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Article 10
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A securities firm conducting securities margin purchase and short sale business shall sign a margin trading agreement with its customer and open a margin account.
Contents of the margin trading agreement referred to in the preceding paragraph shall be prescribed by the stock exchange and OTC exchange and reported to the competent authority for approval.
The following matters shall be stated in the margin trading agreement:
- The ratio, and the time limit to make up any difference, under Article 17;
- Disposition of the collateral under Article 18;
- Prohibition against using proceeds derived from short sales and margin deposited for short sales for any other purpose, and the interest rate payable thereupon, under Article 21;
- Centralized custody of customers' securities, and the requirement to deliver securities of the same type when the securities are used according to relevant provisions, under Article 22.
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