Chapter II Management of Margin Accounts for Margin Purchases and Short Sales
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Section 1 Securities eligible for margin purchases and short sales
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| Article 8 | TWSE-listed ordinary shares other than those listed on the Taiwan Innovation Board, primary listed on the Taiwan Innovation Board will be announced by the TWSE as eligible for margin purchases and short sales if satisfying the criteria below:
- The shares have been listed for at least six months.
- The net asset value per share at least reaches the par value, as specified in the latest financial report as at the date of review. Where the shares are of a primary TWSE-listed company with no par value or the net asset value per share is not NT$10, the financial reports published and filed in the last fiscal year show no accumulated losses.
- None of the following applies:
- Excessively intense share price volatility.
- Excessively concentrated equity ownership.
- Excessively irregular trade volume.
With the exception of TPEx-listed managed stocks and stocks registered on the Emerging Stock Board, all TPEx listed common stock shares satisfying the criteria below will be announced by the TPEx as eligible for margin purchase and short sale.
- The shares have been listed on the TPEx for at least six months.
- The net asset value per share at least reaches the par value, as specified in the latest financial report as at the date of review. Where the shares are of a primary TWSE-listed company with no par value or the net asset value per share is not NT$10, the financial reports published and filed in the last fiscal year show no accumulated losses.
- The company has been incorporated and registered for at least three years. If the issuer is a transferee company of a demerger from a TWSE or TPEx listed company, the time of incorporation may be calculated from the time of establishment of the demerged division as shown in the financial data of the demerged parent company. If the issuer is an investment holding company or financial holding company, the time of incorporation may be calculated from the time of incorporation of its operating entity.
- The company has a paid-up capital of NT$300 million or more, or a net worth of NT$600 million or more if it is a primary TPEx listed company whose shares have no par value or a par value other than NT$10 per share.
- Profitability of the company:
- Having had no accumulated losses, and had net operating income and profit before tax totaling 3% or more of paid-up capital on a standalone or consolidated basis, in the latest financial year, provided the above provision on net operating income and profit before tax may be waived if the paid-in capital reaches NT$600 million or more.
- It is a primary TPEx listed company whose shares have no par value or a par value other than NT$10 per share, had net operating income and profit before tax totaling 3% or more of shareholders' equity on a standalone or consolidated basis.
- None of the circumstances described in subparagraph 3 of the preceding paragraph applies.
For purposes of these Rules, the term "net worth" means equity attributable to owners of the parent as stated in the balance sheet.
The financial data mentioned in paragraph 2 are as specified in the latest published financial reports as having been audited and certified, or reviewed, by the CPA.
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| Article 9 | Taiwan depository receipts satisfying the criteria below will be announced by the TWSE as eligible for margin purchase and short sale:
- The receipts have been listed for at least six months.
- The latest annual consolidated financial reports which have been audited and certified by the CPA or biannual consolidate financial reports which have been reviewed by the CPA, as prepared according to the laws and regulations of the country concerned and available on the date of review, show no accumulated losses.
- The beneficial ownership is not excessively concentrated, or the circumstance in paragraph 1, subparagraph 3, item 1 or 3 of the preceding article does not apply.
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| Article 10 | Beneficial certificates satisfying the following criteria will be announced by the TWSE as eligible for margin purchase and short sale: having been listed for at least six months, not being traded in foreign currency, the beneficial ownership not being excessively concentrated, and the circumstance in Article 8, paragraph 1, subparagraph 3, item 1 or 3 not being applicable.
Beneficial certificates of securities investment trust exchange-traded funds ("ETF Beneficial Certificates") and beneficial certificates of futures trust exchange-traded funds will be announced by the TWSE or TPEx as eligible for margin purchase and short sale from the day their trading commences on the TWSE or TPEx. Offshore ETF Beneficial Certificates will be announced by the TWSE as eligible for margin purchase and short sale from the day their trading commences on the TWSE.
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| Article 11 | The date of review mentioned in Articles 8, 9, 12 and 19 denotes the last day of a six-month TWSE or TPEx listing period, or the following business day if falling on a non-business day.
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| Article 12 | The sampling period of excessively intense share price volatility or excessively irregular trade volume as mentioned in Article 8, paragraph 1, subparagraph 3, item 1 or 3 is 90 business days prior to the date of review (inclusive) for purposes of data gathering.
The business days mentioned in the preceding paragraph are the trading days of the particular security.
