Block Trading System

The basic characteristics of block trading system are summarized below:
I. Non-paired Trade
II. Paired Trade
Comparison Table Between Non-paired Trade and Paired Trade

I. Non-paired Trade

  1. Term of Settlement
  2. The settlement date of a block trade is the second business day after the transaction date, same with the regular trading.

  3. Trading Period
  4. 9:00 am to 5:00 pm.

  5. Types of Mandate
  6. For non-paired trade and paired trade, trades for spot securities and sale of borrowed securities in block trading are acceptable, whereas neither day-trade for spot securities nor margin purchases or short sales for securities.

  7. Minimum Amount/Volume
    1. For a single security: at least 500 trading units, or more than NT$15 million;
    2. For a basket of stocks: at least 5 types of stocks and more than NT$15 million.
  8. Range of Prices
  9. Same with the regular trading.

  10. The price increment (up/down tick)
  11. For non-paired trade and paired trade, the price increment is NT$0.01.

  12. Matching Method by Continuous Auction
    1. For a single security:
      The time/price priority for matching shall be based on the following principles whenever a buying or selling order enters the system:
      Incoming buying (selling) orders whose prices are greater (less) than or equal to the lowest (highest) previously entered selling (buying) orders will be matched and executed at the individual ask (bid) prices sequentially from the lowest (highest) to the highest (lowest); if two or more quotes show identical ask (bid) prices, they will be matched and executed sequentially in chronological order until all buying (selling) orders are satisfied or until the price of the current incoming buying (selling) order is lower (higher) than the ask (bid) prices of unexecuted selling (buying) orders.
    2. For a basket of stocks:
      The stock codes, unit prices, and volumes of incoming buying (or selling) orders shall all be identical to those of the previously entered selling (or buying) orders; the orders are then executed with selling (or buying) orders sequentially in chronological order.
  13. Pre-Collection of Purchase Price /Securities
    1. A securities firm may decide at its own discretion whether or not to require the pre-collection in full or a certain percentage of the purchase price/securities depending on the circumstances.
    2. Where a securities firm accepts the mandate to quote sales of securities in block trades, such securities firm, whether to pre-check the investors’ position, shall conform to the article 79-1 of Operating rules of the Taiwan stock exchange corporation.
  14. Restrictions on the Amount of Orders Which a Securities Firm May Accept The amount of buying and selling orders shall be monitored and controlled along with the mandated buying and selling amount for regular trading session.
  15. Methods of Monitoring and Controlling the Amount Invested by Foreigners
    When monitoring and controlling regular trading session, where the quoted buying order is from a foreigner, the corresponding purchase amount shall be deducted from the amount which may be invested by foreigners, whereas where the quoted selling order is from a foreigner, the corresponding sale amount shall be added to the amount which may be invested by foreigners after the selling order is executed.
  16. Information Disclosure
    1. TWSE's MIS website will in real time post the range of the quoted ask or bid price of each individual order for non-paired trade and the most updated information on unexecuted and executed prices and trading volumes, which will be transmitted to the information vendors in real time.
    2. After 5:00pm, the trading volumes and executed prices will be included in the trading records of the then current day.
  17. Clearance and Settlement
  18. The settlement date of a block trade is the second business day after the transaction date, same with the regular trading

II. Paired Trade

  1. Method for Quoting
  2. In a paired trade, a buying order and a selling order of the same stock(s) with same volume in the same price may be quoted by the same securities firm or by a number of securities firms.

  3. Trading Period
  4. Pre-opening trading hours: 8:00 am to 8:30 am. 9:00 am to 5:00 pm.

  5. Minimum Amount/
    1. For a single security: at least 500 trading units, or more than NT$15 million;
    2. For a basket of stocks: at least 5 types of stocks and more than NT$15 million.
  6. Price Range
  7. Same with the regular trading

  8. Pre-Collection of Purchase Price/Securities Method
    1. A securities firm may decide at its own discretion whether to require the pre-collection in full or in a certain percentage of the purchase price/securities depending on the circumstances.
    2. Where a securities firm accepts the mandate to quote sales of securities in block trades, such securities firm, whether to pre-check the investors’ position, shall conform to the article 79-1 of TWSE business rule.
  9. Method for Matching
  10. Transactions shall be executed according to the term of volumes and prices quoted by the buyer and the seller.

