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Amendments

Title：

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

Amended Date： 2024.09.05 (Articles 41, 80, 83 amended,English version coming soon)
Current English version amended on 2023.12.28 
Categories： Securities Exchange Market > Margin Transaction
Article Content Chapter Content Search Article No. Search Legal Basis Subordinate Legislation Amended Article Legislative History Chinese

Title： Operating Rules for Securities Firms Handling Margin Purchases and Short Sales of Securities(2008.03.27)
Date：
Article 32 During the period when a securities finance enterprise is engaging in a competitive bid borrowing, negotiated borrowing, or purchase by tender offer to cover a security that falls short of short sale needs, a securities firm may temporarily suspend the short selling of that security, and may also refrain from processing cash settlement of any margin purchase of that security, except in the case of settling a margin purchase at maturity, or where a customer is applying to settle a margin purchase with cash and will use the receivable securities to settle a short sale.
Where a securities firm conducts securities margin purchase and short sale business, and the combined total balance of short sales of any given type of securities plus the balance of loans of that type of securities extended in securities lending business reaches the combined total balance of margin purchases, its proprietary shares of that type of security, plus the shares thereof borrowed from the TSEC securities lending system, the securities firm, during the resulting period of cessation of provision of short sales, may not withdraw its proprietary shares of securities that have been used as a source of securities for short sale business.