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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(2017.05.10)
Date：
Article 64     Where a customer applies to settle a margin purchase with cash or a short sale with spot securities by means other than in person, the provisions of the preceding article shall still apply, except that the customer's signature or seal is not required on the settlement application form if the customer has already submitted a signed Letter of Consent That Applications to Settle with Cash or Spot Securities Do Not Require a Signature/Seal, and if the securities firm has kept it on record after verification.
    When a customer makes an application as described in the preceding paragraph by way of telephone, the securities firm shall verify the identity of the customer or its authorized agent and synchronously record the telephone call. When an application is made by way of telecommunication or through electronic means, the securities firm shall verify the customer's expression of intent and the identify of the customer or its authorized agent and keep the records. The telephone and telecommunication recording shall be kept at its place of business. In case of electronic recording, information stored on electronic media shall always be ready to be converted into written form. Records shall be preserved for at least 1 year, or in the event of any dispute, until the dispute has been resolved.
    The authorized agent in the preceding paragraph shall be issued a letter of authorization by the customer, stating that the authorized agent may act for and on behalf the customer in handling matters relating to settlement with cash or spot securities.
    Where a customer has submitted a signed Letter of Consent That Applications to Settle with Cash or Spot Securities Do Not Require a Signature/Seal under paragraph 1, except in the circumstance mentioned in paragraph 2 of the preceding article, the short sale collateral price and short sale margin returnable by the securities firm to the customer shall be deposited into the same bank deposit account used for book-entry settlement of the customer's trading orders, and the securities bought on margin and/or the securities deposited or other merchandise as collateral returnable by the securities firm to the customer shall be transferred into the customer's book-entry custody account or a book-entry central government securities account. Securities or other merchandise deposited as collateral that are not owned by the customer shall be returned through book-entry transfer.
    Securities firms that accept a customer using securities investment fund beneficiary certificates purchased in the name of the securities firm to settle a margin sale, shall operate according to Article 57, paragraph 5. The return transfer in the preceding paragraph is not applicable.