| Article 1 |
These Rules are adopted pursuant to Article 87-3, paragraph 2 of the Taipei Exchange Rules Governing Securities Trading on the TPEx (the "TPEx Trading Rules").
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| Article 2 |
If a securities firm is unable to fulfill clearing and settlement obligations on time, the Taipei Exchange (TPEx) may designate another securities firm to perform the clearing and settlement matters in its place.
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| Article 3 |
If a securities firm breaches clearing and settlement obligations, in addition to halting its TPEx trading business pursuant to Article 98 of the TPEx Trading Rules, the TPEx shall conduct a targeted examination to ascertain the following matters:
- The cause(s) of the breach of the clearing and settlement obligations.
- The financial status of the securities firm.
- The clearing and settlement situation between the securities firm and its clients.
- Whether the responsible persons and their employees have violated any laws or regulations.
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| Article 4 |
When a securities firm breaches its settlement obligations, the TPEx shall take measures in accordance with the Taipei Exchange Procedures for Handling Default on Settlement Obligations by Securities Firms
The Procedures referred to in the preceding paragraph shall be separately prescribed by the TPEx.
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| Article 5 |
If through a targeted examination it is found that the securities firm has violated any securities related laws or regulations or TPEx rules, the TPEx shall impose dispositions pursuant to the TPEx Trading Rules in addition to reporting such violation to the competent authority in writing.
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| Article 6 |
These Rules, and any amendments hereto, shall be publicly announced and implemented following approval by the competent authority.
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