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Trading of shares:
- In the event of a natural disaster, the TPEx shall determine whether to suspend trading through its stock trading system based on the following principles:
- In the event that the mayor of Taipei City announces a full-day suspension of work for all public and educational institutions in Taipei City, the TPEx will suspend its stock trading system for the entirety of the same day. All securities firms will also suspend business activities and the handling of all settlements for funds and securities due on that day shall be postponed accordingly.
- When the mayor of Taipei City announces suspension of work for all government and educational institutions in Taipei City for the morning of a given day, the TPEx will suspend its stock trading system for the entirety of the same day, and the handling of all settlements for funds and securities due on that day shall be postponed accordingly.
- When the mayor of Taipei City announces suspension of work for all government and educational institutions in Taipei City for the afternoon of a given day, trading through the TPEx trade matching system will not be suspended; however, all other after-hours trading systems will be suspended.
- In cases where the TPEx's stock trading system continues to operate for the full day:
- During the occurrence of a natural disaster, securities firms whose head office and branch offices are located outside of the disaster area will operate as usual, and settlements due the current day will be handled as usual.
- If as a result of a natural disaster, a county commissioner or city mayor of a disaster area announces suspension of work for government and educational institutions for a given day in some or all areas, securities firms in the disaster area may themselves decide whether to conduct operations as usual. Regardless of whether they operate that day, the TPEx will handle all settlements of funds and securities due that day according to the following principles, to which no securities firm may object:
- Payments for shares:
- All securities firms inside the disaster area shall request their head or branch offices outside the disaster area to handle all settlements of funds.
- A securities firm head office inside the disaster area shall designate a branch office outside the disaster area to conduct settlements on their behalf. If the designated branch office is unable to complete settlements, the TPEx may make an advance of settlement funds from the clearing and settlement funds already deposited by the given securities firm. If the deposited clearing and settlement funds are not sufficient, the securities firm apply for advance from the TPEx of settlement funds payable and reimburse the advance after the natural disaster has passed.
- When the head and branch offices of a securities firm are all located in the disaster area, the TPEx may advance the funds for settlements using the clearing and settlement funds deposited by the given securities firm. If the clearing and settlement funds already deposited are not sufficient, the TPEx will make an advance to complete settlement, and the securities firm shall reimburse the advance after the natural disaster has passed.
- When the TPEx advances funds for settlements from the clearing and settlement funds deposited by a securities firm, or when a securities firm applies for an advance of settlement funds from the TPEx to complete a settlement, the TPEx may notify the central securities depository to retain as collateral a portion of securities in the TPEx account equal in value to the securities receivable.
- Delivery of shares:A securities firm in the disaster area shall proceed as usual with settlement of any securities due on the given day that can be settled by book-entry transfer. If there is still a shortage of securities necessary for settlement in the settlement account, the TPEx may borrow securities on its behalf and complete settlement, notifying the central securities depository to retain as collateral a portion of securities in the TPEx account equal in value to the securities receivable, or to retain an equivalent receivable settlement price. Article 86-1, paragraph 1 of the Taipei Exchange Rules Governing Securities Trading on the TPEx is not applicable to such collateral.
- If as a result of a natural disaster, a county commissioner or city mayor of a disaster area announces suspension of work for government and educational institutions in the morning or afternoon of a given day in all or part of the disaster area, a securities firm inside the disaster area may decide at its own discretion whether to conduct operations as usual. Regardless of whether operations are conducted as usual, settlements of funds and securities due on the given day shall be handled according to the provisions of Point 1, paragraph 2, subparagraph B.
- If a securities firm's head office and branches are all located outside the disaster area, but it is unable to complete settlements because its settlement bank is located in another area cannot operate normally due to a natural disaster, it shall submit a written explanation, and the TPEx may proceed according to Point 1, paragraph 2, subparagraph B, item a.
- When the TPEx stock trading system does not suspend trading on the day of a natural disaster, any customer of a securities firm whose business is suspended due to the natural disaster that opens a trading account at another securities firm that is operating normally may commence trading on the same day the account is opened.
- Negotiated share trades:
- During a natural disaster, if circumstances under Point 1, paragraph 1, subparagraph A or B are encountered in negotiated share trading, trading shall be suspended for the entirety of the day, and the handling of all settlements for funds and securities due on that day shall be postponed accordingly; if circumstances under Point 1, paragraph 1, subparagraph C are encountered, a securities dealer may decide at its own discretion whether negotiated trades, or settlements for such trades, will be suspended. If a securities dealer, due to suspension of the TPEx stock trading system, is unable to report transaction information on the day of a transaction, it shall report the information to the TPEx immediately after the disaster has passed.
