Net available funds of a securities firm are calculated as follows:
Net available funds = Current assets - Current liabilities + Clearing and settlement fund + Operating bond
When applying to a branch office in Taiwan of a foreign securities firm, the abovementioned formula is based on the balance of each such item as listed in the monthly statement filed by said office each month; when applying to a futures commission merchant that concurrently engages in securities business, the above formula is based on the balance of each such item as listed in the monthly statement of the securities department filed each month.
The net funds available to a securities firm may be calculated as below without being subject to the restrictions in paragraphs 1 and 2 if it, for special reasons, makes an application accompanied by a letter of guarantee issued by a domestic bank and obtains the special approval of the TWSE 10 business days prior to the commencement date of the guarantee.
- The TWSE may relax the period of availability from two business days prior to the commencement date of the term of guarantee to two business days prior to its expiration based on a term of guarantee of not more than 10 business days as stated in the letter of guarantee (settlement days).
- The TWSE may include the amount of guarantee stated in the letter of guarantee in the net available funds of the securities fir4m.