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Frequently Asked Questions

A. Main board stock

1. How long is the TPEx listing application process?

For applications to list on TPEx, if the application and review process goes smoothly, the case will be submitted to the TPEx Listing Review Committee for review in six weeks from the week following the receipt of application, and then to the TPEx Board of Directors for discussion and ratification. After an applicant has been notified of listing approval, the applicant must list the stock for trading within 3 months (which may be extended for another 3 months). Thus generally it takes about 4-5 months from the time of application to formal listing on TPEx.

2. Where to find information on listing application status and listing information?

You can search TPEx website (Listed/Registered Companies > Status of Application > Mainboard Applicant Companies/Mainboard New Listing Companies.
  1. Mainboard Applicant Companies
  2. Mainboard New Listing Companies

3. Where can I find the financial information of a Mainboard company?

( I ) The information is available on TPEx website Mainboard > Listed Companies Info > General Stock Board Listed Company.

( II )The information is also available on Market Observation Post System

(III) To make it convenient for investors to inquire the EPS of Mainboard companies, TPEx has the EPS ranking of Mainboard companies on its website Listed Companies >Listed Companies Info > Ranking of Listed Companies > TPEx Listed Company Rankings by EPS.

4. Where can I find the corporate governance information on a Mainboard company?

( I ) The results of annual corporate governance evaluation is available on TPEx website Listed Companies > Corporate Governance > Corporate Governance Evaluation System.

( II )The information is also available on Market Observation Post System → under Corporate Governance.

5. How to inquire information regarding altered trading, periodic trading, suspended trading, and reinstatement of normal settlement trading announced after the filing of financial report, related announcements and time of implementations? How to inquire the current trading method of a listed company?

( I ) Basically related announcements are made on the next business day following the deadline for quarterly filing of financial report, and the matters announced are implemented two business days after the date of announcement.

( II )Related information is available on TPEx website Announcement & Law Inquiries > Market Announcement > Market announcement.

(III) A Mainboard stock may have its trading method adjusted after the announcement of its financial report, and may be placed under disposition due to trading related factors. Latest information on stocks under disposition is available on TPEx website Announcement & Law Inquiries > Market Announcement > General Stock Disposal Information.

6. Where can I find summary information on date and place of shareholders’ meeting and dividend distribution of all Mainboard companies?

7. How to inquire information on press conference concerning material information to be held by Mainboard companies?

( I ) For press conferences that are not open to shareholders, A Mainboard company that plans to hold a press conference concerning material information shall at the latest 2.5 hours before the scheduled time post the time and date of press conference on Market Observation Post System . TPEx will also announce the conference information on the homepage of its website in the manner of marquee scroll. Shareholders can attend the conference in person or watch live stream video on TPEx website.

( II )For press conferences that are not open to shareholders, TPEx will still announce the conference information on the homepage of its website in the manner of marquee scroll and provide live stream video on its website.

8. Are there guidelines for listed companies regarding announcement of material information?

( I ) TPEx has compiled a Q&A on Directions for TPEx-listed (Emerging Stock) Companies Regarding Announcement of Material Information as guide for listed companies regarding the time and content of material information announcement and how should listed companies respond to news report.

( II )The Q&A is available for download on TPEx website Listed Companies > Required Tasks for Listed Companies > FAQ of TPEx Listed Companies and Emerging Stock Companies Disclosing Material information.

9. What is the purpose of establishing a “Key Financials” section on Market Observation Post system (MOPS) and what kind of information is disclosed?

( I ) The Key Financials section summarizes the financial information already disclosed on MOPS to facilitate public inquiry. By doing so, investors may become better informed and are forewarned of the financial status of a listed company. However, investors are still advised to read the detailed financial information of a company posted on MOPS before investing in it.

