Trading Safeguard
I. Price Stabilization Measures
Dynamic Price Banding
TAIFEX will check each new order (including limit orders, market orders and market with protection orders) and simulate a matched price based on the order book at the time. TAIFEX will reject buy (sell) orders with a simulated matched price above (below) the upper (lower) limit of TAIFEX’ dynamic price band.
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Price Limits Each product has different daily price limits:
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II. FCMs System Stabilization
Kill Switch
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Cancel on Disconnect When FCMs experience a disconnection, they are unable to modify orders already sent to the exchange until they reconnect. This could lead to unintended order matching and potential losses during periods of market fluctuations. The COD mechanism offers a solution by allowing the proprietary trading business of FCMs to choose the appropriate trading session based on their specific needs. If the TAIFEX detects an accidental disconnection of the proprietary trading business and certain conditions are met, the COD will be activated. It acts promptly to cancel all outstanding orders under the disconnected session, thereby reducing the risks associated with connection disruptions and minimizing potential losses. |
Cloud-based Backup Futures Auction Terminals In order to strengthen the backup mechanism for placing orders for FCMs, the TAIFEX sets up a cloud-based backup trading bidding terminal to reduce the trading interruption time for futures that FCMs cannot place orders due to force majeure factors, and provide FCMs with more various, convenient and timely service. For related application forms, please go to Home > Member Information > Forms of Trading and Clearing Application > Forms of Managing FCMs IP and User ID of the TAIFEX Cloud-based Backup Futures Auction Terminals Application Form (shall be submitted beforehand) Use of the TAIFEX''s Reserve Market Terminals Application Form (shall be submitted during the trading session on the day) |
Operating Procedures for Use of Backup Futures Trading Accounts When an FCM have a failure in its system due to a force majeure accident, it may use the supporting backup accounts opened at its head office, branch or another FCMs, and the supported FCM should fax “Futures Trading Backup Account Report Form” before using the backup accounts for trading. If the supported FCM stops using the supporting backup accounts, the clearing member supporting the FCM should fill in the "Supporting Backup Account Position Transfer Report Form" to TAIFEX. For more information, please go to Law Source Retrieving System of Stock Exchange and Futures Trading >Taiwan Futures Exchange Operating Procedures for Use of Backup Futures Trading Accounts Futures Trading Backup Account Report Form Supporting Backup Account Position Transfer Report Form |
TCP/IP TMP Network’s Drop Copy Service Taifex launched TMPDC Session to transfer order reply data (drop copies) of TMP, FIX4.4 and FIX4.2 Session. Brokers can get drop copies from TMPDC Session during Taifex Services time. Each TMPDC Session can map to a dedicated order Session. TCP/IP TMP Messaging Specifications |
III. System Anomalies in the Securities and Futures Market
Measures for Handling Malfunctions and Telecommunications Disruptions in Trading Systems or Trading Information Transmission Systems When the TAIFEX trading system or trading information transmission system experiences a malfunction or telecommunications disruption such that a futures contract is affected, the TAIFEX may announce a halt of trading in that contract according to related rules. After eliminating the malfunction, the TAIFEX may immediately announce resumption of trading for that futures contract according to related rules. For more information, please go to Law Source Retrieving System of Stock Exchange and Futures Trading > Taiwan Futures Exchange Corporation Measures for Handling Malfunctions and Telecommunications Disruptions in Trading Systems or Trading Information Transmission Systems |
Handling Measures in Response to Halts of Trading in Securities Markets The futures market launched relevant measures to avoid the computer malfunctions of the securities market affecting the operation of the futures market and in response to the implementation of the procedures for verification and disclosure of material information of the securities market. For more information, please go to Law Source Retrieving System of Stock Exchange and Futures Trading > Taiwan Futures Exchange Corporation Handling Measures in Response to Halts of Trading in Securities Markets |
IV. Handling Methods in Case of Force Majeure
Rules for Market Closing or Trading During Natural Disasters The rule for market closing or trading during natural disasters, please go to Law Source Retrieving System of Stock Exchange and Futures Trading > Taiwan Futures Exchange Corporation Provisions for Market Closing or Trading During Natural Disasters and on Election Days |
Adjustments of the Last Trading Day and the Last Settlement Day If there are force majeure events (such as typhoon) on the last trading day or the final settlement day, TAIFEX may adjust the last trading day or the final settlement day. For more information, please go to TOPIX Futures DJIA Futures, S&P 500 Futures and Nasdaq-100 Futures FTSE® 100 Index Futures Brent Crude Oil Futures |