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Title: Regulations Governing The Use Of Trading Information
Date: 2004.08.03 ( Announced )
Date: 2013.01.28 ( Amended )

Article Content

 
Chapter I General Principles
Article 1     These Regulations are specially adopted pursuant to Article 10, paragraph 2 of the Operating Rules of the Taiwan Stock Exchange Corporation, for purposes of effectively administering the use of trading information and promoting openness of trading information.
Article 2     Matters not provided for herein shall be governed by other applicable acts and regulations and the applicable bylaws, circulars, and public announcements of the Taiwan Stock Exchange Corporation ("the TWSE").
Article 3     Terms used herein are defined as follows:
  1. "Competent authority" means the Financial Supervisory Commission.
  2. "User applicant" means any securities firm, futures commission merchant, telecommunications business, information company, news media institution, cable television operator, satellite radio and television enterprise, or Internet firm applying to use trading information pursuant to these Regulations, or any other enterprise applying with the consent of the TWSE.
  3. "Trading information" means any information developed or transmitted by the TWSE relating to the centralized securities exchange market, and any derivative information thereof.
  4. "Electronic display" means a single display screen on which technical charts or indexed search results with respect to securities trading information can be displayed at one's option.
  5. "Television wall" means a combination of television screens used to display securities market price information in whole or in part.
  6. "Real-time information and delayed information" mean, respectively, trading information transmitted during market trading hours and trading information transmitted with delays of 20 minutes or more relative to real-time information.
  7. "After-market information" means information on a given day's trading transmitted after trading hours the same day.
  8. "Direct connection and indirect connection" mean, respectively, direct connection to the TWSE's computer systems by a user applicant to obtain trading information, and connection by a user applicant through another user applicant to obtain trading information indirectly.
  9. "Subscriber" means any person who receives the trading information relayed by a user applicant.
Article 4     With the exception of the places of business of securities firms, the following facilities, equipment, and activities are not allowed in any place where the trading information of the TWSE will be used:
  1. Electric display panels or ticker-style displays for securities trading information.
  2. Terminals used for bidding.
  3. Signing of trading consignment contracts, accepting consignments for securities trading, or settlement of securities trades.
  4. Engaging in business activities similar to those of securities firms.
Article 5     The trading information provided by the TWSE is the property of the TWSE. Where the trading information, software, or hardware provided by the TWSE is the subject of copyright, trademark, or patent under the law, then those rights and other related interests belong to the TWSE. Upon discovery of plagiarism, unauthorized use, or any other unlawful use of the information, the TWSE may duly initiate legal action and claim damages in accordance with law.
Article 6     (deleted)
Chapter II Application for Use
Article 7     Prior to application for direct connections and transmission of information, connection tests must be successfully completed by the TWSE. System connections with the TWSE's trading information system shall not affect the TWSE's operation of the centralized securities market. The TWSE may place restrictions on the filing of applications as deemed necessary.
    A user applicant shall specify in the application the equipment type or model, quantity, and place where the equipment will be installed. Installation may take place only upon approval from the TWSE, and a user applicant may neither relocate nor install additional equipment without the approval of the TWSE.
    Applicant users wishing to switch to an indirect connection, or make any subsequent change in connections, shall first report to the TWSE for approval.
Article 8     Each applicant user, including information companies and telecommunication enterprises, that applies to use the Trading Information shall submit the following documents:
  1. A letter of application.
  2. A photocopy of the company registration documents, or for a foundation, a photocopy of its registration certificate.
  3. A photocopy of the company's amendment registration documents.
  4. A photocopy of the permit license or approval letter issued by the competent authority for the target industry.
    Qualifications for user applicants whose principal business is not the provision of trading information may be separately prescribed by the TWSE, based on actual need and the principle of avoiding the creation of inappropriate entry barriers for enterprises or prejudice to the principle of free competition in the market.
Article 9     Foreign information companies, news media institutions and Qualified Foreign Institutional Investors (QFIIs) applying to use the trading information shall submit the following materials:
  1. A letter of application.
  2. The original of its certificate of incorporation and statement of its scope of business.
    Foreign information companies, news media institutions and QFIIs applying to obtain trading information through indirect connection shall additionally submit the original document evidencing that it will receive trading information through an indirect connection.
Article 10     Where securities firms or futures commission merchants apply for use of trading information, the relevant provisions governing the establishment of securities firms and futures commission merchants shall apply.
