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Article NO. Content

Title:

Taiwan Stock Exchange Corporation Securities Borrowing and Lending Rules  CH

Amended Date: 2019.09.26 
Categories: Securities Exchange Market > Borrowing of Securities
Article 58 A lender as in Article 56, paragraph 1, subparagraph 1 wishing to participate in the competitive bid process for a competitive bid loan shall fill out a bid order and submit it through a securities firm. If it is submitted in person, the bid order shall be filled out and signed/sealed by the securities owner; if it is submitted over the telephone, the securities broker shall synchronously record the telephone conversation, and in doing so shall comply with the provisions of Article 80, paragraphs 4 to 6 of the TWSE Operating Rules, and the bid order shall be completed by the associated person handling the bid order. Where an order is placed in the manner of transaction listed in Article 75, paragraph 1, subparagraph 8 of the TWSE Operating Rules, the bid order shall be made according to the relevant operating procedures.
A lender as in Article 56, paragraph 1, subparagraph 2 wishing to participate in the competitive bid process for a competitive bid loan shall fill out a bid order and enter the bid order information in the TWSE competitive bid loan system.
The bid order in the preceding two paragraphsshall specify the name ,name of the dedicated account, brokerage account number, securities lending account number or margin purchase and short sale account number of the lender in Article 56, paragraph 1, subparagraph 1, as well as the name, quantity and rateof securities lent.Securities offered to participate in the competitive bid process may only be securities it has deposited in a custody account at the central securities depository. The securities firm, when accepting a bid order request from a lender as in Article 56, paragraph 1, subparagraph 1, or when a lender as in Article 56, paragraph 1, subparagraph 2 participates in a competitive bid process for its own account, shall put the lendable securities on hold (except for those securities that have been lent out on the previous business day). The securities firm shall record the time and serial number on the bid order, and enter the information on the bid order in sequence into the TWSE competitive bid loan system.
The timeframe for entering information, as described in the preceding paragraph, shall start from 9 am and end at 12:10 pm on the application date of the competitive bid loan, and all bids will be opened automatically at 12:30 pm; upon completion of the bid opening procedure, the TWSE will publish on the Market Information System the lending rate(s) and number of shares of the winning bid(s).
The order confirmation and winning bid confirmation of the lender in Article 56, paragraph 1, subparagraph 1 in relation to the competitive bid loan will be printed out through the printer of the securities firm handling the bid order. Entry confirmations and winning bid confirmations of the lenders in Article 56, paragraph 1, subparagraph 2 in relation to the competitive bid loan will be printed by the respective companies. The TWSE will provide a function to query for winning bid(s) from 2 pm.

Interpretation: