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Title: Taipei Exchange Rules Governing the Use of Securities Trading Information
Date: 2009.06.26 ( Announced )
Date: 2009.06.26 ( Amended )

Article Content

 
Chapter I General Principles
Article 1     These Rules are adopted in accordance with Article 39-1 of the Taipei Exchange (TPEx) Rules Governing Securities Trading on the TPEx, with the purposes of effectively regulating the use of trading information and promoting the disclosure of trading information.
Article 2     Matters on which these Rules are silent shall be governed by other applicable acts and regulations, or by applicable bylaws, circulars, or public announcements of the TPEx.
Article 3     For the purposes of these Rules, the following terms shall have the following meanings:
  1. Competent authority: Financial Supervisory Commission, Executive Yuan.
  2. User applicant: Any securities firm, futures firm, telecommunications enterprise, data company, news media organization, qualified institutional investor, cable radio or television operator, satellite television enterprise, Internet operator, or other enterprise that has the approval of the TPEx, which applies on the basis of these Rules to use trading information.
  3. Trading information: Information related to TPEx trading in securities that has been developed or transmitted by the TPEx, as well as any derivative information arising therefrom.
  4. Electronic display device: A single screen with options to display technical analysis charts for securities data or to search contents.
  5. Television wall: A bank of television screens used to display securities data, in whole or in part.
  6. Real-time information and delayed information: Trading information transmitted while transactions are taking place is "real-time information." Trading information that is lags 20 minutes or more behind real-time information is "delayed information."
  7. After-hours information: Same-day information about securities data transmitted after the close of trading is after-hours information.
  8. Direct connection and indirect connection: When a user applicant directly links to the computer equipment of the TPEx to access trading information, this is a direct connection; when a user applicant indirectly accesses trading information through another user applicant, this is an indirect connection.
  9. Data subscriber: A subscriber who receives trading information via relay transmission from a user applicant.
Article 4     Except for 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 TPEx will be used:
  1. Electric display panels or ticker displays for securities data.
  2. Terminals for trading use.
  3. Execution of brokerage contracts, receipt of securities trading orders, or delivery and settlement of securities trades.
  4. Activity related to the conduct of business similar to that of a securities firm.
Article 5     Trading information and all software or hardware provided by the TPEx are the property of the TPEx. Where any of these may at law be the subject of a copyright, trademark, or patent, then such rights and related interests shall be vested in the TPEx. If any pirating, theft, or other unlawful use is discovered, the TPEx may pursue legal action and seek damages in accordance with law.
Article 6     (deleted)
Article 7     (deleted)
Chapter II Application for Use
Article 8     Prior to an application for transmission via direct connection, there shall first be successful completion of a test of the connection, conducted by the TPEx. Operations involving connection with the TPEx trading information system must not affect the TPEx's trading in securities on the TPEx, and the TPEx may restrict the filing of applications as necessary.
    A user applicant shall specify in the application the type and quantity of equipment and where it will be installed. Installation may take place only upon approval from the TPEx, and a user applicant may neither relocate equipment nor install additional equipment without the approval of the TPEx.
    A user applicant wishing to switch to an indirect connection to use TPEx trading information shall first report to the TPEx for approval; the same applies to any changes.
Article 9     Data companies and telecommunications companies applying to use trading information shall be required to meet the following conditions:
  1. Qualifications:
    1. The applicant must have a license issued by the competent authority for the relevant industry as well as an equipment room that has passed an inspection of the Directorate-General of Telecommunications.
    2. The applicant must have the capability to independently develop and maintain software, or must have retained the services of a provider who has the capability to develop and maintain software.
    3. The head office must establish a monitoring and control center possessing the capability to maintain operational control, and staff it with software and hardware engineers.
    4. The applicant must have capital sufficient to operate for one year.
    5. The applicant must not, within the past two years, have committed any violation of these Rules that resulted in contract termination.
