Continuous trading has been launched on the securities market since March 23, 2020. The FSC has been discussing an amendment to certain articles of the “Regulations Governing Information to be Published in Order Tickets, Trade Reports, and Reconciliation Statements Prepared by Securities Brokers Upon Receiving Orders to Buy or Sell Securities”. The main points of the amendment are as below:

I.The new requirements regarding order tickets are, that the order ticket shall specify whether it is a limit order or a market order, the expiration shall include the current day, and whether it is an immediate or cancel order, or a full-or-kill order. Due to the new regulations about the expirations of multiple orders, a securities broker shall designate the expiration time when entering each order. To avoid the wrong interpretation in that a securities broker can designate the order to be effective on the current day on behalf of the client, the provision “If no expiration time is specified, the order is deemed to be valid on the current day only” will be deleted. (Article 4 of the amended provisions)

II.The new requirements regarding trading orders submitted through electronic media are, that the documented records shall whether it is a limit order or a market order, the expiration shall include the current day, and whether it is an immediate or cancel order, or a full-or-kill order. In consideration of the current practice of placing trading orders through electronic methods, the types of electronic trading are revised. (Article 12 of the amended provisions)

III.It is specified that the amended Article 4 and paragraph 2 of Article 12, related to the continuous trading mechanism, shall become effective from March 23, 2020. Other amended articles shall become effective upon the date of promulgation. (Article 13 of the amended provisions)

The FSC explained that in order to obtain diverse opinions and give a comprehensive consideration of this amendment, the proposed amendment will be published in the register of the Executive Yuan, and the full explanation and comparison table of the amendment will also be published on the FSC’s website. Any opinion may be submitted within 30 days following the day of the announcement through the page “Proposed Bills” on the FSC’s Laws and Regulations Retrieving System (URL: http://law.fsc.gov.tw/). 

 

Contact Unit: Hsiang-Chin Chen, Section Chief, Securities Firm Division, Securities and Futures Bureau

Contact Tel. (02)2774-7476

Please send any inquiry to: FSCmail