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Article 24
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Where in a regulatory report on the execution of a negotiated transaction the securities book-entry transfer date is specified as the next business day following the report filing date, if a circumstance arises that the borrower needs to sell the borrowed securities before they are transferred to its CSD account, it may only do so though the authorized securities firm that has submitted on its behalf the regulatory filing reporting the execution of the borrowing transaction.
If after the borrower under the preceding paragraph has executed the securities sale transaction the transfer of securities for the negotiated transaction fails to be completed by the due date, making the borrower unable to satisfy its delivery obligation with the securities firm handling the sell order, the TWSE will, depending on which party is held responsible for such failure, halt or terminate the lender's or borrower's participation in securities borrowing and lending transactions, or otherwise announce an event of default on the part of the lender or borrower.
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