  2. Materials to be submitted for review:
    1. Application form.
    2. Photocopy of the identification card of the responsible person or representative.
    3. Photocopy of proof of company registration or, for a foundation, a photocopy of the certificate of registration.
    4. (Deleted)
    5. Photocopy of the permit license (or letter of approval) from the competent authority of the relevant industry.
    6. The financial report for the most recent year, audited and certified by a certified public accountant.
    7. Comprehensive credit reports, issued by the Joint Credit Information Center, for the company and its responsible person.
    8. Roster of directors, supervisors, managerial officers, and those shareholders whose holdings exceed 10% of company shares.
    The TPEx may separately prescribe qualifications that must be met at the time of application by user applicants whose principal line of business is not the handling of trading information, and in so doing shall consider actual needs and take care to avoid creating inappropriate barriers to market entry or prejudicing the principle of free market competition.
Article 10     A foreign user applicant applying to use trading information shall submit the following materials for review:
  1. Application form.
  2. Original documentary proof of legal personality and the scope of business, duly legalized by an overseas representative office of the ROC, or a photocopy of documentary proof issued by the local government.
  3. (Deleted)
  4. (Deleted)
    A foreign user applicant applying to use trading information through an indirect connection shall additionally submit an original document issued by and stating the agreement of the direct connection user.
Article 10-1     Applications from securities firms or futures firms to use trading information shall be handled on the basis of rules applicable to the establishment of securities firms and futures firms.
Article 11     A cable radio or television operator or satellite broadcast television enterprise that receives trading information transmitted by another user applicant for the purpose of broadcasting a trading information channel shall submit an application together with the following materials for review:
  1. If a cable radio or television system operator or direct satellite broadcast television service operator:
    1. Photocopy of the identification card of the responsible person or representative.
    2. Photocopy of proof of company registration or, for a foundation, a photocopy of the certificate of registration.
    3. (Deleted)
    4. Photocopy of the cable radio or television enterprise permit license or satellite broadcast television enterprise permit license.
    5. Documents evidencing the source of the trading information.
  2. If a cable transmission system:
    1. Photocopy of the responsible person's national identification card.
    2. (Deleted)
    3. Photocopy of the cable transmission system registration certificate.
    4. Documents evidencing the source of the trading information.
Chapter III Restrictions on Use
Article 12     With regard to trading information on which a user applicant has itself done value-added processing, the user applicant shall exercise due diligence as to the accuracy of the contents, and shall bear legal liability for any errors in its content.
    A screen that displays trading information of the type mentioned in the previous paragraph shall conspicuously display the name of the user applicant or a distinctive service mark, together with an explanatory note. Legal liability in connection therewith shall be borne by the user applicant.
    When transmitting or broadcasting trading information, the user applicant must have adequate software or hardware technology to prevent theft, pilfering, or use through unauthorized connections, of said information.
Article 13     User applicants shall retain and store the contents of the trading information transmitted or broadcast on a given day for at least three days thereafter, keeping it available for ready inspection by the TPEx.
    User applicants that concurrently broadcast news shall specifically indicate the source and basis of the news information; if there is any false or inaccurate content therein, the user applicant shall bear legal liability.
    When a user applicant discovers that trading information that it has transmitted or broadcast, or news that it has concurrently broadcast, contains incorrect information, the user applicant shall immediately and on its own initiative notify the TPEx, and at the same time issue a public correction and explanation.
Article 14     Except when consented to by the TPEx, user applicants may not rent, sell, or transfer TPEx trading information to a third party, nor use any method whatsoever to relay such information to any other location.
    The TPEx shall separately determine transmission rules for user applicants to whom trading information is transmitted by means other than a private leased circuit or a dial-up line.
    User applicants shall not use trading information provided by any party that has not entered into a Contract for Supply and Use of Trading Information with the TPEx.
    Securities firms and futures firms may not relay trading information outside their place of business.
    Trading information supplied on a website run by a securities firm shall be provided under the name of a user applicant who has received TPEx consent to be allowed to transmit trading information via the Internet.
Article 15     A cable radio or television operator or satellite broadcast television enterprise may, after applying in accordance with the provisions of Article 9 and obtaining consent from the TPEx, establish a direct connection with the TPEx to broadcast trading information or rebroadcast trading information channels produced and supplied by another operator.
    A cable radio or television operator or satellite broadcast television enterprise that has applied in accordance with the provisions of Article 11 may only broadcast trading information transmitted by another user applicant for which the TPEx has given its consent.
    A cable radio or television operator or satellite broadcast television enterprise may only broadcast trading information through sound, video images, and screen displays, and may not, without the consent of the TPEx, provide cable television subscribers with value-added processing of such information.
    Each channel provider shall produce and provide to system operators no more than four channels for broadcasting, and the TPEx may as necessary impose restrictions on the content or particulars of the programs.
Article 16     User applicants shall report to the TPEx under any of the following circumstances:
  1. Any change of the user applicant's representative, responsible person, contact person, agent, business address, telephone number, or fax number.
  2. Any change of the responsible person, address, or phone number of the user applicant's equipment room.
  3. Any instance where the company or responsible person has had a negotiable instrument dishonored due to insufficient funds, been blacklisted by a financial institution, or has otherwise experienced a loss of creditworthiness.
  4. Any material adverse effect on company finances or operations as a result of a lawsuit, non-litigated dispute, administrative disposition, administrative litigation, or a motion for provisional attachment or provisional injunction or enforcement thereof, involving the company or its responsible person.
  5. Any other matters that are required to be reported under TPEx rules.
Article 17     User applicants shall prepare a list of information equipment used or a list of channels used for the broadcasting of trading information, and shall submit said lists to the TPEx. Any additions or changes shall be reported to the TPEx within seven days of the end of each quarter.
    User applicants transmitting trading information in a designated manner shall, on their own initiative, create files for the administration of their data subscribers; user applicants who have done so may thereby be exempted from preparing and filing with the TPEx an itemized list of information equipment used as required by paragraph 2 of Article 24, and may further be exempted from reporting additions or changes in data subscribers within seven days of the end of each quarter as required by the preceding paragraph. However, user applicants shall keep the files for administration of data subscribers at their head offices, so that they are readily available for examination by the TPEx.
Article 18     To supervise the transmission and use of trading information, the TPEx may dispatch personnel or retain a certified public accountant to audit the user applicant's finances, business operations, and account books and supporting source documents, insofar as they relate to the user applicant's trading information. If further understanding of the status of the user applicant's operating revenues is required due to a change in the method of calculating fees, the TPEx may also use the audit report produced by the user applicant's certified public accountant as evidence. When necessary, the TPEx may conduct onsite visits to inspect the sites of information equipment and examine how it is being used; user applicants may not evade or refuse such inspections.
    Where a user applicant calculates fees for use of trading information based on the quantity of information equipment or searching time, trading information fees and royalties shall be separately recorded, with appropriate explanatory notes, in its account books; the user applicant moreover shall, prior to June 30 of each year, send to the TPEx two copies of its annual financial report, duly audited and certified by a certified public accountant.
Article 19     A user applicant shall enter into a written contract with each data subscriber, and shall keep the originals of these contracts at the head office, so that they may be readily examined by the TPEx.
    One copy of the contract referred to in the preceding paragraph shall be filed with the TPEx for recordation; the contract shall clearly stipulate that the user will comply with these Rules, and shall also clearly indicate the penalties as well as the civil and criminal liability to be borne for unlawful use or unauthorized relaying of trading information.
    When a user applicant is requested by the TPEx to send personnel to accompany an inspection visit to the site of information use of a data subscriber, the user applicant shall do everything possible to comply, and may not deliberately refuse or evade the inspection.
