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Relevant Laws

Title:Operating Rules for Securities Firms Handling Margin Purchases and Short Sales of Securities (2023.08.17)
Article 13     As samples for review purposes of TWSE listed securities to which excessively intense share price volatility or excessively irregular trade volume as mentioned in Article 8, paragraph 1, subparagraph 3, item 1 or 3 occurs, listed common shares, Taiwan depository receipts, and beneficial certificates other than those whose trading method has altered or those of a Taiwan Innovation Board listed company or Taiwan Innovation Board primary listed company are taken for comparison. As samples for review purposes of TPEx listed securities, TPEx listed common stock shares other than TPEx listed managed stocks and stocks registered on the Emerging Stock Board, and ETF Beneficial Certificates and beneficial certificates of futures trust exchange-traded funds are taken for comparison.
Article 26     The TWSE or TPEx will review each day the prices and trade volumes of TWSE or TPEx securities eligible for margin purchase and short sale, and will reduce the margin purchase leverage ratio by 10% and raise the short sale margin by 10% on the following business day in the event of excessively intense share price volatility or excessively irregular trade volume for five consecutive business days or six out of the last ten business days, or in the event of excessively concentrated equity or beneficial ownership as disclosed by information relating to the equity of a TWSE or TPEx listed company or foreign issuer holding an ordinary shareholders' meeting or to the beneficial rights of a securities investment trust enterprise holding a fund beneficiaries meeting. Whether the above occurs contemporaneously or successively, the margin purchase leverage ratio will be reduced by 10% and the short sale margin raised by 10% only, upon such occurrence.
    The preceding paragraph does not apply to ETF beneficial certificates, offshore ETF beneficial certificates, and futures ETF beneficial certificates.