Under the GTSM trading system, stocks may be traded via over-the-counter negotiation or via GTSM automated trade matching system which has the following features:

A. The automated trade matching system was developed with the computer facilities of Taiwan Stock Exchange. The system matches orders and reports executed trades instantly to enhance the trading efficiency.

B. The disclosure of stock quotes is highly transparent on GTSM. The GTSM system also discloses the volumes of best asks and bids without being subject to the two up/down tick rule.

A. Over-the-counter negotiation: (GTSM Rules ¡±71)
Over-the-counter negotiation is allowed for the following trades:
1. Trading between securities dealers.
2. Trading between a securities dealer and an investor involving 100,000 shares in one transaction.
3. Trading between a broker and a dealer where the broker buys stocks from the dealer via its out-trade or settlement default account.

B. Automated trade matching system:
Under the automated trade matching system, orders placed by brokers and dealers are matched automatically by the unit of 1,000 shares, and each order is limited to the volume of 500,000 shares. The automated trade matching system operates in the same manner as the trading system of Taiwan Stock Exchange where the dealer or the broker inputs the volume and price of stock to be bought or sold into the order book and the order is matched by the automated trade matching system.

C. Odd-lot trading system:
Orders involving volume of 999 shares or less are also matched by computer.

A. Over-the-counter negotiation: Monday ~ Friday, 9:00 ~ 15:00.

B. Automated Trade Matching System: Monday ~ Friday, 9:00 ~ 13:30.

C. Odd-lot Trading System: Monday ~ Friday, 1:40 ~ 2:30PM. Transactions shall be completed on the day of the bid.

A. Over-the-counter negotiation: The transaction price is the price agreed between the buyer and the seller, which however shall not exceed the daily price limits of the reference price.

B. Automated Trade Matching System:

Subject to the daily price limits of the reference price, the transaction price is determined by the following principles:
1. Pre-opening session (8:30 ~ 09:00): The bid quotes higher than the transaction price and the ask quotes lower than the transaction price must be fully filled.

2. Regular trading session (after 09:00): Orders, including the ones not filled in the pre-opening session, are matched one-by-one at the most reasonable price.

3. Odd-Lot Trading System: Subject to the limits of „b7% of the opening reference price of the day during regular trading session, the transaction price of odd-lot shares is the price that enables the largest number of orders to be executed. The daily price limits however do not apply to newly listed stocks in the first five days of trading for both regular trading and odd-lot trading.

Securities transaction tax is levied on sellers at 0.3% of the value traded. Brokerage commission is subject to a maximum of 0.1425% of the traded value, whereas no commission may be charged for transactions taken place over-the-counter by negotiation.

All stock transactions are settled by book-entry transfer and the settlement is completed on the next business day following the date of transaction.

Margin trading of GTSM stocks was launched on January 5, 1999, and day offset of margin purchase and short selling was implemented on November 14, 2005.

With the number of listed stocks on the rise, investors are expected to become more interested in individual stocks than in the market index. The need to understand the cyclic change of a specific industry and the prospect of a specific stock undoubtedly becomes a new challenge for investors. Although investment information is more readily accessible and available on the web, financial magazines, and TV, investors still need to keep abreast of the viable and updated information and prudently select target stocks. With the implementation of margin trading on GTSM, the market is expected to attract more funds as investors anticipates improved liquidity that will reasonably adjust the stock prices. But investors must understand that in a ¡§high risk and high return¡¨ market, it is vital to be diligent in collecting and analyzing information on the fundamentals of a specific stock or a specific industry. As the majority of GTSM-listed companies are in growing stage, investors are advised to buy stocks with their own funds and pick stocks for medium- or long-term investment and avoid over-expansion of personal credit. By investing wisely in GTSM stocks, investors not only creates personal wealth but also supports growing small and medium-sized businesses, which is tantamount to helping strengthen the power of the nation.