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Article 17
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Securities finance enterprises handling margin purchases and short sales of securities shall establish operating rules for margin purchase and short sale business and implement the same with the competent authority's approval.
The operating rules referred to in the preceding Paragraph shall include the following items:
- The opening of the margin account.
- The application for the margin purchase or short sale and repayment.
- The calculation, replenishment, and disposition of collateral.
- The transfer of securities or commodities for collateral.
- Obtaining securities to cover shortfalls arising in connection with short sales.
- The transfer of title to securities provided as collateral for margin purchases and to securities or commodities paid in as additional collateral.
- Other items required by the competent authority.
Securities finance enterprises shall comply with the operating rules referred to in paragraph 1 in handling securities trading margin purchase and short sale business.
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