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Article NO. Content

Title:

Taiwan Stock Exchange Corporation Specific Standards and Procedures for Halting and Reinstating Margin Purchase and Short Sale of Securities, and for Adjusting Margin Purchase Leverage Limits and Short Sale Margin Requirements  CH

Repeal Date: 2016.12.30 
Categories: Securities Exchange Market > Margin Transaction
5     For TWSE listed securities eligible for margin purchase and short sale transactions, where the margin purchase leverage limit has been lowered by 10 percent or the short sale margin requirement raised by 10 percent pursuant to the provisions of the preceding point, the TWSE shall reinstate the original margin purchase leverage limit and short sale margin requirement for those securities on the next business day after the reinstatement conditions set out below are met; note, however, that where the adjustment was made because excessive volatility of share prices, excessive abnormality of trading volume, and overconcentration of equity ownership or beneficial ownership have occurred simultaneously or in close succession, reinstatement may not be effected until each of the following reinstatement conditions have been met:
  1. Excessively volatile share price: The reason for readjustment has been extinguished for 6 consecutive business days.
  2. Excessively abnormal trading volume: The reason for readjustment has been extinguished for 6 consecutive business days.
  3. Overconcentration of equity ownership or beneficial ownership: The TWSE listed company, foreign issuer, or securities investment trust enterprise has furnished records to the TWSE which, upon review, indicate that overconcentration of equity ownership or beneficial ownership no longer exists.
    Where the circumstances in paragraph 3 of the preceding point arise, once the reason for adjustment is extinguished, the TWSE shall on the next business day reinstate the original margin purchase leverage limit and the original short sale margin requirement for those securities.