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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： Operating Rules for Securities Firms Handling Margin Purchases and Short Sales of Securities(2011.01.26)
Date：
Article 31 A customer applying to settle a margin purchase with cash or a short sale with spot securities shall deliver the money or securities by 12 noon of the current day, and shall fill out an Application to Settle a Margin Purchase with Cash or Application to Settle a Short Sale with Spot Securities and submit the application to the securities firm. Upon verification of the accuracy of the content, the securities firm shall deliver the short sale proceeds and short sale margin to the customer by the second following business day, or in the case of securities bought on margin or securities deposited as collateral, where the customer has maintained a depository account, transfer the securities to the account by the second following business day, or in the case of withdrawal of spot securities by the customer, deliver the securities by the third following business day.
Except under any of the following circumstances, the customer may not apply to use third-party securities as spot securities to settle a short sale:
1. during a period in which trading has been suspended or halted in the underlying securities of the short sale.
2. where an order for margin purchase has been placed to cover the short sale at a price of seven percent above the auction reference price at market opening on the TWSE or the basis price for the opening of trading on the GTSM on the same day and cannot be executed before the start of the trading session of the sixth business day prior to the book closure date of the underlying securities.
During a period when the central securities depository postpones processing of participants' withdrawal of securities, a securities firm may postpone delivering to a customer any securities deliverable as a result of the customer's application to settle a margin purchase with cash.
Where a customer withdraws spot securities, the securities firm shall additionally stamp the words "SETTLEMENT OF MARGIN PURCHASE WITH CASH" or "RETURN OF SECURITIES DEPOSITED AS COLLATERAL," as the case may be, on the Share Transfer Application Form and the trade report of the original margin purchase.