( II )With regard to the representation of indicators disclosed on “Key Financials” section, please refer to the Taipei Exchange Principles for Handling Information Disclosure on the Key Financials Section of the Market Observation Post System (MOPS) (available on http://www.selaw.com.tw )

(III) Information on Key Financials section of MOPS is available on MOPS website - Investment > Key Financials > TPEx-listed companies(Chinese only).

10. What is the difference between continuous trading and call auction?

The major differences between continuous trading and the currently adopted call auction are as follows:
  1. Under the current call auction trading system, batched orders are matched once every 5 seconds. Under the continuous trading system, orders are executed on a continuous basis whenever they are placed.
  2. Call auction uses a single price to match the orders of buyers and sellers, while continuous trading may arrive at several prices in a single match.
  3. Support various order types: Continuous trading offers various order types. Beyond the limit orders currently available, there will be market orders, immediate or cancel (IOC) orders, and fill or kill (FOK) orders. These new types of orders will enhance investment flexibility and trading strategies for investors.
  4. The current call auction trading system does not have automatic delete function, while under the continuous trading system, market orders may be automatically deleted.
  5. The current call auction trading system does not support price change function. The newly implemented continuous trading system will allow direct price change for limit orders.

11. What is the function of the reference prices of TPEx-listed stocks? How to calculate reference prices?

Reference prices are used to calculate limit-up price and limit-down price. The reference prices of stocks shall be determined in the following order:

1. The reference price on the commencement date of TPEx trading is offering price.

2. The reference price after commencement date of TPEx trading shall be determined in the following order:

(1)The closing price through the automated trading system on the preceding business day.

(2)If for the preceding business day there is no record of a trade through the automated trading system, but there is a record of a buy quote(s) or sell quote(s) at the close of trading hours, if the highest quoted buy price is higher than the basis price of the opening of trading that day, then that highest quoted buy price will be taken as the reference price for the current day; if the lowest quoted sell price is lower than the basis price of the opening of trading that day, then that lowest quoted sell price will be taken as the reference price for the current day.

(3)The basis price of the opening of trading through the automated trade matching system the preceding business day.

12. When a listed stock undergoes ex-rights/ex-dividend, how its basis price at the opening of trading and daily price fluctuation limits are calculated?

  1. Ex-rights/Ex-dividend reference price (A) = (Closing price before ex-rights/ex-dividend - Cash dividend + Subscription price per share X Subscription ratio to new shares issued)/(1+ Stock dividend ratio + Subscription ratio to new shares issued)
  2. Dividend deducted reference price (B) = (Closing price before ex-rights/ex-dividend - Cash dividend)/ (1 + Stock dividend ratio)
  3. “Cash dividend” includes cash distributed from retained earnings, legal reserve and capital reserve.
  4. Basis price at the opening of trading: For ex-rights not including a cash capital increase, the tick price closest to the ex-rights/ex-dividend reference price is used; for ex-rights including a cash capital increase, the tick price closest to the dividend deducted reference price is used.

Calculation of limit-up price and limit-down price:

( I ) When there is no cash capital increase:

1. Limit-up price = The closest tick price not higher than[ex-rights/ex-dividend reference price x 1.1]

2. Limit-down price = The closest tick price not lower than[ex-rights/ex-dividend reference price x 0.9]

( II )When there is cash capital increase:

1. Limit-up price = The closest tick price not higher than[A or B, whichever is higher x 1.1]

2. Limit-down price = The closest tick price not lower than[A or B, whichever is lower x 0.9]

13. What are the standards for TPEx-listed stocks to be eligible for margin purchase and short sale: Are those standards the same as standards for TWSE-listed stocks?

