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Article 23
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A securities firm conducting margin purchase and short sale business shall cease providing short sales or loans when the combined total balance of short sales of any given type of securities plus the balance of loans of that type of securities in securities lending business, and the balance of loans under paragraph 1, subparagraphs 5 to 7 of the preceding article reaches the combined total amount of all of the following amounts for the given type of securities:
- The balance of margin purchases of that type of securities.
- The securities firm's own holdings of that type of securities.
- Borrowings made from the Stock Exchange securities lending system of that type of securities.
- Securities borrowed from customers in conducting securities borrowing and lending business.
- Securities borrowed from securities firms or securities finance enterprises conducting securities borrowing and lending business or securities margin purchase and short sale business.
A securities firm that borrows securities from a securities firm or securities finance enterprise conducting securities borrowing and lending business shall allocate on a monthly basis a performance bond that accounts for a certain percentage of the total monetary amount of the borrowed securities.
The performance bond under the preceding paragraph shall be deposited with the TWSE. The regulations governing the deposit, custody, payment, and return of the performance bond shall be jointly drafted by the TWSE and TPEx, and submitted to the competent authority for final approval.
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