| Title： |
Operating Rules for Securities Firms Handling Margin Purchases and Short Sales of Securities(2010.01.26) |
| Date： |
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Article 10
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A securities firm may not entertain an application to open a margin account from any customer to whom any of the circumstances below applies. If an account has already been opened, the securities firm shall promptly notify the customer to close out all outstanding margin purchases and short sales on the next business day and thereafter cancel the margin account; if the customer fails to close out all outstanding margin trades within this time limit, the securities firm shall, by the mutatis mutandis application of Article 39, paragraph 3, close out the trades for the customer starting from the next business day.
1. The customer does not meet the account opening threshold requirements.
2. The customer applies to open a margin account using the name of another person.
3. Any circumstance under Article 76, paragraph 1 or 3, of the TSEC Operating Rules or Article 47, paragraph 1 or 2, of the GreTai Trading Rules applies to the customer.
4. A brokerage account previously opened by the customer at the securities firm has been cancelled, or, after a trading order is executed, funds and/or securities payable are not delivered and the case remains pending.
5. (deleted)
6. The customer has previously breached a margin agreement entered into with a securities firm or securities finance enterprise, where the case remains pending.
7. The customer is the subject of a court petition for reorganization, composition, or bankruptcy under the Company Act or the Bankruptcy Act.
8. A clearinghouse for negotiable instruments has blacklisted the customer.
9. (deleted)
The provisions of the preceding paragraph apply mutatis mutandis where money and/or securities in a margin account are the subject of a court ruling for provisional attachment, provisional injunction, or compulsory execution.
Where any circumstance in the preceding two paragraphs applies to a juristic person or its responsible person, the responsible person or any juristic person represented thereby is also prohibited from opening a margin account. An account that has already been opened shall be subject to the provisions of paragraph 1.
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