|
Article 2
|
When conducting non-restricted purpose loan business, securities firms shall abide by the Securities and Exchange Act, these Operating Rules, and related Rules, Regulations, Announcements, Explanations of the Taiwan Stock Exchange Corporation ("TWSE"), Taipei Exchange (TPEx), Taiwan Depository & Clearing Corporation ("TDCC").
The non-restricted purpose loan business prescribed under these Operating Rules is limited to financing with securities, claims in outstanding settlement funds receivable or other instruments as collateralsand the scope of collaterals are as follows:
- 1. TWSE or TPEx listed securities, but not including ETF beneficial certificates traded in foreign currency and international bonds, shares subject to an altered trading method, or TPEx managed stocks.
- 2. TPEx traded open-end funds beneficial certificates or physical gold.
- 3. Beneficial certificates of securities investment trust funds or futures trust funds that are domestically offered and that invest domestically (hereinafter as beneficial certificates of open-end securities investment trust funds or beneficial certificates of futures trust funds).
- 4. claims in outstanding settlement funds receivable
- 5. Other collateral approved by the competent authority.
The TPEx traded open-end funds beneficial certificates of the above paragraph refer to beneficial certificates of securities investment trust funds registered for trading on TPEx according to Taipei Exchange Rules Governing the Review of Beneficial Certificates of Open-end Funds for Trading on the TPEx; the beneficial certificates of open-end securities investment trust funds or beneficial certificates of futures trust funds refer to trust funds prescribed under Article 23 of Regulations Governing Securities Investment Trust Funds and Article 8, 9, 10, and 10-1 of Regulations Governing Futures Trust Funds.
The beneficial certificates of open-end securities investment trust funds or beneficial certificates of futures trust funds of the above Paragraph shall be limited to those denominated in New Taiwan Dollar.
The claims in outstanding settlement funds receivable mentioned in paragraph 2, subparagraph 4 refers to the price receivable after a set-off of the prices of the securities under paragraph 2, subparagraph 1 purchased and sold by the securities firm’s clients on the date of application and the preceding business day, less any outstanding amount after the clients have applied before the date of application for lodging the claims in outstanding settlement funds receivable as security.
|
|
Article 16
|
The collateral financing calculation standards for a securities firm that operate non-restricted purpose loan business shall be as follows, save in the event of fractions of one trading unit or of one unit of beneficial rights.
- The value of TWSE and TPEx traded securities, except for central book-entry bonds, municipal bonds, common corporate bonds, secured convertible (exchangeable) corporate bonds, and financial bonds, is 60% of the closing price of the business day immediately prior to financing. However, for securities not eligible for margin purchase and short sale, the value shall be calculated as 40% of the closing price of the business day immediately prior to financing.
- The value of beneficial certificates of open-end funds traded on the TPEx is 60% of the net asset value of each unit of beneficial rights of the business day immediately prior to financing.The value of physical gold is 60% of the closing average at the closing of the business day immediately prior to financing.
- The value of beneficial certificates of open-end securities investment trust funds or futures trust funds is 60% of the net asset value of the business day immediately prior to financing. The value of physical gold is 60% of the closing average of the business day immediately prior to financing.
- The value of central book-entry bonds is 80% of the face value.
- The value of municipal bonds, common corporate bonds,secured convertible (exchangeable) corporate bonds, and financial bonds is 60% of the face value.
- The financing amount is calculated as below where claims in outstanding settlement funds receivable are lodged as security:
Financing amount = (Price payable by the securities firm to the client on the date of application) + (Price payable by the securities firm to the client on the day prior to the date of application) – (Price receivable by the securities firm on the date of application) – (Price receivable by the securities firmon the day prior to the date of application) – (Outstanding amount after the client has applied before the date of application for lodging the claims in outstanding settlement funds receivable as security). The securities firm may also calculate and grant the financing amount after deducting the financing interest from the financing amount first mentioned above.
A security firm may adopt a stricter standard of the calculation standard of preceding paragraphin accordance with the market status of the collateral market and the client credit risk.
If there is no closing price of the business day immediately prior to financing prescribed under subparagraph 1 of paragraph 1, the price shall be replaced with the price calculated according to the principles prescribed in Article 58-3, paragraph 2, subparagraph 2 of the Operating Rules of the Taiwan Stock Exchange Corporation or Article 57, paragraph 1 of the Taipei Exchange Rules Governing Securities Trading on the TPEx.
The financing calculation standard of the collateral set forth in paragraph 1 may be adjusted by TWSEin consultation withTPExbased on the conditions of the collateral.
|