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| Article 13 | As samples for review purposes of TWSE listed securities to which excessively intense share price volatility or excessively irregular trade volume as mentioned in Article 8, paragraph 1, subparagraph 3, item 1 or 3 occurs, listed common shares, Taiwan depository receipts, and beneficial certificates other than those whose trading method has altered or those of a Taiwan Innovation Board listed company or Taiwan Innovation Board primary listed company are taken for comparison. As samples for review purposes of TPEx listed securities, TPEx listed common stock shares other than TPEx listed managed stocks and stocks registered on the Emerging Stock Board, and ETF Beneficial Certificates and beneficial certificates of futures trust exchange-traded funds are taken for comparison.
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| Article 14 | The share price volatility of TWSE or TPEx listed securities is deemed excessively intense as in Article 8, paragraph 1, subparagraph 3, item 1 under any of the following circumstances:
- The average of the daily price limit (absolute value) of the securities during the sampling period prescribed in Article 12 reaches at least the average of the daily price limit (absolute value) of the samples specified in the preceding article for the same period plus two standard deviations and exceeds 150% of the average of the daily price limit (absolute value) of the securities of the same industry in the same market.
- The ratio of the difference between the highest and lowest prices to the average price during the sampling period prescribed in Article 12 reaches at least the average of the ratio of the difference between the highest and lowest prices to the average price of the samples specified in the preceding article for the same period plus two standard deviations and exceeds 150% of the ratio of the difference between the highest and lowest prices to the average price of the securities of the same industry in the same market.
- Any of the following occurs in respect of the percentage premium or discount during the sampling period prescribed in Article 12 as calculated by the closing price of Taiwan depositary receipts and that of the exchange market of the country of the shares represented by such receipts:
- The percentage premium of Taiwan depositary receipts on the business day immediately preceding the date of public notice of the Market Observation Post System exceeds 50%, and the closing price of Taiwan depositary receipts of the same day must be the highest of the closing prices for the last six business days (inclusive of the sixth business day), or higher than the opening reference price in the absence of a closing price for the last five business days (excluding the fifth business day).
- The percentage premium of Taiwan depositary receipts on the business day immediately preceding the date of public notice of the Market Observation Post System exceeds 50%, and the closing price of Taiwan depositary receipts of the same day must be the lowest of the closing prices for the last six business days (inclusive of the sixth business day), or lower than the opening reference price in the absence of a closing price for the last five business days (excluding the fifth business day).
- If the proviso of item (1), subparagraph 5, paragraph 2, Article 8 applies to the TPEx-listed securities, where the TPEx has announced disposition measures in respect of the securities in accordance with Article 6 of the TPEx Operation Directions for Announcement or Notice of Attention to Trading Information and Dispositions in the past six months.
- Other circumstances where the share price volatility may be deemed excessively intense.
Any price change that is not attributed to a trade (such as ex-right, ex-dividend etc.) is disregarded during the period the standard in subparagraphs 1 and 3 of the preceding paragraph is being calculated or when the closing price standard is being compared over the last six business days (including the sixth business day) as mentioned in subparagraph 3 of the preceding paragraph, in respect of TWSE or TPEx listed securities.
For the comparison in subparagraphs 1 and 2 of paragraph 1 of this article, securities of the same industry in a different market (listed or OTC) may be compared if there are no securities of the same industry in the same market. The comparison requirement does not apply if there are no securities of the same industry in a different market or the TWSE or TPEx listed securities do not fall in any industry.
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| Article 15 | The trade volume of TWSE or TPEx listed securities is deemed excessively irregular as in Article 8, paragraph 1, subparagraph 3, item 3 under any of the following circumstances:
- The turnover of the securities in the sampling period specified in Article 12 is at least 10 times the average turnover of the samples for the same period as mentioned in Article 13.
- The turnover rate of the securities in the sampling period specified in Article 12 is lower than 10% of the average turnover rate of the samples for the same period as mentioned in Article 13, and the trading volume in said period is less than 3,000 share certificates or 3,000 units.
- If the proviso of item (1), subparagraph 5, paragraph 2, Article 8 applies to the TPEx-listed securities, their turnover rate in the sampling period specified in Article 12 reaches twice or more of the average turnover rate of securities of the same industry in the TPEx market in the same period; paragraph 3 of the preceding article will apply mutatis mutandis if there are no securities of the same industry in the TPEx market.
- Other circumstances where the trade volume may be deemed excessively irregular.
