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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(2014.02.06)
Date：
Article 35-2     When the TWSE or GTSM has ratified and publicly announced the delisting from the stock exchange or termination of GTSM trading of a security eligible for margin purchase and short sale transactions, a securities firm shall notify customers to cover and close out any margin purchases or short sales of such security by repaying the margin loans or returning the borrowed securities by the tenth business day before the delisting or the termination of GTSM trading. If a customer fails to cover and close out any margin purchase or short sale by repaying the margin loan or returning the borrowed security within the deadline, the securities firm may, within the scope of satisfying the obligation, apply the provisions of Article 39, paragraph 3 to dispose of the balance in the customer's margin account beginning from the next business day. However, these provisions shall not apply under any of the following circumstances:
  1. The issuing company has applied for conversion of its GTSM listed securities to TWSE listed securities.
  2. The securities of a TWSE or GTSM listed company are delisted due to the company's merger, and the surviving company uses the securities which are eligible for margin purchase and short sale transactions for payment of all or part of the consideration to shareholders of the non-surviving company.
  3. The securities of a TWSE or GTSM listed company are delisted due to a share conversion, and the shares after conversion are still eligible for margin purchase and short sale transactions.
or where securities of both the surviving and non-surviving TWSE or GTSM listed companies in a merger are eligible for margin purchase and short sale transactions.