Taiwan Stock Exchange - Rules & Regulations Directory

Article NO. Content

Title:

Operating Rules for Securities Firms Handling Margin Purchases and Short Sales of Securities 

Amended Date: 2019.02.12 
Categories: Securities Exchange Market > Margin Transaction
Article 50
    A securities firm providing a margin loan to a customer shall do so and perform settlement on behalf of the customer based on the amount of the margin loan as calculated by multiplying the trade price of the margin purchase by a required percentage (with any amount less than NT$1,000 excluded from calculation); all securities bought on margin shall serve as collateral.
    A securities firm lending a security to a customer for short selling shall do so and perform settlement on behalf of the customer based on the type and quantity of the security sold short in that trade; the proceeds from the short sale conducted by the customer with securities provided by the securities firm acquired through margin purchase shall serve as collateral after deducting the securities transaction tax, the short sale handling fee, and the securities firm handling fee; proceeds from the short sale conducted by the customer with Borrowed Securities or Proprietary Securities shall serve as collateral after deducting the securities transaction tax and securities firm handling fee.
    A securities firm borrowing securities from a securities firm or securities finance enterprise conducting money lending in connection with securities business shall deposit a performance bond with the TWSE in accordance with the Regulations Governing the Performance Bond for the Lending of Securities by Securities Firms and Securities Finance Enterprises.

Interpretation:

Data Source:Taiwan Stock Exchange - Rules & Regulations Directory
twse-regulation.twse.com.tw