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Article 63
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A customer applying to settle a margin purchase with cash or a short sale with spot securities shall deliver the money or securities by 12 noon of the current day, and shall fill out an Application to Settle a Margin Purchase with Cash or Application to Settle a Short Sale with Spot Securities and submit the application to the securities firm. Upon verification of the accuracy of the content, the securities firm shall deliver the short sale proceeds and short sale margin to the customer by the second following business day, or in the case of securities bought on margin or securities deposited or other merchandise as collateral, or securities investment trust fund beneficiary certificates purchased not in the name of a securities firm, where the customer has maintained a depository account or a book-entry central government securities account, transfer the securities to the account by the second following business day, or in the case of withdrawal of spot securities by the customer, deliver the securities by the third following business day.
A customer applying to settle a short sale with spot securities which are borrowed from the same securities firm through securities lending business as the source of securities, the short sale collateral, short sale margin, or securities eligible to be deposited as collateral by securities firms for conducting securities lending business may, with the customer’s consent, be pledged as collateral of the securities concerned and not be subject to the requirement for transfer through book-entry in the preceding paragraph. Any balance after the pledge as collateral shall be returned pursuant to the preceding paragraph unless the securities firm and customer agree otherwise.
The matters mentioned in the preceding paragraph that are subject to the customer’s consent and agreement with the customer shall be recorded by the securities firm.
During the suspension or halting of trading of the underlying securities in margin purchase and short sale, the customer may apply to settle a short sale by cash payment or delivery of spot securities.
Except under any of the following circumstances, the customer may not apply to use third-party securities as spot securities to settle a short sale:
- during a period in which trading has been suspended or halted in the underlying securities of the short sale
- where an order for margin purchase has been placed to settle the short sale at the maximum price of the auction reference price at market opening on the TWSE or the basis price for the opening of trading on the TPEx on the same day and cannot be executed before the start of the trading session of the sixth business day prior to the book closure date of the underlying securities.
Where the securities acquired by a customer through margin purchases are short of one trading unit as a result of a split, reverse split, or otherwise, settlement of margin purchases with cash shall be carried out in respect of fractions of said unit
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