Emerging stock
When a company applies for ESB registration, a consent letter will be issued and an announcement of trading start date will be made usually in 3 business days (t+2) from the date of receipt of application (t), and the company information will be posted on TPEx website for at least 5 business days. Thus a company can at the earliest trade its stocks on ESB on the 9th business day (t+8) from the date of application for ESB registration.
Yes. Investors can open an account with any of securities brokers or use the existing account to trade securities on the TPEx. After signing an “Emerging Stock Risk Disclosure Statement”, they can start to trade Emerging Stocks including trading through the Click System or outside system price negotiation.
Investors can place orders to buy or sell Emerging stocks from 9:00AM - 3:00PM each trading day.
ESB is a quote-driven market. The counterparty must be the Recommending Securities Firms(RSFs) thereof no orders can be executed between investors, besides the execution price is RSF’s quote. Thus the quotes provided by RSFs are important reference for investors when they plan to place an order. TPEx begins the display of the quotes of RSFs at 9:00AM each trading day and the Emerging Stock Computerized Price Negotiation and Click System (the "Click System") begins to accept the input of orders at 9:00AM every day. Thus to increase the chance of trade execution, investors are suggested to place orders after the quote information is displayed starting at 9:00AM.
If the order price reaches the range of quotes from Recommending Securities Firms (RSFs) (“order meeting the price quoted”: An investor’s buy order≧ A RSF’s ask quote; an investor’s sell order ≦ A RSF’s bid quote), the Click System will automatically allocate the order to the RSF with the best quote (highest bid quote or lowest ask quote) and trading will be executed immediately. If the order price does not reach the range of quotes from the RSFs (trading order not meeting the price quoted: An investor’s buy order < A RSF's ask quote; An investor’s sell order > A RSF’s bid quote), the RSF is not obligated to execute the order and no order will be executed right away.
ESB is a quote-driven market. The counterparty must be the Recommending Securities Firm (RSF). Thus information publicly disclosed is the ask and bid quotes provided by RSFs. The order information of investors is not supposed to disclose.
- Because ESB is a quote-driven market, the counterparty must be the Recommending Securities Firm (RSF) thereof no orders can be executed among investors. There must be a spread between the bid and ask quote (due to necessary operating costs required by RSFs in running the Emerging Stocks market making business). When an investor buys Emerging Stocks , it represents that a RSF sells Emerging Stocks to an investor (execution prices are ask quotes from RSFs). When an investor sells Emerging Stocks, it represents that a RSF buys Emerging Stocks from an investor (execution prices are bid quotes from RSFs).
- Therefore, investors should determine an execution price that is the price for investor’s buy order or sell order while referring to the execution price. TPEx’s official website’s “ Homepage > Emerging stocks > Day Trading Information”and“ Homepage > Emerging stocks > Trading Information of Individual Stocks”both disclose “Investors’ Trading Types” for the reference of the public.
- For example, although an investor’s buy order is higher than the latest execution price, it could be another investor’s sell order execution price. Therefore, buy and sell orders are not suitable for comparison. Investors should take into consideration whether the RSF’s ask quote is lower than the buy order (or whether the bid quote is higher than the sell order) in order to increase the chance of execution.
No.ESB is a quote-driven market. Emerging Stocks are traded by negotiation, guided by the quotes of recommending securities firms (RSFs). RSFs provide quotes on Emerging Stocks daily based on their professional judgments. Thus TPEx only discloses the weighted average trading price of Emerging Stock every trading day, but no so-call“opening price” or “closing price”.
ESB is a negotiated trading market driven by the quotes provided by Recommending Securities Firms (RSFs). The order prices placed by investors should refer to the quotes of RSFs. When an Emerging Stock undergoes ex-rights/ex-dividend, TPEx will not publish its ex-rights/ex-dividend reference prices, unlike the practice for TPEx-listed stocks. However the RSFs will take into consideration of the ex-rights/ex-dividend information of Emerging Stocks and adjust bid and ask quotes on the ex-rights/ex-dividend date for the reference of investors.
