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Trading Mechanism Introduction

Trading Mechanism Introduction

  1. Regular Trading
  2. Odd Lot Trading
  3. Block Trading
  4. After-Hours Fixed-Price Trading
  5. Reverse Auction

Regular Trading

  1. Trading Hours
    1. Applicable Time
      2. (1) Order Placing Hours: Monday ~ Friday, 8:30-13:30.
      (2) Trading Hours: Monday ~ Friday, 9:00-13:30.
    2. Postponement of the Opening and Closing Sessions
      3. For your information, please refer to the Information disclosure before market opening and closing / Supporting Measures for Suspension from Opening and Closing
    3. Intraday Volatility Interruption
      4. For more information, please refer to Continuous Trading / Intraday Volatility Interruption
  2. Trading Units
    3. Types of securitiesTrading units
    Domestic stocks, foreign stocks (primary listings), certificates of entitlement to new shares, certificates of payment of shares, certificates of entitlement to new shares form convertible bonds, preferred shares with warrants, corporate bonds with warrants1,000 shares
    Warrants, REITs , TDRs, company warrants, ETFs (excluding offshore ETFs), ETNs1,000 units
    Foreign stocks (secondary listings), offshore ETFsNot limited for 1,000 shares(units)
    Convertible bondspar value of NT$ 100,000
  3. Daily Price Limits
    4. Types of securitiesPrice limits
    Domestic stocks, foreign stocks (primary listings), Convertible bonds, certificates of entitlement to new shares, certificates of payment of shares, certificates of entitlement to new shares form convertible bonds, REITs, TDRs, ETFs, ETNs10 percent above and below the auction reference price at market opening
    Warrants
    1. Limits on warrants for which the underlying is a domestic stock or a domestic ETF shall be calculated as follows:
      1. For call warrants Limit-up price = Auction reference price at market opening for the given day + (Limit-up price of the underlying security for the given day minus the Auction reference price at market opening for the underlying security for the given day) × Exercise ratio Limit-down price = Auction reference price at market opening for the given day - (Auction reference price at market opening for the underlying security for the given day - Limit-down price of the underlying security for the given day) × Exercise ratio
      2. For put warrants
        Limit-up price = Auction reference price at market opening for the given day + (the Auction reference price at market opening for the underlying security for the given day – the Limit-down price of the underlying security for the given day) × Exercise ratio
        Limit-down price = Auction reference price at market opening for the given day – (Limit-up price of the underlying security for the given day – Auction reference price at market opening for the underlying security for the given day) × Exercise ratio.
    2. For basket warrants, index warrants, or futures warrants, please refer to the “Taipei Exchange Regulations Governing the Trading of Call (Put) Warrants.”
    3. No price limits are imposed on warrants for which the underlying is an international ETF, an offshore ETF, a foreign security, a foreign index, or gold.
    Leveraged or inverse ETFs comprising only domestic securities, leveraged or inverse ETNs comprising only domestic securities10 percent multiplied by the multiple of the fund
    Preferred shares with warrants, corporate bonds with warrantsThe Limit-up price =the Auction reference price on the market opening for the given day *(1+10%) + (The Limit-up price of the underlying security for the given day –the Auction reference price at market opening for the underlying security for the given day) × the Exercise ratio
    The Limit-down price =The Auction reference price at market opening for the given day *(1-10%)- (the Auction reference price at market opening for the underlying security for the given day – the Limit-down price of the underlying security for the given day) × Exercise ratio
    Company warrantsThe Limit-up price = the Auction reference price at market opening for the given day + (the Limit-up price of the underlying security for the given day –Auction reference price at market opening for the underlying security for the given day) × the Exercise ratio
    the Limit-down price = the Auction reference price at market opening for the given day - (the Auction reference price at market opening for the underlying security for the given day – the Limit-down price of the underlying security for the given day) × Exercise ratio
    Newly listed common stocks on the first 5 days, foreign stocks (secondary listings), ETFs comprising foreign securities, offshore ETFs, leveraged or inverse ETFs comprising foreign securities, ETNs comprising foreign securities, leveraged or inverse ETNs comprising foreign securitiesNo Price limits
  4. Tick Size
    5. Types of securitiesMarket PriceTick Size
    Domestic stocks, foreign stocks, REITs, TDRs,certificates of entitlement to new shares, certificates of payment of shares, certificates of entitlement to new shares form convertible bonds, preferred shares with warrantsP < $10NT$0.01
    $10 ≤ P < $50NT$0.05
    $50 ≤ P < $100NT$0.10
    $100 ≤ P < $500NT$0.50
    $500 ≤ P < $1,000NT$1.00
    P ≥ $1,000NT$5.00
    Company warrants, warrantsP < $5NT$0.01
    $5 ≤ P < $10NT$0.05
    $10 ≤ P < $50NT$0.10
    $50 ≤ P < $100NT$0.50
    $100 ≤ P < $500NT$1.00
    P ≥ $500NT$5.00
    ETFs, ETNsP < $50NT$0.01
    P ≥ $50NT$0.05
    Corporate bonds with warrants,convertible bondsP < $150NT$0.05
    $150 ≤ P < $1,000NT$1.00
    P ≥ $1,000NT$5.00
  5. Matching
    6. PeriodMatching Methods
    Opening session 8:30 - 9:00
    (or first matching at 9:02 in case of postponement)    		Call auction
    Intraday trading session 9:00 - 13:25Continuous trading
    Intraday Volatility InterruptionCall auction
    Closing session 13:25 - 13:30
    (or final matching at 13:33 in case of postponement)    		Call auction
  6. Order Types
    1. Call auction: Limit orders (ROD) only.
    2. Continuous trading: Market orders (ROD, IOC, FOK) and Limit orders (ROD, IOC, FOK).
  7. Information Disclosure
    1. During the period of the last 30 minutes before opening (8:30-9:00) and the last five minutes before closing (13:25- 13:30), simulated transaction prices, simulated trading volumes and simulated best five bid/ask prices and bid/ask volumes are disclosed every 5 seconds, approximately. For further information, please refer to Information Disclosure before market opening and closing
    2. In continuous trading, prices, volumes, and best five bid/ask prices are disclosed on a real-time basis. A five-second snapshot is also provided.

