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Article NO. Content


Directions for Collateral Management in Fixed-price and Competitive Auction Securities Borrowing and Lending Transactions  CH

Amended Date: 2016.12.20 
Categories: Securities Exchange Market > Borrowing of Securities
4     Applications for withdrawal of collateral
  1. When collateral provided by a securities borrower exceeds the required ratio, the borrower may apply for a withdrawal of collateral within the stipulated period through a securities firm by means of the TWSE securities lending system.
  2. When a securities borrower returns securities and applies to withdraw collateral, the TWSE must first confirm its receipt of the securities borrowing fees payable by the borrower before the collateral will be returned.
  3. Upon receipt of a securities borrower's application for a withdrawal, the TWSE will on the same day produce the relevant statements for return of the collateral, which will be carried out as follows:
    1. Cash: Cash will be transferred directly into the securities borrower's bank account on the following business day.
    2. TWSE and GTSM listed securities: The TWSE will notify the central securities depository on the same day or the following business day to transfer the securities into the securities borrower's central securities depository account.
    3. Bank guarantees: The original of the bank guarantee document will be returned to the securities borrower on the following business day.
    4. Book-entry central government bonds: Cancellation of the pledge registration will be carried out the same day or the following business day. After the clearing bank cancels the restricted transfer registration, the bonds will be transferred into the securities borrower's designated clearing bank book-entry government bond account.