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| Article 16 | The equity ownership of TWSE or TPEx listed shares is deemed excessively concentrated as in Article 8, paragraph 1, subparagraph 3, item 2 under any of the following circumstances:
- The number of shareholders holding between 1,000 and 50,000 shares is less than 500.
- The number of registered shares held by all the directors, supervisors, officers, and shareholders with more than 10% shares accounts for at least 75% of the company's TWSE or TPEx listed shares when the total number of issued shares of the company is not more than 50 million, at least 80% of the company's TWSE or TPEx listed shares when the total number of issued shares of the company is over 50 million and not more than 500 million, and 85% of the company's TWSE or TPEx listed shares when the total number of issued shares of the company is over 500 million.
- The number of registered shareholders of TPEx listed shares is less than 1,000.
- Other circumstances where the equity ownership may be deemed excessively concentrated.
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| Article 17 | The beneficial ownership of Taiwan depository receipts is deemed excessively concentrated as in Article 9, subparagraph 3 under any of the following circumstances:
- The number of holders of Taiwan depository receipts holding between 1,000 and 50,000 units is less than 500.
- The sum total, as entered in the Taiwan depository receipts holder register, of units of Taiwan depository receipts held by those whose Taiwan depository receipts holding exceeds 5% of the total number of issued units exceeds 80% of the total issue amount.
- Other circumstances where the beneficial ownership may be deemed excessively concentrated.
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| Article 18 | The beneficial ownership of beneficial certificates is deemed excessively concentrated as in Article 10, paragraph 1 under any of the following circumstances:
- The number of beneficiaries holding not more than 100,000 beneficial units is less than 1,000.
- The number, as entered in the beneficiary register, of units of beneficial rights held by beneficiaries whose beneficial rights holding exceeds 5% of the total amount of the fund exceeds 80% of the total amount of the fund.
- Other circumstances where the beneficial ownership may be deemed excessively concentrated.
The preceding paragraph does not apply to ETF beneficial certificates, offshore ETF beneficial certificates, and futures ETF beneficial certificates.
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| Article 19 | For its review of the excessive concentration of equity or beneficial ownership mentioned in Articles 16 to 18, the TWSE or TPEx may request the TWSE or TPEx listed company, foreign issuer or securities investment trust enterprise ("SITE") to furnish information relevant to its equity or beneficial ownership of the review date.
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| Article 20 | The TWSE or TPEx will publicly announce TWSE or TPEx listed securities that conform to the following as eligible for margin purchases and short sales on the TWSE or TPEx listing date, unless the equity ownership of such securities is excessively concentrated. The relevant operating procedures are governed by Article 21, paragraph 2:
- The issuer of the TPEx listed shares that are eligible for margin purchases and short sales has applied for TWSE listing.
- The TWSE or TPEx listed company eligible to undertake margin purchases and short sales becomes a TWSE or TPEx listed financial holding company according to The Financial Holding Company Act.
- The TWSE or TPEx listed company eligible to undertake margin purchases and short sales becomes a TWSE or TPEx listed investment holding company through a 100% share exchange in accordance with the Business Mergers And Acquisitions Act.
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| Article 21 | The TWSE or TPEx will conduct another review on the last business day of each month in respect of securities where upon initial review the price fluctuation is found to be excessively volatile or the trade volume excessively irregular as in this section.
Where it is found upon initial review that the equity or beneficial ownership of securities is excessively concentrated as mentioned in this section, the TWSE or TPEx will not conduct another review until after the TWSE or TPEx listed company, foreign issuer or SITE furnishes information showing that the equity or beneficial ownership of securities is no longer excessively concentrated.
