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Amendments

Title：

Operating Rules for Securities Lending by Securities Firms  CH

Amended Date： 2023.08.17 
Categories： Securities Exchange Market > Borrowing of Securities
Article Content Chapter Content Search Article No. Search Legal Basis Amended Article Attachment Legislative History Chinese

Title： Operating Rules for Securities Lending by Securities Firms(2010.07.16)
Date：
Article 25 A securities firm shall on a daily basis and for each customer calculate the collateral ratio of the overall securities borrowing and lending account, and each individual securities loan thereunder, based on the closing price published by the TWSE, or the next day's reference price published by the GreTai, according to the following formula:
Collateral ratio = (total collateral value of the collateral － securities lending fees payable ) ÷ (market value of the loaned securities ＋ market value of stock dividend shares to be returned ＋ cash dividends to be returned) × 100%
Except in the case of a cash capital increase, for the six business days prior to any ex-dividend or ex-rights date for a security that is provided as collateral, its market value shall be calculated at the valuation percentage specified in Article 19, based upon the respective current day's closing price or next day's reference price, minus the value of the dividend or minus the value of the right determined based on the current day's closing price or the next day's reference price.
Where a customer's overall account collateral ratio is lower than the 120 percent collateral maintenance ratio, the securities firm shall promptly notify the customer to provide additional collateral within two business days from the day the notice is delivered to make up the collateral shortfall for each individual securities lending transaction that does not meet the required collateral maintenance ratio, so as to bring the individual collateral ratios thereof above the initial collateral ratio.
The collateral maintenance ratio of the preceding paragraph and the initial collateral ratio of Article 15 may be adjusted by the TWSE in consultation with the GreTai based on market circumstances.