Taiwan Stock Exchange - Rules & Regulations Directory
Taiwan Stock Exchange Corporation Securities Lending and Borrowing Regulations(2003.09.19)
The securities financing enterprise shall pay to this Corporation a security sum in the amount of 120% of the closing price of the object securities on the then current day multiplied by the awarded volume of tender by 2:00pm of the day of application for such borrowing by tender.
After the securities financing enterprise has paid the security sum, this Corporation will notify the Securities Central Depository Enterprise to transfer the awarded securities to the special account of the securities financing enterprise on the first business day following the date of application for borrowing by tender (the lending date).
The security sum referred to in the preceding paragraph may be paid by way of bearer government bond or transferable bearer certificate of deposit or central book-entry bond, and the setoff value shall be counted at 90% of the face value of such collaterals.
Where the securities financing enterprise pays the security sum by way of central book-entry bond, it shall do so by creating a pledge thereupon.
The lent securities will be returned through the Securities Central Depository Enterprise on the first business day following the lending date.
By 10:00am of the first business day following the lending date, the securities financing enterprise shall pay the securities borrowing charge (securities borrowing charge = lending unit price x volume) to the lender through the entrusted securities firm, and this Corporation will return the security sum to the securities financing enterprise.
The entrusted securities firm may collect a handling fee from the lender; such handling fee shall not exceed 10% of the securities borrowing charge.
If a securities financing enterprise is unable to return the borrowed securities to the owner by the due time, this Corporation will employ the security sum to make up the object securities and return to the lender. In case of any remaining balance thereafter, such balance will be returned to the securities financing enterprise. However, in case the security sum is insufficient to make up the object securities, this Corporation will give the security sum to the lender.
If the securities financing enterprise pays the security sum by way of pledging a central book-entry bond under the preceding paragraph, the securities financing enterprise shall neither refuse nor raise any objection to the manner or price of disposal of the pledge by this Corporation in accordance with the Statement of Consent (see attachment) provided by the securities financing enterprise.