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Section 2 Suspension and resumption of margin purchases and short sales of securities
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| Article 22 | The TWSE or TPEx will suspend the margin purchases and short sales of TWSE or TPEx listed securities that are otherwise eligible for margin purchases and short sales, from the business day after the date of public announcement, if any of the circumstances in Article 4, paragraph 1, subparagraphs 1 to 7, and subparagraph 11, and Article 5, paragraph 1, subparagraphs 1 to 3, and subparagraph 7 applies, unless the trading method has altered or trading has been halted with respect to TWSE or TPEx listed shares and Taiwan depository receipts as in subparagraph 1 below, or trading of beneficial certificates has been halted, or the Surveillance Operations Oversight Committee of the TWSE or TPEx resolves on such suspension as in subparagraph 8 below:
- Where the trading method of TWSE or TPEx listed shares or Taiwan depository receipts alters, their trading is halted, or such shares or receipts are delisted from the TWSE or TPEx, or trading of beneficial certificates is halted or such certificates are delisted from the TWSE or TPEx, margin purchases and short sales of such securities will be suspended as of the effective date of the event upon the public announcement by the TWSE and TPEx of the alteration of the trading method of TWSE or TPEx listed shares or Taiwan depository receipts or halt of their trading or the halt of trading of beneficial certificates, with the suspension publicly announced concurrently; and upon the public announcement by the TWSE and TPEx of the TWSE and TPEx delisting of shares, Taiwan depository receipts and beneficial certificates, margin purchases and short sales of such securities will be suspended, with the suspension publicly announced concurrently. Notwithstanding, this does not apply where the trading is halted either under any of the circumstances in the proviso of Article 78 applies or due to a difference in rights and obligations between the securities stocks and new securities after share exchange.
- The TWSE or TPEx will immediately announce publicly the suspension of margin purchases and short sales of the beneficial certificates concerned, should a SITE fail to make a report and publish the financial reports of any of its securities investment trust funds on schedule as required or the circumstance in Article 96, paragraph 1 of the Securities Investment Trust and Consulting Act apply to the SITE managing the securities investment trust fund.
- The TWSE or TPEx will immediately announce publicly the suspension of margin purchases and short sales of the beneficial certificates concerned, should a futures trust enterprise fail to make a report and publish the financial reports of any of its futures trust funds on schedule as required or the circumstance in Article 38, paragraph 1 of the Regulations Governing Futures Trust Enterprises apply to the futures trust enterprise managing the exchange-traded futures trust fund.
- The TWSE or TPEx will publicly announce the suspension of margin purchases and short sales of TWSE or TPEx listed shares with a net asset value per share below par value if, on the fifth business day after the deadline to publish and file the annual financial reports and financial reports for the first, second and third quarters of each fiscal year, a review of the latest financial reports that are published and filed as required reveals that the net asset value per share is below par value or, in the event of a TWSE or TPEx primary listed company with no face value or in the event of a par value per share other than NT$10, the financial reports indicate accumulated losses.
- The TWSE or TPEx will publicly announce the suspension of margin purchases and short sales of Taiwan depository receipts where the foreign securities they represent suffer accumulated losses if, on the last business day of the third month after the deadline to make a public notice and to make a filing with the competent authority, TWSE or securities market as required by the laws and regulations of the country of the foreign issuer and the country of listing, the latest annual consolidated financial reports audited and certified by the CPA or biannual consolidated financial reports reviewed by the CPA indicate accumulated losses.
- The TWSE will publicly announce, on the following business day, the suspension of margin purchases and short sales of the Taiwan depository receipts where the number of listed units is less than 60 million after redemption.
- The TWSE will publicly announce, on the following business day, the suspension of margin purchases and short sales of the shares or Taiwan depository receipts where the cumulative reported amount of defaulting single-day trades of TWSE listed securities is at least NT$200 million, or the cumulative reported amount of defaulting single-day trades of TPEx listed shares is at least NT$50 million, and if the balance of margin purchases or short sales of the day in question is at least 15% of the number of such TWSE or TPEx shares or units.
- The TWSE or TPEx will immediately announce publicly the suspension of margin purchases and short sales of the securities concerned if the Surveillance Operations Oversight Committee of the TWSE or TPEx so resolves or such margin purchases and short sales are otherwise inappropriate in the circumstances.
- Margin purchases and short sales of futures ETF beneficial certificates to which the circumstance in Article 23, paragraph 1 of the TWSE Rules Governing Trading of Beneficial Certificates or Article 16, paragraph 1 of the TPEx Rules Governing Trading of Exchange-Traded Fund Beneficial Certificates occurs shall be halted from the next business day following the public announcement of the TWSE or TPEx.
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| Article 23 | The margin purchases and short sales of TWSE or TPEx listed securities which have been suspended pursuant to the preceding article will resume under the following circumstances from the business day following the date of public announcement, except where the trading method has altered or trading has halted under subparagraph 1 of the preceding article, in which event the margin purchases and short sales will resume from the date the trading method or trading resumes, or where the Surveillance Operations Oversight Committee of the TWSE or TPEx has resolved to suspend the margin purchases and short sales, in which event the margin purchases and short sales will resume from the time the disposition period ends:
- The TWSE or TPEx will immediately announce publicly the resumption of margin purchases and short sales upon the elimination of the cause for suspension under subparagraph 1, 2, 3 or 8 of the preceding article.
