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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(2022.09.07)
Date：
Article 75     Securities firms engaging in margin-purchasing and short-selling securities shall suspend short sales and lending of securities immediately if the sum of the balance of short sales of each security plus the balance of borrowing of securities, lending of securities to securities firm or securities finance enterprise engaging in borrowing of securities, balance of securities lending at the TWSE securities lending system, and balance of securities borrowed through lending auction or lending negotiation reaches the combined total of the amounts in each of the following paragraphs:
  1. The margin loan balance.
  2. The proprietary securities.
  3. The securities borrowed from the TWSE securities lending system.
  4. The securities borrowed from customer in the borrowing of securities.
  5. The securities borrowed from securities firm or securities finance enterprise engaging in borrowing of securities or dealing with margin purchases and short sales.
    The ceiling of securities loans of daily offsetting of margin purchases and short sales for securities firms shall be calculated by deducting the sum of the items under paragraph 2 "Minus" from the sum of the items under paragraph 1 "Plus" (based on business day):
  1. Plus
    1. The margin loan balance on the previous day:
      1. The margin loan balance.
      2. The balance of the proprietary securities.
      3. The balance of the securities borrowed from the TWSE securities lending system.
      4. The balance of the securities borrowed from customer in the borrowing of securities.
      5. The balance of the securities borrowed from securities firm or securities finance enterprise engaging in borrowing of securities or dealing with margin purchases and short sales.
    2. The purchased, borrowed or settled securities on the current day:
      1. The margin purchases.
      2. The proprietary securities settled on the current day.
      3. The securities borrowed from the TWSE securities lending system.
      4. The securities borrowed from customer in the borrowing of securities.
      5. The securities borrowed from securities firm or securities finance enterprise engaging in borrowing of securities or dealing with margin purchases and short sales.
    3. Covering of securities borrowing on the current day:
      1. The redemption by delivery of spot securities.
      2. The redemption by delivery of securities by customer borrowing securities.
      3. The redemption by delivery of proprietary securities.
      4. The redemption by delivery of securities by securities firm or securities finance enterprise engaging in borrowing of securities.
      5. The redemption by delivery of securities by borrower borrowing securities from the TWSE securities lending system.
  2. Minus
    The outstanding securities loan on the previous day.
    1. The balance of short sales.
    2. The balance of securities lent in the borrowing of securities.
    3. The balance of securities lent to securities fir or securities finance enterprises engaging in borrowing of securities.
    4. The balance of securities lent in the TWSE securities lending system.
    In the calculation of the ceiling of securities loans in the preceding paragraph, no securities firm may, in the absence of an authorized limit on short sales, engage first in a short sale then a margin purchase for set-off.