If an emerging stock company has a circumstance under Article 38 of the TPEx Rules Governing the Review of Emerging Stocks for Trading on the TPEx, TPEx will suspend the trading of its stock and trading of the stock on ESB is suspended starting from the 5th business day following the date of announcement. Ex.: TPEx announces trading suspension of an emerging stock on 2018/6/24, the last trading day of the stock will be 2018/6/28 and the stock cannot be traded on ESB starting 2018/7/1 (inclusive). Before a stock stops trading, the recommending securities firms shall continue to observe their obligations to give continuous quotes and execute transactions according to established rules. If the trading of an emerging stock is suspended due to “a condition specified in Article 282 of the Company Act exists and a court has prohibited the transfer of its shares pursuant to Article 287, paragraph 1, subparagraph 5 of the Company Act”, the suspended stock will stop trading starting from the next business day following the date of announcement. Ex.: TPEx announces trading suspension of an emerging stock on 2018/6/24, the last trading day of the stock will be 2018/6/24 and trading of the stock on ESB is suspended starting 2018/6/25 (inclusive).
If an emerging stock company has a circumstance under Article 40 of the TPEx Rules Governing the Review of Emerging Stocks for Trading on the TPEx, TPEx will terminate the trading of its stock and trading of the stock on ESB is terminated starting from on the 15th day following the date of announcement. Ex.: TPEx announces trading termination of an emerging stock on 2018/6/24, and trading of the stock on ESB is terminated starting 2018/7/9 (inclusive). If the trading of an emerging stock is terminated due to “transferred to listing on the TWSE or TPEx”, the termination commences on the next business day following the date of announcement. Ex.: TPEx announces trading termination of an emerging stock on 2018/6/24, the last trading day of the stock on ESB is 2018/6/24, and trading of the stock on ESB is terminated starting 2018/6/25 (inclusive) when it is transferred to listing on the TPEx or TWSE.
- Trading related halt: When the average execution price of an emerging stock during the trading session and its average execution price on the previous trading day differs by 50% or more, the trading of such emerging stock will be halted until the end of the trading hours on that day, and trading will resume on the next trading day.
- Event related halt: Starting March 23, 2020, if an emerging stock board (ESB) company plans to announce or call a board of directors meeting to decide on a material event under Article 37-1 of the TPEx Rules Governing the Review of Emerging Stocks for Trading on the TPEx before 5:00PM on a trading day, the company should apply to TPEx for trading halt. TPEx may announce trading halt of the emerging stock as requested by the company, or TPEx may, if deemed necessary, halt on its own decision the trading of the stock in accordance with Article 37-2 of the aforementioned Rules. In principle, each trading halt lasts one trading day up to three trading days, and the emerging stock board (ESB) company may apply for resumption of trading after it has fully announced information or explained the matter relating to the halt.
Investors can visit the following sites to inquire or learn about information and list of emerging stock board (ESB) companies with trading halt:
- TPEx website:
- Search Latest Emerging Market News on trading halt/resumption of emerging stocks:
- Emerging Stock > Latest Emerging Market News
- Emerging Stock > Emerging Market Report > System Publication
- The market information displayed below have different color blocks to indicate respectively individual stocks that are halted trading due to an event or trading condition. Gray color represents stocks that are halted trading due to a material event, orange color represents stocks that have resumed trading, and pink color represents stocks that are halted trading due to trading condition (emerging stock cooling off mechanism).
- Emerging Stock > Latest Stats
- Emerging Stock > Emerging Market Report > Individual Stock Trading Information, Market Information by Industry or Market Comparison
- To inquire a list of emerging stock board (ESB) companies that are/were halted/resumed trading during a specific period of time:
- Trading related halt: Announcement & Law Inquires > Market Announcement > Trading halt of the Emerging Stock during trading hours
- Event related halt: Announcement & Law Inquires > Market Announcement > Trading Halt/ Resumption Trade
- Market Observation Post System (MOPS):
Investors can inquire information on individual stocks with trading halt under “Material Information and Announcement”; however it should be noted that an emerging stock board (ESB) company is required to announce related information within one hour after receiving a notice of trading halt or trade resumption from TPEx. So there may be some time lag in the information posted on MOPS.