- If the circumstance in subparagraph 4 of the preceding article occurs, the TWSE or TPEx will immediately announce publicly the resumption of margin purchases and short sales if, on the fifth business day after the deadline to publish and file the annual financial reports and financial reports for the first, second and third quarters of each fiscal year, a review of the latest financial reports that are published and filed as required reveals that the net asset value per share has restored to par value or above or, in the event of a TWSE or TPEx primary listed company with no face value or in the event of a par value per share other than NT$10, the financial reports indicate no accumulated losses.
- If the circumstance in subparagraph 5 of the preceding article occurs, the TWSE will immediately announce publicly the resumption of margin purchases and short sales of the Taiwan depository receipts if, on the last business day of the third month after the deadline to make a public notice and to make a filing with the competent authority, TWSE or securities market as required by the laws and regulations of the country of the foreign issuer and the country of listing, a review by the TWSE of the latest annual consolidated financial reports audited and certified by the CPA or biannual consolidated financial reports reviewed by the CPA indicates no accumulated losses.
- If the circumstance in subparagraph 6 of the preceding article occurs, the TWSE will announce publicly on the following business day the resumption of margin purchases and short sales of the Taiwan depository receipts after the number of listed units restores to 60 million or above.
- If the circumstance in subparagraph 7 of the preceding article occurs, the TWSE or TPEx will announce publicly on the following business day the resumption of margin purchases and short sales when for six consecutive business days there has been no cumulative reported amount of defaulting single-day trades that is at least NT$10 million, and the balance of margin purchases or short sales of the last of the above six business days is under 15% of the number of such TWSE or TPEx shares or units.
- If the circumstance in Article 23, paragraph 2 of the TWSE Rules Governing Trading of Beneficial Certificates or Article 16, paragraph 2 of the TPEx Rules Governing Trading of Exchange-Traded Fund Beneficial Certificates occurs.
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| Article 24 | Where TWSE or TPEx securities are subject to suspension of margin purchases and short sales according to Article 22, subparagraph 4, the issuer may apply for resumption, with the latest financial reports that have been published and filed as required submitted. The TWSE or TPEx will make an announcement on the MIS and review the application on the fifth business day thereafter, and announce publicly the resumption of margin purchases and short sales from the following business day if the net asset value per share reaches the par value or above or, where the TWSE or TPEx primary listed company has no face value or the par value per share is not NT$10, there are no accumulated losses suffered.
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| Article 25 | Where margin purchases and short sales of Taiwan depository receipts are suspended pursuant to Article 22, subparagraph 5, the foreign issuer may apply for resumption, with the latest annual consolidated financial reports audited and certified by the CPA or biannual consolidated financial reports reviewed by the CPA submitted. The TWSE will then make an announcement on the MIS and review the application on the fifth business day thereafter, and announce publicly the resumption of margin purchases and short sales from the following business day if the review reveals no accumulated losses suffered.
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Section 3 Adjustment to the margin purchase leverage ratio and short sale margin |
| Article 26 | The TWSE or TPEx will review each day the prices and trade volumes of TWSE or TPEx securities eligible for margin purchase and short sale, and will reduce the margin purchase leverage ratio by 10% and raise the short sale margin by 10% on the following business day in the event of excessively intense share price volatility or excessively irregular trade volume for five consecutive business days or six out of the last ten business days, or in the event of excessively concentrated equity or beneficial ownership as disclosed by information relating to the equity of a TWSE or TPEx listed company or foreign issuer holding an ordinary shareholders' meeting or to the beneficial rights of a securities investment trust enterprise holding a fund beneficiaries meeting. Whether the above occurs contemporaneously or successively, the margin purchase leverage ratio will be reduced by 10% and the short sale margin raised by 10% only, upon such occurrence.
The preceding paragraph does not apply to ETF beneficial certificates, offshore ETF beneficial certificates, and futures ETF beneficial certificates.
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| Article 27 | The sampling period in regard to excessively intense share price volatility or excessively irregular trade volume as prescribed in the preceding article is 30 business days prior to the date of review (inclusive) for purposes of data gathering.
The business days in the preceding paragraph are calculated in accordance with Article 121, paragraph 2.
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| Article 28 | The scope of securities samples for excessively intense share price volatility or excessively irregular trade volume as mentioned in Article 26 is governed by Article 13 mutatis mutandis for purposes of comparison with underlying securities.
