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Regulations Governing Securities Borrowing and Lending by Securities Firms  CH

Amended Date: 2015.11.02 
   Chapter IV Supplementary Provisions
Article 39    The net worth of a securities firm shall be determined, if it is a business concurrently operated by a financial institution, by the allocated operating capital, or if it is a branch established within the territory of the Republic of China by a foreign securities firm, by the funds appropriated exclusively for the operation of business within the territory of the Republic of China.
Article 40    The TWSE and TPEx shall prepare regulations governing business operations for securities firms conducting securities borrowing and lending business, which regulations shall make provisions governing the subject securities with respect to securities borrowing and lending transactions, matters relating to application and redelivery, acceptable forms of collateral, substitution and disposal of collateral, calculation of the collateral ratio, procedures for credit extension operations and risk control, and such other matters as may be required by the competent authority, and the regulations shall be submitted to the competent authority for approval.
    A securities firm conducting securities borrowing and lending business shall do so in accordance with the regulations governing such business operations referred to in the preceding paragraph.
Article 41    These Regulations shall be enforced from 1 February 2016.