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If proceeding with settlement by the offsetting of margin purchases and short sales in margin trading (the "Settlement"), a principal purchasing and selling the same kind of securities with the margin loan on the same day shall sign a general authorization agreement with the securities firms beforehand (as attached). After the transaction of margin purchase and short sale on that day, the same amounts will be offset automatically, and the securities firms will generate on behalf of the principal an Application to Settle Margin Purchases with Cash and an Application to Settle Short Sales with Spot Securities transaction by transaction; the principal is not required to file an application for each transaction.
If a principal decides not to proceed with the Settlement after signing the agreement, it must file a written statement with the securities firm before closing on the trading day.
The aforesaid amount of offsetting does not include the interest of margin purchases and short sales, provided the amount of offsetting for short sales shall still include the short sale fee according to applicable requirements.
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