The standards for margin purchase and short sale of TPEx and TWSE are almost the same, but there are only different as follows :
  1. The issuer's paid in capital is NT$300 million or more and the issuer has been incorporated and registered for at least 3 years (if the issuer is a transferee company of a split from a TWSE or TPEx listed company, the time of incorporation starts counting from the date of establishment of the split division as shown in the financial data of the split company; if the issuer is an investment holding company or financial holding company, the time of incorporation may be calculated from the time of incorporation of the operating entity)
  2. With respect to profitability, having had no accumulated deficit, and had operating profit and net income before tax totaling 3% or more of paid-up capital on a standalone or consolidated basis, in the latest financial year. In this regard, a stock listing on TWSE is only required to maintain its net asset value per share at least reaches the par value; With regard to the circumstances for (1) Excessively intense share price volatility; (2) Excessively concentrated equity ownership; and (3) Excessively irregular trade volume, TPEx and TWSE are the same.

14. How to inquire the information of a delisted company?

( I ) If you like to inquire trading information, you can find it at the site below:

  1. For historical prices of a TPEx-listed stock, please visit TPEx website > Mainboard > After-hour trading information > Stock daily info > Input date and stock symbol.
  2. For historical prices of an emerging stock, please visit TPEx website > Emerging Stock > Historical data of individual emerging stock> input date and stock symbol.

( II )If you like to inquire the issuance data of a stock, such as basic data, material information or financial information, and the company is still in the capital market (a company that is listed on Taiwan Stock Exchange (TWSE), Taipei Exchange (TPEx), or Emerging Stock Board, or is a public company), please visit the MOPS (Market Observation Post System). If a company has withdrawn from the capital market (not TWSE-listed or TPEx-listed, or an emerging stock or a public company), TPEx has no authority over such an entity and is unable to provide any issuance data on it.

B. Emerging stock

1. How long does it usually take to trade stocks on Emerging Stock Board (ESB) from the time of application for ESB registration?

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.

2. Can investors trade the Emerging Stocks through the ordinary stock account?

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.

3. At what time of the day can investors place orders to buy or sell Emerging Stocks?

Investors can place orders to buy or sell Emerging Stock from 9:00AM - 3:00PM each trading day.

Emerging Stock Market 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.

4. How are the orders of Emerging Stock executed?

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.

5. How come the order information of investors is not disclosed?

Emerging Stock Market 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.

6. Why the order is not executed?

  1. Because Emerging Stock Market 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 Stock , 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).
  2. 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 Stock > Day Trading Information」and「 Homepage > Emerging Stock > Market Report of Emerging Stock > Trading Information of Individual Stocks」both disclose “Investors’ Trading Types” for the reference of the public.
  3. 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.
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.

7. Are there opening price and closing price for Emerging Stocks?

No.Emerging Stock Market 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 Stocks every trading day, but no so-call“opening price” or “closing price”.

8. Why there are no ex-rights/ex-dividend reference price for Emerging Stocks?

The Emerging Stock Market 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.

9. Under what circumstances will TPEx suspend the trading of an emerging stock? How many business days after the announcement of suspension will the stock actually stop trading?

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).

10. Under what circumstances will TPEx terminate the trading of an emerging stock? How many days after the announcement of termination will the stock actually stop trading?

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.

11. Under what circumstances would an emerging stock board (ESB) company be halted trading? How can the trading be resumed?

  1. 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.
  2. 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.

12. How to inquire or learn information and list of emerging stock board (ESB) companies with trading halt?

Investors can visit the following sites to inquire or learn about information and list of emerging stock board (ESB) companies with trading halt:
  1. TPEx website:
  2. (1) Search Latest Emerging Market News on trading halt/resumption of emerging stocks:

    A. Emerging Stock > Latest Emerging Market News

    B. Emerging Stock > Emerging Market Report > System Publication

    (2) 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).

    A. Emerging Stock > Latest Stats

    B. Emerging Stock> Emerging Market Report > Individual Stock Trading Information, Market Information by Industry or Market Comparison

    (3) To inquire a list of emerging stock board (ESB) companies that are/were halted/resumed trading during a specific period of time:

    A. Trading related halt: Announcement & Law Inquires > Market Announcement > Trading halt of the Emerging Stock during trading hours

    B. Event related halt: Announcement & Law Inquires > Market Announcement > Trading Halt/ Resumption Trade

  3. 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.

