| Title： |
Operating Rules for Securities Lending by Securities Firms(2017.03.28) |
| Date： |
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Article 34
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If during the term of a securities loan any of the following circumstances applies to a customer, the securities firm shall notify the customer to close out its securities borrowing and lending transactions on the following business day, and then cancel that customer's securities borrowing and lending account. the positions have not been closed out by the deadline, the securities firm shall begin on the following business day to close out the securities lending transactions through the mutatis mutandis application of Article 32, paragraph 2 herein:
- Failure to perform settlement obligations on time as specified in Article 91 of the Operating Rules of the TWSE, Article 87 of the GTSM Rules Governing Securities Trading on the GTSM, or Article 58 of the Operating Rules of the Taiwan Futures Exchange Corporation.
- Any default or violation specified in Article 81 of the Operating Rules for Securities Firms Handling Margin Purchases and Short Sales of Securities or Article 28 of the Operating Rules for Securities Business Money Lending by Securities Firms.
If during the term of a securities loan any of the following circumstances applies to a customer at another securities firm, futures commission merchant, or securities finance enterprise, the securities firm shall halt the customer's adding of any new securities borrowing and lending transaction:
- Any breach specified in Article 76, paragraph 3, subparagraph 1 or 3 of the Operating Rules of the TWSE or Article 47, paragraph 2, subparagraph 1 or 3 of the GTSM Rules Governing Securities Trading on the GTSM.
- Any default or in violation specified in Article 81 of the Operating Rules for Securities Firms Handling Margin Purchases and Short Sales of Securities, Article 28 of the Operating Rules for Securities Business Money Lending by Securities Firms, or Article 33 of these Operating Rules.
- Any default, or violation of the type referred to in the preceding subparagraph, as specified in the securities finance enterprise's operating rules for handling margin purchases and short sales, securities settlement financing rules, or rules of operation for securities lending.
Before a case of a default or violation under the preceding paragraph has been closed, after the securities the customer provided as collateral have been sold through the Securities Lending Default Handling Account opened by another securities broker retained by the securities firm, the customer may buy back the securities from the market to return those securities.
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Article 37-1
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No director, supervisor, officer, or shareholder with more than 10% shares of an issuer of the subject securities may engage in borrowing and lending transactions or sale of borrowed securities involving such subject securities, whether in its own name or in the name of a domestic or offshore company directly or indirectly incorporated.
With the exception of natural persons and the designated institutional investors mentioned in Article 12-1, paragraph 2 of the TWSE Securities Borrowing and Lending Rules, an SBL participant shall advise the securities firm of the names and nationalities of the top three shareholders in terms of shareholding, each holding up to 30% or more of shares. Juristic-person shareholders shall also advise the names and nationalities of the top three natural-person shareholders in terms of shareholding, each holding up to 30% or more of shares. The government uniform invoice number of a profit-seeking enterprise or national ID number shall further be provided in the event of an R.O.C. shareholder; the national ID number and government uniform invoice number of a tax withholding agent shall be provided in the event of an offshore overseas Chinese or foreigner that has completed registration.
The shares held by a shareholder as mentioned in the preceding paragraph shall include those held by its spouse and minors and in others' name.
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