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Article NO. Content

Title:

Operation Directions for the Calculation of the Number of Shares of Margin Buyers for the Purposes of Share Transfers Upon Special Shareholders Meetings  CH

Amended Date: 2017.03.28 
Categories: Securities Exchange Market > Margin Transaction
2     These Operation Directions shall apply when a TWSE listed or TPEx listed company completes settlement and securities transfer by the business day (inclusive) preceding the date (the book closure date) when, in accordance with Article 165 of the Company Act, entries in its shareholders' roster shall not be altered prior to the convening date of a special shareholders' meeting. Balance of each transaction shall be calculated based on the balance of the respective calculation record date. The terms used in these Operation Directions are defined, and the record date is determined, as follows:
  1. Balance of each transaction: balance of transaction as defined below shall be calculated based on changes in the balance of the segregated account for margin purchases and short sales.
    1. Margin loan balance shall mean the collateral balance for a margin purchase.
    2. Balance of short sales shall mean the unsettled balances for short sales.
    3. Balance of proprietary securities shall mean the remaining balance of the securities which is transferred as the source of securities from one's own account to a dedicated account for margin purchases and short sales.
    4. Balance of borrowing securities shall mean the remaining balance of the securities which is transferred from the Stock Exchange securities lending center, a dedicated account for securities borrowing and lending, and a dedicated account for securities borrowing and lending of a securities firm or securities finance enterprise engaging in securities borrowing and lending business, as the source of securities, to a dedicated account for margin purchases and short sales.
    5. Balance of lending securities shall mean the remaining balance of the securities which is transferred from a dedicated account for margin purchases and short sales, lent by the Stock Exchange securities lending center, lent to a securities firm or securities finance enterprise engaging in securities borrowing and lending business, and lent for participation in lending auction and lending negotiation, as the source of securities, to a dedicated account for securities borrowing and lending.
    6. Balance of securities in the dedicated account for securities borrowing and lending shall mean the balance of securities transferred from a dedicated account for margin purchases and short sales that remain unborrowed.
    7. Balance for refinancing of funds shall mean the balance of the collateral for refinancing of funds by a securities finance enterprise to a securities firm
    8. Balance for refinancing of securities shall mean the balance of the securities for short sales and borrowing by a securities finance enterprise to a securities firm, which can be categorized in terms of functions into balance available for settlement and that for return.
  2. For the purpose of verifying the basis for calculating the balance of transaction prescribed in the preceding paragraph, the record date is set forth as follows:
    1. The third business day prior to the book closure date shall be deemed the calculation record date for margin loan balance, balance of short sales, balance for refinancing of funds and balance for refinancing of securities for settlement, and shall apply to transactions completed by the record date (inclusive) or the business day (inclusive) preceding the book closure date.
    2. The business day preceding the book closure date shall be deemed the calculation record date for balance for refinancing of securities for return, balance of proprietary securities, balance of borrowing securities, balance of lending securities and balance of securities in the dedicated account for securities borrowing and lending, and shall apply to transactions completed or securities transferred by the record date (inclusive). A securities finance enterprise and securities firm shall verify on its own by the business day (inclusive) preceding the book closure date whether or not the securities have been transferred.