TWSE to Launch New Measures for Omnibus Trading Account

Taipei, May 19, 2009 (CENS)--The Taiwan Stock Exchange (TWSE) recently announced that three new measures related to omnibus trading accounts (OTAs) will be effective from May 25, 2009, with such measures to allow investors to trade through OTAs more easily and conveniently.

Normally a group of investors authorizes their trustees (authorized traders) to manage investments on their behalf, such as foreign fund managers in charge of investments on behalf of subsidiaries. Authorized traders can conduct investors' trades through OTAs and designate average price to each investor for settlement. To better meet the practice of authorized traders, the following three new measures will be implemented:

Authorized traders usually combine investors' odd shares into whole lots, trading them through an OTA. After market closes, brokers report odd shares traded as instructed by authorized traders to TWSE for settlement. Before only whole lots of shares can be traded, so brokers usually report failed trades or borrow the securities for settlement. With the new measure, authorized traders can divide round lots into odd lots for trading and settlement.

Block trading can be conducted through OTAs. When large amount of securities are traded through OTAs, brokers are required to split it into several orders for the volume of each order cannot exceed 499 trading units. Under the new measure, brokers will only need to place an order of a block trade without affecting stock prices. Besides, individual trades need not meet the minimum block trade size, only the trade of an OTA.

If an authorized trader wants to trade through an OTA, but places the order through a personal account by mistake, the transaction will be allowed to be combined via the OTA to achieve the average price.