Article 11     Where cable radio and television enterprises or satellite radio and television enterprises broadcast trading information relayed by other user applicants through a broadcast channel, a letter of application shall be submitted along with the following documents:
  1. For cable radio and television and direct satellite radio and television broadcast system operators:
    1. A photocopy of the company registration documents, or for a foundation, a photocopy of its registration certificate.
    2. A photocopy of the company's amendment registration documents.

    3. A photocopy of its cable radio and television enterprise or satellite radio and television enterprise permit license.
    4. Documents evidencing the source of the trading information.
  2. For a cable transmission system:
    1. A photocopy of the company registration documents, or for a foundation, a photocopy of its registration certificate.
    2. A photocopy of the company's amendment registration documents.
    3. A photocopy of its cable broadcasting system registration certificate.
    4. Documents evidencing the source of trading information.
Chapter III Restrictions on Use
Article 12     A user applicant shall give due consideration to the accuracy of any trading information that it has independently processed for added value, and shall bear legal liability for any errors in its content.
    Where trading information has been processed by a user applicant pursuant to the preceding paragraph, the page display shall conspicuously indicate the user applicant's name or a service mark identifying the user applicant, along with related footnotes; the user applicant shall bear legal liability for the page content.
    When transmitting or broadcasting trading information, a user applicant shall have adequate software and hardware technology to prevent unauthorized use or plagiarism of the information, or connection to other systems.
Article 13     A user applicant shall retain for ready inspection by the TWSE the trading information it has transmitted or broadcast on any given day for a period of at least three days thereafter.
    When a user applicant simultaneously broadcasts news information, it shall specifically indicate the source and basis of such information and shall bear all legal liability for any false or untrue content therein.
    When a user applicant discovers any error in trading information transmitted or broadcast, or in news content being simultaneously broadcast, it shall on its own initiative immediately notify the TWSE and simultaneously issue a correction to the public.
Article 14     Except where otherwise approved by the TWSE, a user applicant shall not lease, sell, or transfer the TWSE's trading information to any other person, nor relay the information in any manner to any other place.
    Transmission standards for any transmission by user applicants not made over leased data lines or dial-up lines shall be separately prescribed by the TWSE.
    A User applicant shall not use any trading information other than that provided pursuant to the contract for use of trading information entered into with the TWSE.
    Securities firms and futures commission merchants shall not have the TWSE's trading information relayed to any place other than their business premises.
    Trading information provided by a web site operated by a securities firm shall be made in the name of a user applicant that has been approved by the TWSE for transmitting trading information through the Internet. Notwithstanding the above, however, a securities firm may, with the permission of the TWSE, provide trading information under its own name to the investors who have opened accounts with it.
    A user applicant that provides datafeed services may provide the service only for the internal use of the subscribers. If a subscriber is not an institution in the securities, finance, or insurance industry, the provision of such service shall require the approval of the TWSE.
    A user applicant that provides datafeed service and that jointly develops software with any collaborating enterprise shall report to the TWSE, and the collaborating enterprise may not alter the original transmission format of the user applicant nor engage in any relay transmission business.
Article 15     Cable radio and television operators and satellite radio and television enterprises, after applying for approval from the TWSE in accordance with the provisions of Article 8, may connect their systems directly with the TWSE's system in order to transmit trading information or to broadcast trading information produced and supplied by other operators.
    Cable radio and television operators and satellite radio and television enterprises that have applied for use of trading information pursuant to the provisions of Article 11 may only broadcast trading information relayed by other user applicants approved by the TWSE.
    Cable radio and television operators and satellite radio and television enterprises may only transmit trading information in the form of sound, images, and page displays, and may not, without the consent of the TWSE, provide trading information processed for added value to cable television subscribers.
    A channel provider may provide no more than four channels to any system operator for broadcasting; restrictions may be imposed on the content or particulars of the programs as deemed necessary by the TWSE.
Article 16     Given any of the following circumstances, a user applicant shall report to the TWSE:
  1. Any change of its representative, responsible person, contact person, agent, business address, telephone or fax number;
  2. Any change of the responsible person, address or contact telephone number for its equipment room; or
  3. Any instance where a bank has dishonored a check or refused a transaction of the company or its responsible person, or any other loss of creditworthiness.
  4. Any instance of a material adverse effect on the finances or operations of the company due to litigation, non-litigation, administrative disposition, administrative litigation, or the application for or execution of provisional attachment or provisional injunction involving the company or its responsible person.
  5. Other matters requiring report under the regulations of the TWSE.
Article 17     User applicants shall prepare and submit to the TWSE lists of the equipment to be used or of the channels through which trading information will be broadcast; any additions or changes to such information shall be reported to the TWSE not later than the fifth day of each month.