  11. Restrictions on the Amount in Respect of Which a Securities Firm May Accept Orders
  12. To be monitored and controlled along with non-paired trade; provided that in the case of a paired trade under a buying order and a selling order of the same stock(s) with same volume in the same price, which will be settled at the same securities firm and the net amount of buying and selling orders is zero, such mandated buying and selling amount shall not be subject to monitoring and control as pertaining to the amount in respect of which the securities firm may accept orders.

  13. Method of Monitoring and Controlling the Amount to be Invested by Foreigners
  14. Where buying and selling securities firms complete a quoted paired trade, the basis for calculation shall be the net volume of such buying and selling by foreigners quoted by the securities firms, and the net buying volume shall be deducted from the amount which may be invested by foreigners, whereas if such paired trade is completed, the net selling volume shall be added to the amount which may be invested by foreigners.

  15. Disclosure of Trading Information
    1. After a transaction is completed, TWSE's MIS website will in real time post the information on executed prices and trading volumes, which will be transmitted to information vendors by way of making public announcements on the market. Trading price data from this pre-opening session(8:00 am - 8:30am) will be disclosed after 9:00 am.
    2. After 5:00pm, the trading volumes and executed prices will be included in the trading records of the then current day.
  16. Clearance and Settlement
  17. The settlement shall be conducted in combination with non-paired trade.

Comparison Table Between Non-paired Trade and Paired Trade

Items
Non-paired Trade
Paired Trade
Trading Period 9:00am to 5:00pm
In case of settlement on T Day, the quote shall be completed by 1:50pm.
  1. Pre-opening trading hours: 8:00am to 8:30am
  2. 9:00am to 5:00pm
In case of settlement on T Day, the quote shall be completed by 1:50pm.
Method for Quoting
  1. It is optional for investors to conduct settlement on T Day or T+2 Days.
  2. Where a securities firm accepts the mandate to quote sales of securities in block trades, such securities firm, whether to pre-check the investors’ position, shall conform to the article 79-1 of Operating rules of the Taiwan stock exchange corporation.
  1. It is optional for investors to conduct settlement on T Day or T+2 Days.
  2. Where a securities firm accepts the mandate to quote sales of securities in block trades, such securities firm, whether to pre-check the investors’ position, shall conform to the article 79-1 of Operating rules of the Taiwan stock exchange corporation.
Minimum Amount/Volume
  1. For a single security: at least 500 trading units or more than NT$15 million.
  2. For a basket of stocks: at least 5 types of stocks and more than NT$15 million.
  1. For a single security: at least 500 trading units or more than NT$15 million.
  2. For a basket of stocks: at least 5 types of stocks and more than NT$15 million.
Range of Quoted Prices Same with the regular trading
(Within 10% of the "auction reference price at market opening of the regular trading session for the then current day.)
Same with the regular trading
(Within 10% of the "auction reference price at market opening of the regular trading session for the then current day.)
Types of Mandate
  1. Trades for spot securities and sale of borrowed securities are acceptable.
  2. Daily offsetting, margin purchases or short sales for securities are not permissible.
  1. Trades for spot securities and sale of borrowed securities are acceptable.
  2. Daily offsetting, margin purchases or short sales for securities are not permissible.
Principles for Mandate and Matching
  1. Orders will be executed on continuous auction in real time.
  2. A block trade of a basket of stocks will be executed only when the types of stocks, unit prices and volumes of the stocks at a buying order and a selling order are identical.
  3. An order will be valid only during the trading period when the order is placed.
To be executed according to the term of volumes and prices quoted by the buyer and the seller.
Information Disclosure
  1. TWSE's MIS website will in real time post information on the range of quoted bid and ask prices, and the unexecuted prices and executed prices and trading volumes.
  2. TWSE will in real time transmit the information on the executed prices and trading volumes to the information vendors by way of making public announcements on the market.
  3. After 5:00pm, the trading volumes and executed prices will be included in the trading records of the then current day.
  1. Trading price data from this pre-opening session(8:00 am – 8:30am) will be disclosed after 9:00 am.
  2. Except that the unexecuted prices and volumes will not be posted, the measures are the same as those for non-paired trade.
Clearance and Settlement T+2 T+2
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