issues an international bond under Article 4-1 that furthermore is guaranteed by a financial institution, the issuer may replace its annual report with the annual report of the guarantor financial institution.
Article 36	The issuer of an international bond shall report the following information on a non-regular basis: Information for which prompt reporting is required by the laws and regulations of the issuer's home country or the place where its shares are traded; a branch of a foreign financial institution, or a company controlled by another company, shall additionally include information for which prompt reporting is required by the laws and regulations of the home country of its home office or another company, or of the place where the shares thereof are traded. The issuance, maturity, or repurchase of bonds, or the allotment of shares in accordance with regulations. Any change in the credit rating of the issuer or the bond. Information related to the liquidity providers. Any other matter having a material influence on the price or value of the bond.
Article 37	Upon the occurrence of any of the matters in the preceding article with respect to the issuer of an international bond, the issuer shall enter the information, in Chinese or English, into the TPEx-designated information reporting website prior to the beginning of trading hours on the next business day following the date of the event's occurrence. For the international bonds that are referred to in Article 3, subparagraph 7 or Article 4-1, a foreign issuer may provide a source of information in Chinese or English that is accessible through a single website hyperlink, and must provide a statement containing the following content: That the Taipei Exchange is not responsible for any of the content appearing in the public disclosure, and makes no statement regarding its accuracy or completeness; the content must further clearly indicate that the TPEx bears no liability for any loss incurred due to the content of the public disclosure as a whole or any of its parts, or due to any reliance on such content.
Article 38	A foreign issuer may engage an agent institution within the territory of the ROC to report the matters it is required to report on a regular or non-regular basis.
Article 39	Upon discovering that an issuer has failed to report material information of the kind referred to in Article 36 of these Rules, the TPEx may first make telephone inquiries with the issuer or its agent institution, and as it deems necessary, by means of a written form stating the source of the information and its content, request that the issuer or its agent institution enter an explanation of the given matter into the TPEx-designated information reporting website.
Article 40	When information reported by the issuer of an international bond is found to contain an inaccuracy, upon such a discovery or upon receipt of notification from the TPEx, the issuer shall promptly make correction by entering accurate information. The TPEx may, as it deems necessary, make inquiries with the issuer or request it to submit related information.

Chapter 5 Penal Provisions

Article 41	When any of the following circumstances applies to the issuer of an international bond, the TPEx may, in view of the circumstances, impose a default penalty of NT$30,000, or suspend it from trading and report to the competent authority for recordation: Violation of any provision of these Rules. Willful release of any unconfirmed information, or public disclosure of inaccurate information. If the issuer of an international bond violates a provision of the preceding paragraph and is required to make a supplementary disclosure, the TPEx shall issue a letter notifying the issuer to do so within 2 days from receipt of the letter, and should the issuer fail to do so within that period, the TPEx may impose a default penalty of NT$10,000 per day until the day on which the issuer effects disclosure. If a branch of a foreign financial institution, or a company controlled by another company, violates any provision in Chapter 4 of these Regulations, the TPEx may demand that its head office or another company either act in the issuer's stead, or lend the issuer its assistance, to file a disclosure.
Article 42	When a securities firm defaults through the IBTS, in addition to bearing the price differential and costs resulting from TPEx handling of the default pursuant to Article 32 or 33, the firm shall pay to the TPEx a default penalty of one percent of the shortfall in bonds or funds required for transaction performance and settlement.
Article 43	When the TPEx calculates that the bond transaction performance and settlement reserve deposited by a securities firm that has defaulted through the IBTS is insufficient to pay the price differential and costs resulting from TPEx handling of the default pursuant to Article 32 or 33, and when the defaulting securities firm fails to make up that shortfall on the same day in accordance with a notice from the TPEx, the TPEx may, with respect to the shortfall in bonds or funds required for transaction performance and settlement, make a distribution among the securities firm's trading counterparties based on their relative percentages as shown in the records of the original transactions, and offset that portion of the bonds or funds through cash settlement. The defaulting securities firm shall pay the trading counterparties a compensatory sum of one percent of the shortfall in the bonds or funds. The cash settlement price referred to in the preceding paragraph shall be calculated from the next day's per-hundred reference price for bonds of that maturity. If the per-hundred reference price thus calculated is obviously unreasonable, however, the TPEx will determine the price.
Article 44	For a securities firm that defaults through the IBTS, the TPEx may use or dispose of the performance and settlement reserve deposited by the defaulting securities firm and the interest accrued thereon to pay the default penalty and the price differential and costs that result from the TPEx's handling of the default pursuant to Article 32, 33, and 42. In handling a default, the TPEx may designate a securities firm to assist in carrying out performance and settlement operations in accordance with the Contract for Securities Firm Participation in the Trading System for International Bonds. The defaulting securities firm may not reject or raise objection to the price for and manner in which the TPEx coordinates handling of the relevant money or bonds.
Article 45	When a securities firm reports an account change pursuant to Article 26, except where there is a legitimate reason that is recognized by the TPEx, the TPEx may take the following measures pursuant to applicable regulations: When any of following circumstances applies to the securities firm, the TPEx may notify it to make correction within a prescribed period: It reports two or more account changes on a given day. It reports four or more account changes in a given month. There are three or more instances in which it reports account changes in a given month. When any of following circumstances applies to the securities firm, the TPEx may issue a warning: It reports three or more account changes on a given day. It reports six or more account changes in a given month. There are four or more instances in which it reports account changes in a given month. It fails to make correction within the prescribed period under the preceding subparagraph. When any of following circumstances applies to the securities firm, in addition to notifying it to issue a warning to the negligent personnel managers, the TPEx may impose a default penalty of not less than NT$50,000 but not more than NT$200,000: It reports five or more account changes on a given day. It reports eight or more account changes in a given month. There are six or more instances in which it reports account changes in a given month. The TPEx has issued a warning pursuant to the preceding subparagraph two or more times during the preceding half year. When any of following circumstances applies to the securities firm, the TPEx may handle the matter by mutatis mutandis application of Article 96 of the TPEx Trading Rules: A default penalty has been imposed on the securities firm under the preceding paragraph three times or more within the last half year. The securities firm fails to pay the default penalty under the preceding paragraph. If the securities firm makes any false statement when reporting an account change, the TPEx may handle the matter under Article 97 of the TPEx Trading Rules.
Article 46	When a securities firm trading international bonds through the IBTS violates any provision of these Rules, the TPEx may additionally penalize the violation in accordance with the TPEx Trading Rules.

Chapter 6 Supplementary Provisions

Article 47

These Rules, and any amendments hereto, shall enter into force after they have been passed by the TPEx board of directors and submitted to the competent authority for approval and/or recordation. Any addition, deletion, or amendment to the appendices of these Rules shall take force after approval by the president of the TPEx.