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.
