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Article 70
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Notwithstanding the provisions of Article 63, the customer is required to sign a consent letter to grant a general authorization (Appendix 3) with the securities firm before it may perform a settlement of a TWSE or TPEx listed security bought on margin and sold short on the same day through an offset of margin purchasing and short selling ("Settlement"). After the securities firm's completion of margin purchase and short sale on the same day, a net settlement is allowed for offsetting a portion of the settlement obligation under the margin purchase against an equal amount of the settlement obligation under the short sale, in which case the securities firm shall produce an Application to Settle Margin Purchases with Cash and an Application to Settle Short Sales with Spot Securities on behalf of the customer for each individual transaction.
If the customer having signed the consent letter under the preceding paragraph does not wish to have netting settlement thereunder carried out, the customer shall give a written instruction to the securities firm before close of market on the day on which the trades are executed.
No interest may be accrued on the margin purchase and short sale with respect to the portions that are offset by netting under paragraph 1; nevertheless, the handling fee or short sale fee for that portion of the short sale shall still be calculated and collected/paid.
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