C. Go Incubation Board for Startup and Acceleration Firms

1. What is GISA?

GISA is the acronym for Go Incubation Board for Startup and Acceleration Firms. It is designed as a platform for small-sized non-public innovative companies with creative ideas to obtain entrepreneurship counseling and raise capital.
  • Business counseling: TPEx has established an integrative counseling mechanism to provide free accounting, internal control, marketing, and regulatory counseling services. In principle, the counseling period lasts six months up to two years.
  • Capital raising: GISA offers capital raising functions, but not trading functions to help enterprises raise the capital needed for growth and development.

2. How to apply for registration on GISA?

A company should first apply to a 「recommending agency」for innovation examination, and after obtaining an "Innovation and Creativity Opinion Letter", submit an 「Application for GISA Registration and related documents 」 to TPEx to apply for GISA registration. A company is exempt from innovation examination if its revenue reaches NT$50 million shown in its latest CPA-certified financial statements.

3. What are the privileges and obligations of a GISA company?

Privileges: A GISA company is entitled to free counseling services on accounting, internal control, marketing and regulatory compliance provided by TPEx, attend GISA courses, and raise capital through the GISA capital raising platform. A GISA company may increase its visibility by disclosing information on TPEx GISA site.

Obligations: A GISA company should receive integrative counseling from TPEx prior to and after GISA registration. A GISA company must meet certain information disclosure requirements after GISA registration, including annual filing of shareholders meeting information, annual financial statements or a condensed balance sheet and condensed statement of comprehensive income, quarterly filing of raised capital utilization report and filing of material information as required by law.

4. Is a GISA company a public company after obtaining a stock code?

After a company completes capital raising and change of registration before registering on GISA, it can select a date for GISA registration. TPEx will assign a 4-digit stock code for a GISA company, which will be used later on when the company makes public offering, registers on Emerging Stock Board or becomes listed on TPEx (TWSE). However a GISA company is not necessarily a public company. It becomes a public company after it undertakes initial public offering and effective registration.

5. What should I do if I like to subscribe or trade GISA stocks?

Investors can only purchase shares of a GISA company through 「GISA capital raising system」, and because GISA company is not a public company, its stocks cannot be publicly traded according to law. Thus the GISA capital raising system does not offer trading function. Investors can inquire ongoing capital raising information of GISA companies by logging into the「 GISA capital raising system」through IE using a citizen digital certificate, Industry and Commerce Certificate (ICC), XCA IC Card or Financial Certificate. With regard to stock subscription and payment methods, please see 「Stock Purchase and Payment Policies」 on GISA site. If you have problem logging into the GISA capital raising system, please visit「FAQ section of GISA site」, or call 02-2366-6100 9:00 AM - 5:00PM, Monday through Friday.

D. Bond Market

1. How do retail investors buy and sell government bonds?

Retail investors (i.e. small investors) can buy government bonds through the following channels:

( I ) Place a subscription order before the auction of government bond: To purchase government bonds in the amount of NT$1.5 million or less, an investor may place a subscription order at a post office designated by Chunghwa Post or a securities broker designated by Taiwan Stock Exchange. The purchasing unit is NT$100,000, and the price is calculated based on the highest rate offered by successful bidders for the government bond series.

( II )Buy and sell government bonds directly from and to Chunghwa Post: A small investor should bring postal passbook or postal giro savings account information to a post office and fill out a “Book-Entry Central Government Bond Account Opening Application” and a “Book-Entry Central Government Bond Signature Card” in duplicates to obtain a book-entry government bond passbook. All government bonds bought and sold later on by the investor will be posted on the passbook.

(III) Buy and sell government bonds directly from and to a bond dealer: A small investor should open a book-entry central government bond account at a clearing bank, and bring the account information to a bond dealer and provide the dealer with a photocopy of his or her national ID card or registration certificate to conduct OTC trade of government bonds with the dealer.

