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Amendments

Title：

Operating Rules for Securities Firms Handling Margin Purchases and Short Sales of Securities  CH

Amended Date： 2023.12.28 (Articles 8, 13, 20, 57, 78 amended,English version coming soon)
Current English version amended on 2023.08.17 
Categories： Securities Exchange Market > Margin Transaction
Article Content Chapter Content Search Article No. Search Legal Basis Subordinate Legislation Amended Article Legislative History Chinese

Title： Operational Regulations for Securities Firms Handling Margin Purchases and Short Sales of Securities(2005.11.02)
Date：
Article 19 Upon execution of a margin purchase or short sale trade, the securities firm shall, by 12 noon on the first business day after the trade date, collect from the customer a margin for the margin purchase, based on the balance of the price of the margin purchase trade less the dollar amount of the margin loan, or a short-selling margin, based on the price of the short sale trade multiplied by a required percentage (any amount less than NT$100 shall be calculated as NT$100).
When the same type of stock exchange-listed or OTC-listed securities are bought on margin and sold short in the same account on the same day, if the customer has signed a consent letter with the securities firm, for portions of equal volume, settlement may be made for the balance after netting (offsetting) the "margin purchase repayment" and "short sale repayment," and the securities firm shall complete an Application to Repay Margin Purchases with Cash and An Application to Repay Short Sales with Spot Securities on behalf of the customer; the provisions of Article 31 shall not apply.
If a customer who has already signed a consent letter under the preceding paragraph does not wish to carry out netting settlement under the preceding paragraph, the customer shall provide a written explanation to the securities firm before close of market on the day on which the trades are executed.
Interest for margin purchases or short sales shall not accrue on portions that are offset as set out in paragraph [2]; short sales handling fees will accrue however.
The customer shall continue to include any portions that are offset as set out in paragraph [2] when calculating the respective limits on margin purchases and short sales for the given day, and is prohibited from calculating merely the net amount remaining after offsetting and using it as a revolving line on the given day.