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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(2010.07.30)
Date：
Article 19 When handling securities lending business, a securities firm may accept the following types of assets as collateral, to be valued at the valuation percentages indicated:
1. Cash.
2. Book-entry central government bonds. Calculate at 90 percent of face value.
3. Securities eligible for margin purchases and short sales. The collateral value of securities eligible for margin purchase and short sale transactions shall be 70 percent of the most recent closing price if they are exchange-listed securities, or 60 percent of the most recent next day's reference price if they are OTC-listed securities.
The closing price and reference price of the preceding subparagraphs 2 and 3 shall be set pursuant to Article 58-3 of the TWSE Operating Rules or Article 57 of the GreTai Rules Governing Securities Trading on Over-the-Counter Markets.
Securities collateral that a securities firm collects from a customer shall be limited to securities that the customer itself owns.
The collateral valuation percentages in paragraph 1 may be adjusted by the TWSE in conjunction with the GreTai based on the condition of the collateral. The lender and borrower may separately agree to a collateral valuation percentage lower than the prescribed percentage.
The collateral under paragraph 1, subparagraph 1 shall be limited to new Taiwan dollars. Notwithstanding the foregoing, an offshore overseas Chinese or foreign national may pledge US dollars as collateral, subject to regulations separately adopted by the TWSE.
A securities firm may refuse to accept, or lower the valuation percentage for, the collateral listed in paragraph 1, subparagraph 3, depending on the market liquidity and risk status of that collateral.