The list of bond dealers is available on TPEx website. http://www.tpex.org.tw/web/bond/service/trader/bonds_trading.php?l=zh-tw

2. How do retail investors buy and sell international bonds, corporate bonds and financial debentures?

Retail investors can buy and sell international bonds, corporate bonds and financial debentures with bond dealers over the counter. It should be noted that some bonds may only be purchased by professional investors or have other restrictions as specified in the terms and conditions of the bonds.

The list of bond dealers is available on TPEx website. http://www.tpex.org.tw/web/bond/service/trader/bonds_trading.php?l=zh-tw

3. Where can I find the basic information of bonds?

To learn more about the basic information of an issued government bond, corporate bond, financial debenture, convertible (exchangeable) bond or international bond, investors can visit the「“Bonds” section of the Market Observation Post System」

Investors can inquire the basic information of registered foreign bonds on TPEx website (Home > Bond > Registered Foreign Bonds)

4. What is the definition of professional investor who may trade bonds on the professional board?

  • For International Bond and Straight Corporate Bond, professional investor refers to an investor that meets one of the following conditions prescribed in Taipei Exchange Rules Governing Management of Foreign Currency Denominated International Bonds:
    1. A qualified institutional investor set forth in Article 4, paragraph 2 of the Financial Consumer Protection Act.
    2. A juristic person or fund that meets each of the following requirements and has applied in writing to the securities firm for the status of professional investor:
    3. A. Its CPA-audited or reviewed financial report for the most recent period shows total assets in excess of NT$50 million. However, the financial reports of juristic persons outside of the ROC need not be CPA-audited or reviewed.

      B. The persons authorized by the investor to conduct trades possess adequate professional knowledge and trading experience with respect to bonds.

      C. The investor fully understands that the securities firm may be exempted from liability for bond trades conducted with a professional investor, and consents to sign for trades as a professional investor.

    4. A natural person who meets each of the following conditions and has applied in writing to the securities firm for the status of professional investor:
    5. A. Proof of financial resources of NT$30 million or more; or, a single trade in excess of NT$3 million combined with total investment assets at the given securities firm in excess of NT$15 million, along with provision of a written statement of financial resources declaring that the person has total assets of NT$30 million or more.

      B. The investor possesses adequate professional knowledge and trading experience with respect to bonds.

      C. The investor fully understands that the securities firm may be exempted from liability for bond trades conducted with a professional investor, and consents to sign for trades as a professional investor.

  • For Financial Debenture, professional investor refers to an investor that meets one of the following criteria prescribed in Regulations Governing Offshore Structured Products:
    1. A professional institutional investor, which includes domestic and foreign banks, insurance companies, bills finance companies, securities firms, fund management companies, government investment institutions, government funds, pension funds, mutual funds, unit trusts, securities investment trust enterprises, securities investment consulting enterprises, trust enterprises, futures commission merchants, futures service enterprises and other institutions approved by the FSC.
    2. A juristic person meeting all of the following criteria and having applied in writing to trust enterprises, securities firms and insurance enterprises (referred to as the "trustees or sub-distributors" hereunder) for the status of a high net worth corporate investor:
    3. A. A juristic person with net worth exceeding NT$20,000,000,000 according to its latest CPA-audited or reviewed financial report ; notwithstanding the foregoing, the financial reports of juristic persons outside of the Republic of China need not be CPA-audited or reviewed.

      B. The person has a dedicated investment unit, staffed by capable professionals and the unit’s manager meets one of the following conditions.

        1. The manager worked in financial product investment at a financial, securities, futures or insurance institution for more than three years.
        2. The manager has financial product investment experience of more than four years.
        3. The manager possesses other qualifications or experience that show he/she has financial product investment professional knowledge and management experience and can soundly and effectively manage the business of an investment department.