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| Article 29 | The excessively intense share price volatility mentioned in Article 26 is deemed to occur in respect of TWSE or TPEx securities that have a circumstance as described in Article 14, paragraph 1, subparagraphs 1 and 2, or a circumstance as described in paragraph 1, subparagraph 3 of the same article when compared to the securities samples mentioned in the preceding article during the sampling period under Article 27.
Provisions of paragraphs 2 and 4 of Article 14 shall apply mutatis mutandis where sampling period and comparisons of securities samples in the preceding paragraph are excluded.
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| Article 30 | The excessively irregular trade volume mentioned in Article 26 is deemed to occur in respect of TWSE or TPEx securities that, when compared to securities samples mentioned in Article 28 during the sampling period under Article 27, have a circumstance described in Article 15, paragraph 1, or the turnover of the securities is 10% lower than the average turnover of the securities sample during the same period and the trading volume in said period is less than 1,000 share certificates or 1,000 units.
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| Article 31 | The excessively concentrated equity or beneficial ownership mentioned in Article 26 is deemed to occur in respect of TWSE or TPEx securities that have a circumstance under Article 16, paragraphs 1 to 3, or in respect of Taiwan depository receipts that have a circumstance under Article 17, paragraphs 1 and 2, or under Article 18, paragraphs 1 and 2, or when the TWSE or TPEx listed company, foreign issuer or SITE fails to furnish information relevant to its equity or beneficial ownership to the TWSE or TPEx within 20 days after an ordinary shareholders' meeting or fund beneficiaries meeting.
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| Article 32 | In the event of irregularity in the redemption of Taiwan depository receipts, the TWSE may decide to reduce the margin purchase ratio by 20% and raise the margin percentage for short sale by 20% on the following business day. Where irregularities are serious, there may be multiple decreases of margin purchase ratio and increases of margin percentage for short sale.
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| Article 33 | For TWSE or TPEx securities eligible for margin purchase and short sale that have met the requirements under Article 6, paragraph 3 of the Taiwan Stock Exchange Corporation Directions for Announcement or Notice of Attention to Trading Information and Dispositions, or Article 6, paragraph 3 of the Taipei Exchange Operation Directions for Announcement or Notice of Attention to Trading Information and Dispositions, the TWSE or TPEx may during the disposition period reduce the margin purchase ratio to zero and raise the margin percentage for short sale by 10% to make the minimum margin percentage for short sale after the change not lower than 100%. Where changes have been made according to Article 26 or the preceding article, the relevant margin percentage for short sale may be further raised while the margin purchase ratio remains zero. The above applies in the circumstance where changes are made according to this article after more changes are made according to Article 26 or the preceding article.
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| Article 34 | When TWSE or TPEx securities eligible for margin purchase and short sale meet the following resumption conditions after their margin purchase ratio have been reduced by 10% and margin percentage for short sale have been raised by 10% according to Article 26, the TWSE or TPEx will resume the margin purchase ratio and margin percentage for short sale previously assigned for the securities on the following business day, except where changes were made due to excessively intense share price volatility, excessively irregular trade volume, excessively concentrated equity ownership or beneficial ownership that are occurring at the same time or one after another, in which case resumption will not happen unless the following conditions are met:
- The circumstances that cause excessively intense share price volatility have discontinued for six consecutive business days.
- The circumstances that cause excessively irregular trade volume have discontinued for six business days.
- In the event of excessively concentrated equity ownership or beneficial ownership, the TWSE or TPEx has determined that excessive concentration of equity ownership or beneficial ownership has discontinued after reviewing the information furnished by the TWSE or TPEx listed company, foreign issuer or SITE.
In the event that Article 32 applies, the TWSE will resume the margin purchase ratio and margin percentage for short sale previously assigned for the securities on the following business day after the reason for change no longer existed.
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| Article 35 | In the event of suspension and resumption of margin purchases and short sales of securities and changes to margin purchase ratio and margin percentage for short sale in respect of TWSE or TPEx securities, the TWSE or TPEx will promptly make an announcement on the MIS. In the event of suspension of margin purchases and short sales of securities, excessively intense share price volatility, excessively irregular trade volume, excessively concentrated equity or beneficial ownership, decrease of margin purchase ratio and increase of margin percentage for short sale, the TWSE or TPEx will promptly specify the fact in the summary statement of balance of margin purchases and short sales.
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