Chapter IV Management of Equipment Rooms
Article 20     User applicants that maintain an equipment room to transmit or broadcast trading information shall first obtain the TPEx's consent; the same applies when an equipment room is to be relocated or closed down.
Article 21     When a user applicant reports the establishment of its own equipment room to relay trading information, it shall provide the following information:
  1. A photocopy of the certificate of title, lease agreement, or loan agreement for the premises where the equipment room is located.
  2. The original of the equipment room layout plan (including a plan view and an elevation view).
  3. The original of the roster of liaison personnel and technical personnel assigned to the equipment room.
  4. Data companies and telecommunications enterprises must also attach a photocopy of documentary proof showing that their equipment rooms have passed review and testing by the Directorate-General of Telecommunications of the Ministry of Communications and Transportation.
    When a user applicant sets up an equipment room at a telecommunications enterprise by means of co-location or leasing of space in its equipment room, it shall provide a copy of the relevant contract(s).
Article 22     The user applicant shall keep in each equipment room a list of information equipment used or a list of channels used for the broadcasting of trading information, and moreover shall on each piece of equipment and line indicate the name of the user and the number of the line.
    The equipment in an equipment room used to transmit or broadcast shall be marked in a conspicuous manner, and shall be kept separate from equipment not used for transmission or broadcasting of trading information, for the convenience of on-site inspections made by TPEx.
Article 23     The personnel assigned to the equipment room of a user applicant shall unreservedly cooperate with on-site inspection personnel from the TPEx, and may not refuse or evade inspections.
Chapter V Administration of Data Subscribers
Article 24     Upon entering into a contract with a data subscriber for use of information, a user applicant shall ensure that the contract clearly indicates the subscriber's name, national identification card number (or company uniform invoice number), contact address, telephone number, and installation site, and shall further examine the following materials:
  1. Data subscriber applying as natural person: Documents proving the identity of the applicant.
  2. Data subscriber applying as juristic person: A photocopy of documents proving juristic-person status.
  3. Data subscriber applying as a securities or futures (or related) enterprise: A photocopy of documentary proof issued by the competent authority.

    Applicant users shall set out subscribers' names, the type and quantity of the equipment used, and the usage site in an information equipment list, to be filed with the TPEx within seven days of the end of each quarter. However, the TPEx may from time to time require that the user applicant provide this information as it deems necessary.
    Note shall be made where any of the equipment mentioned in the preceding paragraph is portable and does not require a fixed location.
Article 25     The quantity of information equipment installed by a user applicant at the premises of any single data subscriber or another user applicant may not exceed six units in total. However, this restriction does not apply to the news media, to other parties for which the TPEx has given consent, or to parties with a special concession from the competent authority.
Article 26     If there are interruptions in transmission of information or breakdowns of equipment provided by the TPEx which make normal operation impossible, the data subscriber may not seek damages.
    Where the TPEx terminates a user applicant's contract in accordance with these Rules, so that it becomes impossible for the latter to use trading information, it may not seek damages from the TPEx.
Article 27     A data subscriber may not rent, sell, or transfer TPEx trading information to any other person, or relay such information to any other location, in any manner whatsoever.
    The TPEx may dispatch personnel to do on-site inspections of the use of information by a data subscriber. The data subscriber must be on site at this time and may not evade or refuse an inspection.
Article 28     Where a data subscriber violates these Rules, or where its situation has a material adverse impact on the TPEx or on the administration of trading information by the TPEx, the TPEx may notify the user applicant to suspend the transmission of information to that data subscriber, or to take supplementary or corrective action.
    Data subscribers to whom information transmission has been suspended may not apply for transmission of trading information for a period of one year thereafter.
Chapter VI Fee Standards
Article 29     A user applicant applying to use trading information shall pay fees and royalties in accordance with the provisions of TPEx fee standards.
Article 30     A user applicant providing after-market information to its subscribers may be exempt from payment of fees once it has obtained the TPEx's consent.
    Supplementary provisions governing applications by user applicants to use delayed information and/or real-time stock index information shall be adopted separately.
