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Article NO. Content


Taiwan Stock Exchange Corporation Securities Borrowing and Lending Rules  CH

Amended Date: 2021.06.07 
Categories: Securities Exchange Market > Borrowing of Securities
Article 34     A borrower in a fixed-price or competitive bid transaction applying to replace collateral shall do so through its securities firm, using the TWSE securities lending system, and shall provide substitute collateral before submitting an application to withdraw the previously pledged collateral within the value of the substitute collateral (in the case of collateral securities, the value shall be discounted at the collateral valuation percentage based on the auction reference price at the opening of market or base price for first trading for the current day on the exchange market).
    Upon occurrence of any of the following circumstances to the collateral provided against a securities borrowing transaction, the TWSE shall forthwith give notice to the securities firm, to be then forwarded to the borrower, advising the borrower to replace the collateral on the next business day:
  1. Where the collateral securities do not conform to subparagraph 2, paragraph 1, Article 33 or otherwise are subject to an event of altered trading method, capital reduction, suspension of trading, delisting from the TWSE or GTSM, or split or reverse split of ETF beneficial certificates.
  2. Where the bank guaranteeing the performance of obligation becomes insolvent or, by the operation of law, is put under receivership or rehabilitation or files for reorganization or bankruptcy, or is declared bankrupt or subject to court ruling for reorganization, or has any other event involving significant loss of creditworthiness.
  3. Any other event sufficient to result in a low value or liquidity of the collateral.