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Article 48
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For executed margin purchases and short sales, a securities firm shall calculate the balance of long and short positions in a customer's margin account after close of market each day. The customer shall settle with cash or spot securities any portion that is beyond the long position limit or short position limit.
After a customer places an order for a short sale, if a rise in the price causes the customer's short balance to exceed the short position limit, the securities firm may lend the security to the customer for short selling within the extent of the daily price limit on the given day, provided that if short sales of ETF beneficial certificates with foreign component securities, offshore ETF beneficial certificates, or futures ETF beneficial certificates are not subject to a price limit, the securities firm may accommodate short sale of the securities within the extent of the highest trade price on the given day.
When the market price per trading unit of a security sold short exceeds the short position limit, a customer may sell one trading unit short if the customer's margin account is clear of any short balance.
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