On May 24, TAI EXC amended rules to reduce operational costs.
TAI EXC amended Regulations governing brokerage contracts of securities brokers and Operating rules of the Taiwan Stock Exchange Corporation, to reduce operational costs.
Document dated May 24, 2024, received from TAI EXC May 27, summarized May 29.
Amendments
Securities firms can agree with custodians to settle securities transactions on the same day based on net amount offsetting, without individual account payments.
Custodians must exclude delivery payments from net amounts received, paid by the securities firm if there are transaction errors or delays; handling follows existing rules.
Effectiveness
The amendments are effective from Dec. 2, 2024.
May 31, 2024 TAI TPEX Notice
On May 31, 2024, TAI TPEX amended article 82 of Rules governing securities trading on the TPEX, item 5 of Account opening agreement for securities trading on the TPEX.
Aimed at reducing transaction costs and improving market liquidity efficiency.
Securities firms can now settle same-day securities trading funds with custodians based on netting of total purchases and sales of clients, instead of per client account.
For clients of the same securities firm and custodian, their total purchase and sale amounts can be netted for funds settlement between the securities firm and custodian.
For clients with errors or delays in settlements, the custodian must exclude their settlement funds from the net collection/payment amount to the securities firm.
Amendments are effective from Dec. 2, 2024.
Jun. 2024 TAI EXC Press Release
On Jun. 5, 2024, TAI EXC said securities firms, custodian institutions can conduct net settlement of buy and sell transactions; aims to streamline operational processes.
Custodian institutions only need to make one transfer per securities firm; adoption of new measure is subject to agreement between securities firms, custodian institutions.
