| Article 1 |
These Directions are adopted pursuant to Articles 92 to 92-3 of the Taipei Exchange (TPEx) Rules Governing Securities Trading on the TPEx.
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| Article 2 |
When the TPEx discovers any of the following circumstances during its daily analysis of the trading of an Emerging Stock through the Emerging Stock Computerized Price Negotiation and Click System, it will take measures pursuant to the provisions of Article 3:
- When the amplitude of change in the weighted average trading price exceeds 20 percent during the trading hours of the current day.
- When the cumulative percentage of increase or decrease in the final weighted average trading prices for the most recent 5 business days (including the current day) exceeds 50 percent.
- When, for a stock with a weighted average trading price reaching NT$200 or more for the current day, the cumulative percentage of increase or decrease in the final weighted average trading prices for the most recent 5 business days (including the current day) exceeds 30 percent.
- When the percentage of increase or decrease in the final weighted average trading prices between the initial and final days of the most recent period of 30 business days (including the current day) exceeds 100 percent.
Exceptions to the preceding paragraph shall be as follows:
- The direction of movement of the final weighted average trading price for the current day is opposite that of the increase or decrease calculated under the respective standard of subparagraph 2, 3, or 4 of the preceding paragraph.
- The final weighted average trading price of the stock is less than NT$10 on the current day.
- The standard under any of subparagraph 2, 3, or 4 of the preceding paragraph is met, but non-trade-related factors (such as ex-rights or ex-dividend factors) have caused the fluctuations in the price of the stock.
- The standard under subparagraph 4 of the preceding paragraph is met, but the TPEx has announced the name of the stock and the trading information that should be paid attention to pursuant to subparagraph 2 or 3 of the preceding paragraph during the most recent 30 business days (including the current day), and also the cumulative percentage of increase or decrease in its final weighted average trading prices for the most recent 5 business days (including the current day) does not exceed 30 percent.
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| Article 3 |
When any of the circumstances under Article 2 occurs in the trading of an Emerging Stock, the TPEx, in order to bring it to the attention of the investors, will immediately announce the name of the stock and the trading information that should be paid attention to. It furthermore will issue written notice after market close to the internal auditing officer or operations department officer of the recommending securities firm for the given stock to bring their attention to the quoted price, with a copy to the general manager of its head office.
When the circumstance set out in paragraph 1, subparagraph 1 of the preceding Article occurs in the trading of an Emerging Stock, the TPEx shall inform the persons referred to in the preceding paragraph by telephone during the trading hours to bring their attention to the quoted price.
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| Article 4 |
When any of the following circumstances occurs with respect to the trading of an Emerging Stock, the TPEx will immediately announce that the stock is under disposition measures:
- Where the TPEx has announced trading information for the stock pursuant to Article 2, paragraph 1, subparagraph 2 or 3 for 3 consecutive business days.
- Where the TPEx has announced trading information for the stock pursuant to any provisions of Article 2, paragraph 1, subparagraphs 2 to 4 in 4 of the most recent 6 business days.
If disposition measures under any of the standards in the preceding paragraph have been announced for an Emerging Stock for the first time within the most recent 15 business days, the TPEx will announce the name of the stock and the trading information that should be paid attention to, and also notify securities brokers that, for 5 consecutive business days starting from the business day following announcement, when on any given day during that period the quantity of the trading orders placed by an investor for that stock reaches 10 or more 1,000-share trading units in a single trading order or a cumulative 30 or more 1,000-share trading units in multiple trading orders, the securities broker shall collect from the investor the full amount of the buy-side price or sell-side securities for all trading orders placed by the investor that day.
When disposition measures under paragraph 1 have been announced for an Emerging Stock within the most recent 15 business days, then upon a second announcement of disposition measures pursuant to the same standards on a given day, the TPEx will announce the name of the stock and the trading information that should be paid attention to, and simultaneously adopt the following measures:
- Notify securities brokers that, for 5 consecutive business days starting from the business day following announcement, for all trading orders placed for the stock by investors on any day during that period, they shall collect from the investors the full amount of the buy-side price or sell-side securities for all trading orders placed by the investors that day.
- Notify the Emerging company to make a public announcement to explain its financial and business conditions.
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| Article 5 |
When no improvement has been made after applying the provisions of Article 3 or 4, or if it believes that the trading irregularities are likely to have a serious impact on the market order, the TPEx may convene the Surveillance Operations Oversight Committee pursuant to Article 2 of the Regulations Governing Implementation of the Market Surveillance System for Securities Traded on the TPEx to decide upon and immediately announce the adoption of advance collection of funds or securities, the suspension of trading, or any other measures for disposition, and their duration.
If a disposition measure is announced pursuant to these Directions, the lead advisory recommending securities firm, with respect to the reasons for the disposition on trading irregularity of that stock, may file a request for reconsideration, attaching a statement describing the reasonableness of the trading along with specific financial and business information of the issuer for the most recent period. After the request for reconsideration has been submitted to the Surveillance Operations Oversight Committee for discussion and resolution, the Committee may terminate or adjust the disposition measures.
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| Article 6 |
These Directions and any amendments hereto shall be publicly announced and implemented after approval and/or recordation by the competent authority.
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