    User applicants which transmit the trading information in the designated manner and have established files for the administration of their subscribers may be exempted from preparing and filing with the TWSE the list of information equipment in use as required by the provisions of Article 24, paragraph 2 of the these Regulations, and may further be exempted from submitting to the TWSE not later than the fifth day of each month the reports on new subscribers or changes in the subscriber list, provided that such user applicants shall make their subscriber administration files available at their head offices for audit by the TWSE.
Article 18     In order to administer the transmission and use of the trading information, the TWSE may appoint a representative or a certified public accountant to examine and audit the finances or operations and accounting books and records of a user applicant that are related to trading information. When deemed necessary, the TWSE may inspect the sites where the equipment is used and the status of its use; user applicants may not evade or refuse such inspections. When further understanding of a user applicant's revenue status is required due to a change in the method of calculating fees, the TWSE may consult the auditing reports issued by the user applicant's certified public accountant.
    Where a user applicant calculates fees for the use of trading information based on the quantity of equipment or indexing time, the fees shall be listed independently on its accounting books with appropriate annotations.
    Two duplicates of the user applicant's annual financial report duly audited and attested by a certified public accountant shall be submitted to the TWSE not later than June 30 of each year.
Article 19     A user applicant shall enter into a written contract with each subscriber and place the originals of such contracts at its head office or the place of business of its Taiwan agent to facilitate inspection and audit by the TWSE.
    One copy of the contract referred to in the preceding paragraph shall be submitted to the TWSE for reference. The contract shall stipulate that the subscriber will comply with these Regulations, as well as the sanctions and civil and criminal liability to be borne by the subscriber for unlawfully accessing or relaying the trading information.
    When a user applicant is required by the TWSE to make a joint inspection of a subscriber's usage site, the user applicant shall make its best efforts in cooperating and shall not intentionally evade or refuse such inspection.
Chapter IV Equipment Rooms
Article 20     A user applicant maintaining equipment rooms to transmit or broadcast trading information shall first obtain approval from the TWSE, and shall file a report with the TWSE in the event the equipment room is relocated or its use is cancelled.
Article 21     The following information shall be submitted by user applicants applying to set up an equipment room for relaying trading information:
  1. The name, location, and contact telephone number of the equipment room.
  2. The equipment room layout floor plan and front view drawing and a network structure diagram.
  3. A list of the persons responsible for the equipment room.
    When a user applicant sets up an equipment room through a telecommunications enterprise by means of co-hosting or leasing of space in its equipment room, it shall file photocopies of the relevant documents with the TWSE.
Article 22     A user applicant shall make available in each equipment room a list of equipment used there or of channels through which trading information is broadcast.
    In order to facilitate inspection by the TWSE, transmission or broadcasting equipment installed in equipment rooms shall be conspicuously marked and segregated from equipment not used for transmitting or broadcasting trading information.
Article 23     Personnel assigned by a user applicant to work in an equipment room shall cooperate with the TWSE's inspectors, and may not refuse or evade inspections.
Chapter V Administration of Subscribers
Article 24     A user applicantshall establish a comprehensive customer management system, and shall preserve the integrity of customer information.
    A user applicant is required to make filings with the TWSE of non-identifiable user information on a regular basis.
Article 25     (deleted)
Article 26     Subscribers shall not be entitled to compensation when normal operation is prevented by an interruption in transmission or an equipment failure in the trading information equipment provided by the TWSE.
    Applicant users shall not be entitled to compensation if they are unable to use the trading information when, pursuant to these Regulations, the TWSE terminates the contract for use of trading information.
Article 27     Subscribers may not lease, sell, or transfer the TWSE's trading information to any other person, nor relay the information in any manner to another place.
    The TWSE may dispatch personnel to inspect the use of trading information by any subscriber.
Chapter VI Fee Standards
Article 28     A user applicant applying for use of trading information shall pay fees and royalties in accordance with the fee standards prescribed by the TWSE.
Article 29     A user applicant providing after-market information to its subscribers may be exempt from payment of fees upon obtaining approval from the TWSE.
    Supplemental regulations governing application by user applicants for use of delayed information and real-time stock price index information shall be separately adopted.
Chapter VII Handling of Violations
Article 30     Under any of the following circumstances, the TWSE may notify a user applicant to make improvement or correction within a given period, and may additionally impose a penalty for breach in the amount of NT$20,000:
  1. Violation of the provisions of Article 16, Article 17, Article 18, paragraphs 2 and 3, Article 22, or Article 24 of these Regulations; or
  2. Violation of the requirements set forth in any circular or public announcement of the TWSE, or in any letter or order of the Competent Authority.