Chapter VII Handling of Violations
Article 31     Where any of the following circumstances applies to a user applicant, the TPEx may notify it to take corrective or supplementary action, and may additionally impose a breach penalty of NT$20,000:
  1. Violation of the provisions of Article 16, Article 17, Article 22, paragraph 2 of Article 24, or Article 25.
  2. Violation of the provisions of a TPEx circular or public announcement, or of an order from the competent authority.
    Where a user applicant through negligence transmits trading information with erroneous content in violation of the provisions of paragraph 1 of Article 12, the TPEx may notify the user applicant to take corrective or supplementary action within a specified time limit, and the TPEx may additionally impose a breach penalty of NT$20,000 on a user applicant who experiences a total of six such incidents in any six-month period.
Article 32     Where a user applicant delays payment of fees or royalties by one month, the TPEx may impose a late fee of one percent of the amount in arrears, and send notification to deliver payment within a specified time limit.
    Where a user applicant fails to report, or incompletely reports, information user fees or royalties, in addition to having the user applicant make up the discrepancy, the TPEx may additionally impose a breach penalty of up to four times the discrepancy.
    Where a user applicant, on its own and without TPEx permission, augments or alters the method of transmission or the scope of transmitted trading information, the TPEx may notify it to take supplementary or corrective action, and may also apply mutatis mutandis the provisions of paragraph 2.
Article 33     Where any of the following circumstances applies to a user applicant, the TPEx may notify it to take corrective or supplementary action, or may impose a breach penalty of NT$50,000:
  1. Violation of the provisions of paragraph 2 of Article 8, paragraph 2 or 3 of Article 12, paragraph 3 of Article 14, or paragraph 1 or 2 of Article 19.
  2. Three instances of negligence within one month resulting in transmission trading information with erroneous content, in violation of paragraph 1 of Article 12.
  3. Failure to take corrective or supplementary action within a time limit specified by TPEx under the provisions of Article 31.
  4. Serious violation of the requirements set forth in any TPEx circular or public announcement, or of any order from the competent authority.
    In cases of violation of paragraph 3 of Article 12, if it can be proved that a reasonable standard of due care was met and necessary legal action was taken after the fact against the theft or pilfering, the user applicant may be exempted from the breach penalty.
Article 34     Where any of the following circumstances applies to a user applicant, the TPEx may notify it to take corrective or supplementary action, and may additionally impose a breach penalty of NT$100,000:
  1. The user applicant, through deliberate intent or gross negligence, transmits trading information with erroneous content in violation of Article 12, paragraph 1.
  2. Violation of paragraph 3 of Article 8, Article 13, Article 15, or Article 18.
Article 35     Where a user applicant violates Article 4; paragraph 1, 4, or 5 of Article 14; paragraph 3 of Article 19; Article 20; or Article 23; or commits a serious violation of Article 13; the TPEx may notify the user applicant to take corrective or supplementary action, and may additionally impose a breach penalty of NT$200,000.
Article 36     Where any of the following circumstances applies to a user applicant, the TPEx may impose a breach penalty of NT$500,000 or terminate the contract:
  1. Unlawful conduct involving either deliberate intent or gross negligence results in transmission of trading information with erroneous content in violation of paragraph 1 of Article 12, and seriously affects securities market trading order.
  2. Violation of paragraph 3 of Article 12 five times or more in a single year.
  3. Serious violation of paragraph 1, 4, or 5 of Article 14.
  4. Failure to pay information user fees, royalties, or breach penalties for a period in excess of two months beyond the time limit stated in a payment notice from the TPEx.
  5. Violation of securities-related acts or regulations, or of relevant rules of the TPEx, in a manner that materially affects the securities trading market or administration of trading information by the TPEx.
Chapter VIII Supplementary Provisions
Article 37     These Rules, and any amendments hereto, shall be implemented upon public announcement following approval and/or recordation by the competent authority.