| Title： |
Regulations Governing Securities Firms(2021.05.06) |
| Date： |
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Article 9
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After completion of corporate registration, a securities firm shall lodge an operation bond with a bank designated by the FSC as follows:
- A securities underwriter: NT$40 million.
- A securities dealer: NT$10 million.
- A securities broker: NT$50 million. However, if the securities broker operates only the following business, the bond shall be NT$10 million:
- Operates only equity crowdfunding business.
- Operates only brokerage business for trading and exchanging beneficial certificates of funds.
- Operators of two or more types of securities business: aggregate of the amounts as referred to in the preceding three subparagraphs according to the types of business being engaged in.
- Branch office: additional NT$5 million for each branch.
The operation bond referred to in the preceding paragraph shall be paid in cash, government bond, or financial bond.
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Article 32-1
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As needed for hedging in the issuance of call (put) warrants and exchange traded notes and in the operation at its place of business of structured instruments and equity derivatives, a securities firm may borrow and sell, or sell short, the underlying securities, exempt from the restriction that the selling price of the securities borrowed or sold short may not be lower than the closing price of the previous business day.
A securities firm, for purposes of providing bid and ask quotes or meeting hedging needs in its capacity as a market maker, may borrow and sell the underlying securities, exempt from the restriction that the selling price of the securities borrowed may not be lower than the closing price of the previous business day.
A securities firm selling securities by borrowing them as referred to in the preceding two paragraphs shall enter into a loan contract with the lender of the securities. The following particulars shall be specified in the loan contract:
- Name, volume, period, and rate of the loaned securities.
- Means of exercise of shareholders' rights of the loaned underlying securities.
- The means of reimbursement by the securities firm of the rights/dividend value to the lender for ex-rights/ex-dividend dates of the loaned securities (including the means of calculation, whether reimbursement is to be made in cash or securities, and the reimbursement date).
- Means stipulated between the parties for return of the securities upon expiry of the contract (including whether or not the securities may be refunded as cash).
- Means stipulated between the parties for handling of breach and related matters of damages.
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Article 38-1
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A securities firm that operates brokerage business for trading and exchanging beneficial certificates of funds shall set up a separate account with a bank for paying and receiving funds of the customer. The funds in the account shall be kept separate and independent from the securities firm's own assets, and may not be used for other purposes.
A securities firm that operates only brokerage business for trading and exchanging beneficial certificates of funds shall sign a trust agreement with the financial institution with which the separate deposit account is opened, designate the separate deposit account as the trust account, and engage the financial institution to manage, utilize, and dispose of the funds in the account in accordance with the trust agreement.
A securities firm that operates only brokerage business for trading and exchanging beneficial certificates of funds, if it fails to do as set out in the preceding paragraph, may not accept funds from customers.
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Article 45-1
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Securities firms operating the business of proprietary trading of security tokens (virtual currencies that have the nature of securities), equity crowdfunding business, or brokerage business for trading and exchanging beneficial certificates of funds shall do so in accordance with applicable rules adopted by the TPEx.
A securities firm that operates only security token proprietary trading business, equity crowdfunding business, or brokerage business for trading and exchanging beneficial certificates of funds is not subject to the provisions of Article 2, Article 5, Article 6, Article 13, Article 14, Article 18, Article 18-1, Article 21, Chapter V, and Chapter VI.
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