TAI EXC Delays in Order Placement


On Mar. 26, TAI EXC amended rules to reduce order placement delay.


  • TAI EXC amended Directions for the full implementation of the book-entry transfer system in the centralized securities exchange market; Operation directions for the advance collection of funds and securities by securities brokers in brokerage trading.
  • In addition, Operational guidelines for omnibus trading accounts, aimed at reducing delays in order placement for overseas Chinese and foreigners in securities market.
  • Follows TAI DCC Mar. 2024 issued letter re securities prepayment vouchers, #203087.
  • Document dated Mar. 26, 2024, received from TAI EXC Mar. 28, summarized Mar. 29.
  • Amendments
  • Delays attributed to complexities in the current pre-collection mechanism, especially concerning time differences and cumbersome notification procedures with custodians.
  • Amendments enable custodians to hold funds along with securities as per client instructions, eliminating the need for transfer to the broker's settlement account.
  • Flexibility facilitated through third-party clearinghouse SMART operating system.
  • Securities brokers, custodians need to retain relevant information for audit purpose.
  • Effectiveness
  • The amendments are effective from May 1, 2024.
  • Mar. 29, 2024 TAI TPEX
  • On Mar. 29, 2024, TAI TPEX revised article 2, 7 of Operation directions for the advance collection of funds and securities by OTC securities brokers for the same reason above.
  • It also amended article 3 of TPEX Operational guidelines for omnibus trading accounts.
  • The amendments are effective from May 1, 2024.
  • Except for article 7 of the operation directions, which is effective from Mar. 29, 2024.

Regulators TAI EXC; TAI TPEX
Entity Types B/D; IA; OTC
Reference RF TPEX No. 11300567381, 3/29/2024; RF TWSE No. 1130005058, 3/26/2024; Lt FSC No. 1130333546, 3/21/2024;
Functions Compliance; Financial; Operations; Record Retention; Settlement; Trading; Treasury
Countries Taiwan
Category
State
Products Custody; Equity; Fund Mgt; Securities
Regions AP
Rule Type Final
Rule Date 3/26/2024
Effective Date 5/1/2024
Rule Id 206269
Linked to Rule :203087
Reg. Last Update 3/29/2024
Report Section International

Last substantive update on 04/04/2024