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These Directions are adopted pursuant to Article 62-1, paragraph 2 of the Taipei Exchange (TPEx) Rules Governing Securities Trading on the TPEx (the "Trading Rules").
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Filing procedures for changes to trading category
- When applying to change, in part or in whole, a normal-settlement trade executed during the prescribed trading hours for the automated trade matching system under Article 40 of the Trading Rules, or a trade executed through after-hours fixed-price trading under Article 35-5 of the Trading Rules, which involves any of the following trading category changes, a securities firm shall fill out a Statement of Change to Trading Category by Principal, have it approved by a responsible supervisor, and then electronically transmit the change information to the computer system designated by the TPEx between 9 a.m. and 7 p.m. on the trading day. If the information cannot be transmitted in a timely manner due to an accident, the securities firm shall immediately notify the TPEx by telephone and request an extension of filing time:
- Change of trading category between ordinary trading and margin trading.
- In margin trading, change of trading category between margin purchase and short sale.
- Change of trading category between ordinary trading sale and sale of borrowed securities.
- Change of trading category between sale of borrowed securities and margin trading sale.
- A securities dealer may file to change trading category between ordinary trading sale and sale of borrowed securities. However, it may not file to change trading category with respect to an ETF hedge account (777777~8 under the securities dealer's account). The provisions of the preceding paragraph shall apply mutatis mutandis to the remaining procedures.
- (Deleted)
- Upon receipt of a message forwarded by the TPEx informing of a principal's breach of contract for failing to perform settlement obligations on time, a securities broker, on that day, may not apply to change any of that principal's trades in ordinary trading to a margin purchase or short sale, as the case may be.
- For a day trade that has been reported, a securities firm may apply to change the trading category of that trade only after having withdrawn the report.
- For a margin trade or sale of borrowed securities that has been executed, a securities firm may report a day trade for that trade only after having changed the trading category to ordinary trading.
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A securities broker shall be solely responsible for any dispute between it and an investor arising out of its handling of changes to trading category.
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Handling of violations:
- (Deleted)
- (Deleted)
- (Deleted)
- If a securities firm fails to enter any change information within the prescribed time period, the TPEx will notify the securities firm to make correction pursuant to Article 93 of the Trading Rules. This excludes circumstances with reasonable cause and with the approval of the TPEx.
- Where a securities fim commits a serious violation in its trading category change operations, the TPEx may take disciplinary action against the securities firm pursuant to Article 93 or 94 of the Trading Rules and may also take action to warn the securities firm's violating personnel in charge or halt the personnel's execution of business for a period from 1 month to 6 months pursuant to Article 100 of the Trading Rules.
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These Directions, and any amendments hereto, shall be publicly announced and implemented after approval for recordation by the competent authority.
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