Odd Lot Trading

  1. Intraday Odd Lot Trading Please refer to Intraday odd lot trading
  2. After-Hours Odd Lot Trading
    1. Trading hours: orders placed from 13:40 to 14:30, and a one-time call auction at 14:30.
    2. Trading units: 1 share
    3. Daily price limits: the same as with the regular trading
    4. Tick size: the same as the regular trading
    5. Matching: a one-time call auction at 14:30
    6. Order types: limit orders (ROD) only
    7. Information disclosure: during the 5 minutes before the end of the time for orders placing (i.e. 14:25- 14:30), the best buying and selling price will be disclosed on a real-time basis.

Block Trading

  1. Trading Hours
    1. Paired：08:00-08:30, and 09：00-17：00.
    2. Non-paired：09：00-17：00.
  2. Minimum Amount/Volume
    1. A single security: at least 500 trading units, or a value greater than NT$15 million;
    2. A basket of stocks: at least 5 different stocks and a value greater than NT$15 million.
  3. Daily Price Limits: the same as with the regular trading
  4. Tick Size: NT$ 0.01
  5. Matching
    1. Paired: transactions shall be executed according to the term of volumes and prices quoted by the buyer and the seller.
    2. Non-paired: continuous trading.
  6. Order Types: Limit orders (ROD) only.
  7. Information Disclosure
    8. Paired transactions executed in the pre-opening session（8:00- 8:30) will be disclosed after 9:00. Other transactions will be disclosed on a real-time basis, including unexecuted and executed prices and trading volumes.

After-Hours Fixed-Price Trading

  1. Trading Hours
    2. Quotations on behalf of the principals shall be submitted from 14:00 to 14:30. The matching and execution thereof shall be conducted through an automated computer system at 14:30.
  2. Trading Units: the same as regular trading
  3. Daily Price Limits
    4. The transaction price shall be the closing price of the security of the day. If there is no closing price for a security at that day, the after-hours fixed-price trading of this security shall be temporarily suspended.
  4. Daily Price Limits: the same as with regular trading.
  5. Matching: prioritized in a computer-determined random order.
  6. Order Types: limit orders, with the closing price of the day.
  7. Information Disclosure
    8. The volume of quotes shall be disclosed prior to execution as the aggregate volume of trading quotes of all securities, and the separate volume of trading quotes of individual securities, and after execution as the aggregate traded volume of all securities and the separate traded volumes of individual securities.

Reverse Auction

  1. Trading Hours: quotations shall be submitted between 15:00 and 16:00.
  2. Trading Units: determined by the principal.
  3. Daily Price Limits
    1. Floor price for a reverse auction: Limited to within a range of 15 percent above or below the auction reference price at market opening on the current day, provided that if there is no price fluctuation limit for a given security, at the time of application a floor price limited to within 15 percent above or below the closing price on the reverse auction date may be selected.
    2. There is no restriction on the range of prices quoted for the reverse auction. However, only quotations which are lower than the floor price may be executed.
  4. Tick Size: the same as with the regular trading
  5. Auction Method
    6. The principal initiating the reverse auction may select one of the following methods:
    1. The highest sell quote that does not exceed the ceiling price and that satisfies the requirement of quantity to be purchased will be the successful bid-to-sell price. All of the orders having a sell quote lower than the successful bid-to-sell price will be executed at the successful bid-to-sell price. If the quantity of the sell quotes submitted at the successful bid-to-sell price exceeds what can be executed, an integral number of trading units will be distributed proportionately to such orders based on the quantity of each order. If there is a remainder afterwards, it will be distributed to these orders in a random order determined by computer for execution, with allocation to each order limited to one trading unit.
    2. The lower sell quotes among those not exceeding the ceiling price will have priority of execution, and the trades will be executed in sequence based on the prices quoted in the individual orders. In the case of identical sell quotes, an integral number of trading units will be distributed proportionately to such orders based on the quantity of each order. If there is a remainder afterwards, it will be distributed to these orders in a random order determined by computer for execution, with allocation to each order limited to 1 trading unit.
  6. Order Types: limit orders (ROD) only
  7. Information Disclosure
    1. The rules of quotation for the reverse auction shall be announced three days before the reserve auction.
    2. The floor price shall be announced through the Market Information System (MIS) at the time when the reverse auction begins.
Note: The English version is for reference only. In case of any discrepancy between the English version and the Chinese version, the Chinese version shall prevail.