      C. The person holds securities position or derivatives product portfolio exceeding NT$1,000,000,000 according to its latest CPA-audited or reviewed financial report ; notwithstanding the foregoing, the financial reports of juristic persons outside of the Republic of China need not be CPA-audited or reviewed.

      D. The person’s internal control system has suitable investment procedure and risk management measures.

    4. A juristic person or fund with total assets exceeding NT$50,000,000 according to its latest CPA-audited or reviewed financial report; notwithstanding the foregoing, the financial reports of juristic persons outside of the Republic of China need not be CPA-audited or reviewed.
    5. A natural person meeting all of the following criteria and having applied in writing to the trustee or sub-distributor for the status of professional investor
    6. A. The person has proof of financial capacity of at least NT$30,000,000; or has made a foreign currency denominated investment equivalent to over NT$3,000,000 in value, and in addition, his/her total assets at the trustee or sub-distributor, including deposits and investments (including the aforesaid investment), worth more than NT$15,000,000, and the person has provided a statement undertaking that his or her total assets exceed NT$30,000,000;

      B. The person has sufficient professional knowledge or trading experience in financial products; and

      C. The person understands fully that a trustee or sub-distributor is exempted from certain responsibilities towards professional investors in conducting trust investment and agrees to sign on as a professional investor.

    7. A trust enterprise that has entered into a trust agreement with the trustor and the trustor meets the conditions set forth in Subparagraph 2, 3 or the preceding subparagraph hereof.

5. Are there credit rating requirements for international bonds, corporate bonds and financial debentures?

  • International Bond:
    There are no credit rating requirement for international bonds on the professional board. However for international bonds on the general board, the bond must be guaranteed by a financial institution inside the ROC or the issuer has a credit rating of BBB or higher and the bond itself must have a credit rating of BBB or higher.
  • Straight Corporate Bond:
    According to Taipei Exchange Rules Governing the Review of Securities for Trading on the TPEx, a public issuer that applies to trade straight corporate bonds on the TPEx must meet the following conditions, and in addition, must provide a credit rating report on the bonds from a credit rating agency approved or recognized by the competent authority:
    1. The bonds must be guaranteed by an ROC financial institution.
    2. The issuer must have provided a credit rating report on the issuer from a credit rating agency approved or recognized by the competent authority.
    3. The bonds are restricted for sale only to professional investors.
  • Financial Debenture:
    According to the provisions of Regulations Governing Issuance of Bank Debentures by Banks, when the subordinated Bank Debenture issued by a bank targets individual non-professional investors, the debentures shall be rated by a credit rating agency sanctioned by the competent authority. In other circumstances, either the issuing bank or the Bank Debenture shall be rated by a credit rating agency sanctioned by the competent authority, unless with the approval of the competent authority, the bank has reasonable explanations for not having such a credit rating.

6. Can convertible bonds issued by an emerging stock company be listed?

Pursuant to Article 31 of the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, when issuing convertible bonds, with the exception of TWSE or TPEx-listed companies for which an underwriter shall be engaged to underwrite all bonds issued on a firm commitment basis, the bonds may not be underwritten and offered to the public. Thus convertible bonds issued by an emerging stock company can be sold through private placement only, and their listing and sale in the open market are not allowed.

E. Derivatives Market (Including warrants, credit and equity derivatives)

1. Under what conditions a warrant liquidity provider is not required to give quotes?

According to the rule, a liquidity provider shall perform its quoting obligations by providing bid/ask quotes for the warrants issued. However a liquidity provider is not required to provide quotes in the following circumstances:

