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Title: Taipei Exchange Rules Governing Odd Lot Trading
Date: 2020.03.04 ( Amended )

Article Content

 
Article 1     These Rules are adopted pursuant to Article 61 of the Taipei Exchange (TPEx) Rules Governing Securities Trading on the TPEx ("the Trading Rules").
Article 2     The term "odd lot trading" as used in these Rules means the trading by a principal of any single kind of domestic or foreign TPEx listed shares in a quantity less than a standard trading unit of those shares.
Article 3     In odd lot trading, the trading unit is one share. The trade quantity quoted must be one share or a multiple thereof.
Article 4     The hours for quotes for odd lot trades are the regular trading session from 9 a.m. to 1:30 p.m., and the after-hours trading session from 1:40 p.m. to 2:30 p.m. A trade quote is in force only during the trading session in which the quote is made .
    Quotes for odd lot trades shall be limit-price quotes, and shall be valid on the current day only. To make a change to the content of a trade quote, unless the change is a reduction in the quoted quantity, the original trade quote shall first be canceled, and a new quote then made.
    During the 9 a.m. to 1:30 p.m. session for odd lot trading quotes, the TPEx will disclose on a real-time basis trial-calculated trade prices and quantities, and the trial-calculated prices and quantities of the five highest unexecuted buy quotes and five lowest unexecuted sell quotes. In addition, the TPEx will disclose, on a real-time basis during the trading hours, executed trade prices and quantities, and the prices and quantities of the five highest unexecuted buy quotes and five lowest unexecuted sell quotes.
    In the after-hours session for odd lot trading quotes, during the 5 minutes before the end of the trade quote period, the TPEx will in real time trial-calculate the trade price and disclose the highest unexecuted buy quote and the lowest unexecuted sell quote. After matching, it will disclose the trade price and quantity.
Article 5     In odd lot trading, trading orders and reports between the broker and the principal shall be handled in accordance with the provisions governing trading by electronic means. However, this restriction does not apply where the principal is a professional institutional investor.
    Professional institutional investor in the preceding paragraph means a domestic or foreign bank, insurance company, bills finance company, securities firm, fund management company, government investment institution, government fund, pension fund, mutual fund, unit trust, securities investment trust enterprise, securities investment consulting enterprise, trust enterprise, futures commission merchant, futures service enterprise, or other institution approved by the competent authority.
    Paragraph 1 does not apply to after-hours odd lot trading.
Article 6     The range of prices at which odd lot trades can be placed are governed by Article 55 of the trading Rules.
Article 7     Beginning from 9:10 a.m. odd lot trading is conducted by call auction with matching and execution every three minutes. However, for securities for which a periodic trading method is imposed by TPEx rules, odd lot trading of the securities is matched and executed according to the original time interval under those rules.
    In odd lot trading, quotes are matched based on price priority and time priority, as determined by the following principles:
  1. Price priority principle: Higher-priced buy quotes have priority over lower-priced buy quotes. Lower-priced sell quotes have priority over higher-priced sell quotes. For quotes at the same price level, the priority is determined by the time priority principle.
  2. Time priority principle: For quotes entered prior to the first matching, the priority is determined by random arrangement by computer. For quotes entered after the first matching, the priority is determined based on the chronological order in which the quotes were entered.
    At the end of the trade quote period in after-hours odd lot trading, orders are matched and executed by call auction. The priority for execution of trade quotes is based on the price priority principle. For quotes at the same price level, the priority is determined by random arrangement by computer.
Article 8     In odd lot trading, from the first matching and execution until a certain period of time before the end of the trade quote period, if during a period before a matching the trial-calculated price of a security moves beyond 3.5 percent above or below the last trade price, the TPEx will immediately postpone the matching by 2 minutes, and continue to accept entries, cancellations, and changes of trade quotes for that security until the end of the postponement period, at which time matching and execution will proceed sequentially. However, this restriction shall not apply to TPEx newly listed common stock during the period of trading without price limits, to managed stock, to securities for which extended matching intervals are implemented under TPEx rules, and to securities for which the basis price of the opening of trading is lower than NT$1.
    The preceding paragraph does not apply to after-hours odd lot trading.
Article 9     After a trade has been executed in odd lot trading, it shall be cleared and settled according to the TPEx Directions Governing Clearing and Settlement Operations for Securities Traded on the TPEx.
Article 10      Quotes and trade prices in odd lot trading do not contribute to the record of the high or low trade prices of the day, nor do they contribute to the calculation of the reference price.
Article 11     Any matter that is not addressed in these Rules shall be governed by the TPEx Trading Rules.
Article 12     These Rules, and any amendments hereto, shall be implemented at a specified time following approval and recordation by the competent authority.