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Title: Taiwan Stock Exchange Corporation Regulations Governing After-Hours Fixed-Price Trading
Date: 2011.09.28 ( Announced )
Date: 2014.06.16 ( Amended )

Article Content

 
Article 1     These Regulations are adopted pursuant to Article 74-1 of the TWSE Operating Rules to promote smooth circulation of securities and sound mechanisms in the securities market.
Article 2     After-hours fixed-price trading of securities other than bonds (excluding convertible corporate bonds) traded on the TWSE centralized exchange market shall be governed by these Regulations. Matters on which these Regulations are silent shall be governed by the TWSE Operating Rules or other applicable regulations.
Article 3     Quotes for after-hours fixed-price trading by securities firms on their own accounts or for the accounts of their customers shall be given from 2:00 p.m. to 2:30 p.m., and are valid only for the day on which they are made.
Article 4     After-hours fixed-price trading quote volume shall be a single trading unit or multiples thereof. The volume of a single security transacted in one trade shall not exceed 499 trading units.
Article 5     The TWSE conducts the matching and execution of after-hours fixed-price trading quotes through an automated computer system at 2:30 p.m. on the current trading day. The trade price is the closing price on the current day the quote is made.
    The term "closing price" in the preceding paragraph means the closing price as defined in Article 58-3, paragraph 3 of the TWSE Operating Rules. If there is no closing price for a given security during the market trading hours of the current trading day (the trading hours are as defined in Article 3 of the TWSE Operating Rules), the after-hours fixed-price trading of the security shall be suspended.
Article 5  Matching of after-hour fixed-price trading quotes shall be performed by this Corporation through an automated computer system at 2:30 p.m. on the same trading day. The transaction price shall be the closing price on the same day as the quote was made.    The term "closing price" in the preceding paragraph means the final transaction price during the market trading hours of 9:00 a.m. to 1:30 p.m. of the current trading day (hereinafter referred to as the "market trading hours") as prescribed in Article 3 of the Operating Rules of this Corporation.    If there is no transaction price for a certain security during the market trading hours of the current trading day, after-hour fixed-price trading of such security shall be suspended.
Article 6     The priority for matching and execution of after-hours fixed-price trading quotes shall be sequenced randomly by computer.
    Once an after-hours fixed-price trading quote is executed, an execution report form will be printed on the printer of the participating securities firms.
Article 7     The volume of after-hours fixed-price trading quotes shall be announced prior to execution as the aggregate volume of trading quotes of all securities, and after execution as the aggregate executed volume of all securities and the separate executed volumes of individual securities.
Article 8     After-hours fixed-price trades shall be tabulated together with the trades executed during market trading hours on the same trading day into a consolidated Settlement Calculation Statement, and shall be settled as normal settlement trades.
Article 9     Purchase and sale of the same security by a principal during normal trading and in after-hours fixed price trading respectively on the same trading day shall not be settled by offsetting them against each other. However, a buy or sell trade in normal trading before market close and an opposite offsetting trade of the same security in after-hours fixed-price trading on the same day in accordance with the Operational Rules Governing Day Trades of Securities may be settled by offsetting them against each other.
Article 10     Margin purchase and short sale of the same security by a principal during market trading hours and in after-hours fixed-price trading respectively on the same trading day may be settled by offsetting of the margin purchasing and short selling.
Article 11     After the close of market trading hours, the TWSE shall produce a securities market report in accordance with regulations. After the close of after-hours fixed-price trading, the TWSE shall further produce and make public a consolidated securities market report including trades executed during market trading hours.
Article 12     These Regulations and any amendments hereto shall be implemented following submission to and approval by the competent authority.