  1. During the initial 5 minutes after opening of the TPEx trading market.
  2. During any halt of trading of the underlyings of the warrants.
  3. When the quantity of warrants in the liquidity provider's segregated account cannot satisfy the minimum units required for a single ask quote, the liquidity provider may provide merely a bid quote.
  4. Within the 15 days before the expiration date of the warrant, the liquidity provider may provide merely a bid quote.
  5. Other conditions as set by the issuer at its own initiative:
    • When the underlying security reaches its limit-up, only bid (ask) quotes on call (put) warrants will be provided; when the underlying security reaches its limit-down, only ask (bid) quotes on call (put) warrants will be provided.
    • When the price of warrant reaches its limit up (down), only bid (ask) quote will be provided.
    • When a warrant is 30% or more in-the-money, only bid quotes will be provided.
    • When the theoretical value of a warrant is less than $0.01.
    • When the liquidity provider is faced with technical problem during normal operation.
    • When the warrant issuer is unable to hedge risks.

2. How to modify matched transactions in the TR system?

To modify data in the “Matched” field, the trader and the counterparty shall delete the reported data together and re-report the transaction data. To modify data in the “Not matched” field, a trader can make changes unilaterally using B--MODOTR without the need to delete the originally reported data together with the counterparty or re-report.

3. When a securities firm offers a derivative product, how to make sure whether it is required for the firm to register the product with TPEx or not?

If the product differs from products already registered with TPEx by a securities firm, such as different types of linked underlying assets (interest rate, bond, exchange rate, etc.) or different types of contracts (forward, swap, option, etc.), the securities firm shall file registration documents with the TPEx for record within 15 days after commencement of business. For details, refer to the fields of “Product value derived from” and “Type of contract” in the Product Description attached to “Attachment 2 - The Notification Form of Securities Firms Operating Over-The-Counter Derivatives.” For example, if a securities firm has registered with TPEx EUR/USD options and plans to offer USD/JPY options, there is no need for the firm to register the new product. But if it plans to offer USD/JPY forward, it will be required to register the new product with TPEx.

F. ETF & ETN Market

1. How do investors buy and sell ETN/ETF?

There are two ways for investors to buy and sell ETN/ETF. First, like buying and selling stocks, investors can use existing securities trading accounts to entrust securities brokers to place orders and settle them on the second business day after the closing date. Second, investors can apply to the issuing securities firm/ investment trust through the securities broker to buy or sell back ETN/ETF, just as the investor purchases the fund, but there is a certain restriction on the number of ETN/ETF if investors choose this way. Investor should read the ETN/ETF prospectus carefully.

2. Where can I find bond ETF related information?

( I ) To find the real time trading information of bond ETF traded on the TPEx, investors can visit TPEx website - 「ETF > Real Time Trading Information」 to find latest trading price, best bid/ask price, volume and estimated NAV.

( II )To find historical information of the trading volume and the number of bond ETF traded on the TPEx, investors can visit TPEx website - 「 ETF > Historical data 」 to find the daily, weekly, monthly or yearly trading volume and the number of ETF listed on TPEx.

(III) With regard to the daily prices (NAV) of bond ETFs, investors can go to Market Information System - 「Categories > ETF > Unit changes and net value of TPEx ETF」 , or the ETF section of the website of the ETF issuer.

(IV) With regard to the bond ETF shareholding of foreign & mainland area investors, investors can visit TPEx website -「ETF > Foreign & Mainland Area Investors' Trading and Shareholding.」

( V )With regard to the sizes of ETFs, investors can inquire under the ETF section of the issuer's website.

G. General questions and website usage questions

1. How do I report any unlawful activity on the TPEx market? Are there rewards for reporting? Do you have measures in place to protect informants?

  1. TPEx has established the Rules Governing Rewards for Reporting on Unlawful Activities on the Securities Market. For detailed clauses of the Rules, please go to TPEx website Home > Announcement & Law Inquiries > Law Inquiries > Law Source Retrieving System > Search Laws > Search Mode – By Name > Enter Rules Governing Rewards for Reporting on Unlawful Activities on the Securities Market.
  2. TPEx has a site Rewards for Reporting Unlawful Activities on the Securities Market that provides information on reporting channels, rewards as well as confidentiality and informant protection measures.ch of new investor protection measures。