Taiwan Stock Exchange - Rules & Regulations Directory

Amendments

Title:
Taiwan Stock Exchange Corporation Securities Lending and Borrowing Regulations(2004.12.31)

Article 18
The term of securities borrowing under a strategic transaction shall not exceed 6 months from the date of conclusion of the borrowing transaction.
A securities borrower may redeliver the borrowed securities at any time during the agreed term.
A securities borrower who applies to borrow securities for purposes of redelivering securities shall redeliver the securities to the borrower on the same day after the borrowing is executed or the next business day.
If the lender does not request early redelivery of the securities, the borrower may, from 10 to 5 business days before expiration of the lending period, submit an application to the lender via this Corporation for extension of the loan. If the lender does not give consent within three business days from the date it receives the notice, it shall be deemed to have refused.
In an application for extension of a loan under the preceding paragraph, no term or condition of the loan may be amended except the loan period. The extension period may not exceed six months, and only one extension may be given.
A lender of fixed-price transaction or a competitive-auction transaction may file an application for redelivery of the securities with this Corporation only upon expiry of 10 business days after the securities lending, and this Corporation will so inform the borrower.

Article 27
When a lender or a borrower is to entrust a securities firm to lend or to borrow securities, it shall fill out a letter of entrustment marked with the wording "securities lending," "securities borrowing," or "securities redelivery." After the lending and borrowing transaction is concluded, the securities firm shall fill out a securities lending and borrowing report according to the transaction data of this Corporation, marked with the wording "securities lending," "securities borrowing," or "securities redelivery," the format of which is as shown in Appendix 4 hereto.
Paragraph 1 of Article 75 of Operation Rules of this Corporation shall apply mutatis mutandis to the circumstances set forth in the preceding paragraph.
The securities lending and borrowing report shall contain the particulars with respect to the names and account numbers of the borrower and the lender, date of transaction, reference number of the letter of entrustment, type of transaction, title of securities, volume, unit price, charge rate, and category and quantity of collaterals.
This Corporation will inform by way of transmission of files to the securities firm of the concerned borrower of the stipulated collateral ratio, collateral maintenance ratio and minimum collateral ratio.
This Corporation will inform the borrower and the lender via the securities firm of the notice of ex right or ex dividend and the statements pertaining to its calculation.
After a lending and borrowing transaction is settled, this Corporation will produce statements in connection with securities borrowing expenses, securities lending income, return of collaterals, and the net amount to receive and to pay, which shall be informed to the borrower and the lender by the securities firm.

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