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Taiwan Stock Exchange Corporation Securities Borrowing and Lending Rules(2024.07.18) |
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Article 52
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Lendable securities shall be restricted to those securities listed on a centralized exchange market and shown in the custody accounts at the central securities depository. An owner of such securities wishing to lend the securities shall fill out a lend order instructing its securities firm or its custodian institution to enter relevant information into a computerized securities borrowing and lending system for a lending quote, and may change or cancel the quote at any time before the conclusion of the lending transaction.
The lending order under the preceding paragraph shall specify the title and quantity of securities to be lent as well as the lending quote and shall be made in a form determined by the TWSE.
If the quantity under the preceding paragraph is quoted on a per trading unit basis, the transaction is called settlement-driven securities borrowing. If the quantity under the preceding paragraph is quoted on a per share basis, the transaction is called odd-lot settlement-driven securities borrowing. The lending rate shall be no more than 7 percent of the closing price of the securities.
In the event that loaned securities go ex-rights or ex-dividend, the borrowing securities firm shall compensate the lender in cash in the amount of the value of the rights or dividends on the securities, as calculated by the TWSE.
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Article 52-1
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The parties to lend to in settlement-driven securities borrowing are limited to those applying for borrowing securities on a per trading unit basis or on the basis of an integer multiple of a trading unit. The parties to lend to in odd-lot settlement-driven securities borrowing are limited to those applying for borrowing fractions of a trading unit.
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Article 53
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A settlement-driven securities borrowing request shall be matched against one or more of the lending quotes available from among all lenders, in ascending order of lending rate, until the borrowing quantity is reached; if the lending quantity is reached at a rate at which the total quantity from all lending quotes at that rate is higher than the quantity needed to be borrowed, one or more of those lending quotes will be selected on a random basis for matching, until the needed quantity is reached.
An odd-lot settlement-driven securities borrowing request shall be matched against one or more of the lending quotes available from among all lenders, in ascending order of lending rate, until the borrowing quantity is reached; if the lending quantity is reached at a rate at which the total quantity from all lending quotes at that rate is higher than the quantity needed to be borrowed, the lending quantity will be lent in descending order until the quantity needed to be borrowed is reached. If the lending quotes and quantities are the same, one or more of those lending quotes will be selected on a random basis for matching until the needed quantity is reached.
The securities lending fee incurred on a given security shall be shared by all securities firms borrowing that security, on a pro rata basis according to their respective borrowing quantities.
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Article 53-1
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The bank remittance fee for the transfer by the securities firm of the lender of the odd-lot lending income will be borne by the borrowing securities firm.
The fee mentioned in the preceding paragraph is NTD 30 per borrowing transaction by a borrowing securities firm, to be distributed by the TWSE to each securities firm of the lender on a pro rata basis according to the number of lending accounts.
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