    Where the negligence of a user applicant results in any error in the content of the trading information in violation of Article 12, paragraph 1 of these Regulations, the TWSE may notify the user applicant to make improvement or correction within a given period; where a total of six errors has been found in any six-month period, the TWSE may additionally impose a penalty for breach in the amount of NT$20,000.
Article 31     Where a user applicant has delayed payment of fees or royalties for a period of one month or longer, the TWSE shall be entitled to levy a penalty for delay in an amount equal to one percent of the payment in arrears, and to notify the user applicant to make payment within a given period of time.
    When a user applicant neglects to pay or understates the amount of fees or royalties , then in addition to payment of the deficit amount by the user applicant, the TWSE may impose a penalty in an amount not to exceed four times the amount of the deficit.
    When a user applicant, on its own and without the permission of the TWSE, augments or alters the method of transmission or the scope of the trading information, the TWSE may notify it to make improvement or correction within a given period, and apply the provisions of paragraph 2 mutatis mutandis.
Article 32     Given any of the following circumstances, the TWSE may notify a user applicant to make improvement or correction within a given period, and may additionally impose a penalty for breach in the amount of NT$50,000:
  1. Violation of the provisions of Article 7, paragraph 2; Article 12, paragraphs 2 or 3; Article 14, paragraphs 3 or 6; or Article 19, paragraphs 1 or 2 of these Regulations;
  2. Violation of the provisions of Article 12, paragraph 1 of these Regulations a total of three times in one month because of errors in the content of the trading information due to negligence;
  3. Failure to improve or correct the default within the period prescribed by the TWSE pursuant to the provisions of Article 30;
  4. Serious violation of the requirements set forth in any circular letter or public announcement of the TWSE, or any letter or order of the competent authority.
    A user applicant that has violated the provisions of Article 12, paragraph 3 herein may be exempt from the penalty for breach if able to prove that it exercised due care before the occurrence of the event and took necessary legal action afterwards against unlawful use or interception of the trading information.
Article 33     Under any of the following circumstances, the TWSE may notify a user applicant to make improvement or correction within a given period, and may additionally impose a penalty for breach in the amount of NT$100,000:
  1. Where deliberately or through gross negligence, the applicant user causes an error in the trading information transmitted, in violation of Article 12, paragraph 1.
  2. Violation of Article 7, paragraph 3, Article 13, or Article 15.
Article 34     Given a serious violation of Article 4, Article 14, paragraphs 1, 4, or 5, Article 20, or Article 13, the TWSE may notify the user applicant to make improvement or correction within a given period, and may additionally impose a fine for breach in the amount of NT$200,000.
Article 35     Given any of the following circumstances, the TWSE may impose on a user applicant a fine for breach in the amount of NT$500,000, or terminate the contract:
  1. Unlawful conduct arising out of intentional acts or gross negligence, resulting in an error in the trading information transmitted, in violation of Article 12, paragraph 1, and materially influencing trading order in the securities market.
  2. Violation of Article 12, paragraph 3 five times or more within a single year.
  3. Serious violation of Article 14, paragraphs 1, 4, or 5.
  4. Failure to pay fees or royalties or penalty for breach of agreement, followed by failure to make payment more than two months after having received notification from the TWSE to make payment within a given period.
  5. Violation of securities-related acts or regulations or the provisions of the TWSE, with a material adverse impact on the securities market or the administration of trading information by the TWSE.
Article 36     Given a user applicant's violation of Article 18, paragraph 1, Article 19, paragraph 3, or Article 23, refusal or evasion of inspection by personnel appointed by the TWSE, and continued failure to cooperate after reinvestigation by the TWSE or notification to provide an explanation or to provide account books or documentation of finances or operations, the TWSE may suspend the user applicant's use of trading information for a period of three to seven business days.
    Given continued failure to cooperate with inspection by a user applicant following the TWSE's suspension of its use of the trading information for a period of seven days pursuant to the preceding paragraph, the TWSE may terminate the contract for use of trading information.
Article 37     Given violation of these Regulations by a subscriber, or where such violation results in material adverse impact on the securities market or on the administration of trading information by the TWSE, the TWSE may notify the given user applicant to suspend transmitting trading information to the said subscriber, or notify the subscriber to make improvement or correction.
    A subscriber whose access to trading information has been suspended may not apply to receive transmission of trading information for a period of one year thereafter.
Chapter VIII Supplementary provisions
Article 38     These Regulations, and any amendments hereto, shall be implemented upon ratification by the competent authority.