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79-1
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When accepting sell orders for normal settlement in brokerage trading, a securities broker shall confirm that the volume of securities in the orders do not exceed the principal's custodial book-entry account balance, provided that this rule does not apply in any of the circumstances listed below:
- Settlement is handled by a custodian institution on behalf of the securities broker.
- Brokerage orders to sell securities short.
- Brokerage orders to sell securities to settle a margin purchase.
- Brokerage orders to sell securities that had been deposited as collateral for a margin trade that has already been liquidated.
- Brokerage orders to sell collateral that had been provided for borrowing of funds or for settlement financing.
- Brokerage orders to sell collateral that is eligible to be withdrawn in securities borrowing and lending.
- Brokerage orders to sell securities in special accounts set up for the handling of events of default.
- Brokerage orders to sell securities lent on the previous business day pursuant to Chapter 3 of the TWSE Securities Borrowing and Lending Rules.
- Brokerage orders to sell securities lent pursuant to the TWSE Securities Borrowing and Lending Rules, where the securities borrower has been notified to return the securities by the sale settlement date.
- Brokerage orders to sell securities the borrowing of which has been confirmed but that have not yet been remitted in.
- Brokerage orders to sell securities under pledge that are being disposed by the pledge.
- Brokerage orders to sell securities for which applications for exercise of call warrants were made on the previous business day, and for which the issuer has confirmed that the exercise will be implemented by means of delivery of the securities.
- Brokerage orders to sell ETF beneficial certificates or baskets of stocks evidenced by beneficial certificates, pursuant to Article 12 of the TWSE Rules Governing Trading of Beneficial Certificates.
- Brokerage orders to sell securities bought on the previous business day.
- Brokerage orders to sell securities pursuant to the Operational Rules Governing Day Trades of Securities.
- Brokerage orders to sell securities that are loaned and returned prior to the settlement date of their sale pursuant to the Operational Rules Governing Day Trades of Securities.
- Other exempted circumstances as announced by the TWSE.
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