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Article NO. Content


Regulations Governing Securities Borrowing and Lending by Securities Firms  CH

Amended Date: 2015.11.02 
Article 14     Cash collateral that a securities firm receives in a securities lending transaction may not be used for purposes other than the following:
  1. As collateral to borrow securities from the securities lending system of a securities exchange.
  2. As collateral to refinance securities from a securities finance enterprise.
  3. As a source of funds for conducting securities margin purchase and short sale business.
  4. As a source of funds for conducting securities business money lending.
  5. For bank deposits.
  6. To purchase short-term bills.
    A securities firm shall pay interest on the money it receives from a customer under the preceding paragraph, at a rate agreed between the two parties.