Taishin Securities has put the estimated value of its trading error at NT$1.7 billion, with more than 9,000 erroneous transactions tied to two separate system incidents in April. The figure sets a record for Taiwan equities trading errors and is far above the roughly NT$100 million that had been discussed in the early stage of the incident. The brokerage said it will fully absorb losses caused by reversal offsets linked to the mistaken trades.
Two system failures hit in April
According to the company’s statement, an abnormality in the order reporting and trade reporting system occurred on April 14. Taishin said it activated emergency procedures the same day and completed urgent repairs, with the system returning to normal operation at 12:17 p.m. Most core functions on the trading platform have now resumed, though some scheduled fixed-amount investment features are still being adjusted and will be restored later.
The latest disclosure shows this was not a one-off issue. Taishin Securities said system abnormalities occurred on both April 7 and April 14. The earlier problem mainly affected inquiry functions, while the second incident spread into the order placement system, widening the scope of impact.
Broker says affected clients will be handled under favorable terms
Taishin issued another four-point apology and said it is helping affected clients verify their trades. The firm stated that it will handle the matter in the way most favorable to clients and ensure that customer rights are not harmed. Its rough estimate puts the number of reported error entries at about 9,000. Any losses generated through reversal processing of the mistaken trades will be covered in full by the company.
The brokerage also said it will cooperate fully with regulatory reviews, examine the cause of the system failure, and make improvements while taking responsibility for maintaining investor protection and market order.
Authorities are still checking transactions one by one
Huang Hou-ming, deputy director-general of the Securities and Futures Bureau under Taiwan’s financial regulator, said Taishin Securities is still reconciling the incident with clients on a transaction-by-transaction basis and that the case still requires clarification. That means the NT$1.7 billion figure remains an estimate while the verification process continues.
The report said outside observers linked the issue to Taishin Securities’ post-merger switch to Yuanta? No, the source states it adopted the middle- and back-office system of Grand Fortune Securities after its merger with the firm. It added that a heavy wave of Taishin clients entered the system to make inquiries during the early integration period, and large trading volume put pressure on system stability. The April 7 disruption mainly hit inquiry functions, while the April 14 incident reached the order system.