- Whether negotiated trades of Emerging Stocks should be suspended in the event of a natural disaster shall be determined by the mutatis mutandis application of Point 1, paragraphs 1 and 2 regarding suspension of the stock trading system. However, in the event that the mayor of Taipei City declares a suspension of work for all public and educational institutions during an afternoon, negotiated Emerging Stock trades will be suspended for the afternoon. Whether settlement matters should accordingly be postponed shall be determined by the relevant rules of the centralized securities depository.
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Trading of bonds:
- In the event of a natural disaster, the TPEx shall determine whether to suspend its electronic bond trading system based on the following principles:
- If the mayor of Taipei City declares a full-day suspension of work for all public and educational institutions, the TPEx will suspend its electronic bond trading system for the entirety of the same day, all securities firms will suspend business on that day, and all settlements due on that day will be accordingly postponed.
- In the event that the mayor of Taipei City declares a suspension of work for all public and educational institutions for a morning, the TPEx will suspend its electronic bond trading system for the entirety of the same day, all securities firms will suspend business on that day, and all settlements due on that day will be accordingly postponed.
- In the event that the mayor of Taipei City declares a suspension of work for all public and educational institutions for an afternoon, the TPEx electronic bond trading system will remain in operation until 1:30 pm; settlements due on that day will proceed as usual.
- In cases where the TPEx electronic bond trading system continues to operate for the full day:
- The Electronic Bond Trading System:
- Securities firms located outside the disaster area shall operate normally. Settlements due on that day shall be handled as usual, provided if the firm's head office is located within the disaster area, settlements shall be accordingly postponed.
- If as a result of a natural disaster, a county commissioner or city mayor of a disaster area announces suspension of work for public and educational institutions for a given day in some or all areas, each securities firm in the disaster area may use its own discretion in deciding whether or not to operate as usual. Regardless of whether the firm operates or not, all settlements due on that day shall be postponed accordingly, except when the head office is located outside the disaster area. The TPEx will proceed with settlements according to the following principles, and no securities firm may oppose its actions:
- Payments for bonds: All securities firms operating on the given day and which have funds receivable will be temporarily be responsible for a share of payments based on the proportional share of their receivables; payments made will be returned after the disaster has passed.
- Delivery of bonds: All securities firms operating on the given day and which have bonds receivable will be temporarily be responsible for a share of bond deliveries based on the proportional share of their receivables; [bond deliveries made] will be appropriated after the disaster has passed. However, when a proportional amount is less than one trading unit, the TPEx may adjust the proportional division in view of circumstances.
- A securities firm located in a disaster area where a county commissioner or city mayor of a disaster area announces suspension of work for public and educational institutions for a morning or afternoon may exercise discretion as to whether to operate as usual. Regardless of whether firms operate or not, all settlements due on that day shall be postponed except for firms with head offices located outside the disaster area. The TPEx will proceed with settlements according to Point 2, paragraph 2, subparagraph A, item b.
- Negotiated bond trades:
- In the event of a natural disaster, if circumstances under Point 2, paragraph 1, subparagraph A or B are encountered in negotiated share trading, trading shall be suspended for the entirety of the day, and the handling of all settlements for funds and securities due on that day shall be postponed accordingly; if circumstances under Point 2, paragraph 1, subparagraph C are encountered, a securities dealer shall exercise its own discretion regarding whether to suspend negotiated trade transactions or settlements for such transactions.
- If a securities dealer, due to suspension of the TPEx electronic bond trading system, is unable to report transaction information on the day of a transaction, it shall report the information to the TPEx immediately after the disaster has passed.
- The provisions regarding stocks shall be applied mutatis mutandis with regard to whether to suspend, at the time of a natural disaster, trading or settlements of convertible corporate bonds, exchangeable corporate bonds, and corporate bonds with warrants.
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Trading of open-end fund beneficial certificates and spot gold:
The provisions regarding Emerging Stocks in Point 1 shall apply mutatis mutandis.
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Additional notes:
These Measures, and any amendments hereto, shall be announced and implemented following submission to and approval by the competent authority.
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