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Article 37
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When a securities firm enters into a contract for an equity derivatives transaction in TWSE listed or TPEx listed stocks, the total sum of the number of shares of the underlying security that could potentially be deliverable upon exercise of the derivatives contract, plus the number of shares of the underlying security that would be deliverable upon exercise of all outstanding and unexpired equity derivatives contracts and the number of shares of the underlying security that are callable (putable) under all outstanding and unexpired contract-based call (put) warrants, of all securities firms, leverage transaction merchants, and banks as of the previous business day, may not exceed 15 percent of the total number of shares of the underlying security issued by the issuer after deduction of the shares set out in each of the following items:<br/>1. The total percentage of shares held by directors and supervisors under statutory shareholding ratio requirements.<br/>2. Pledged shares.<br/>3. The number of shares that newly TWSE listed or TPEx listed companies are required to place in compulsory central custody.<br/>4. Shares repurchased under the Regulations Governing Share Repurchase by TWSE Listed and TPEx Listed Companies, but not yet retired.<br/>5. Shares on which the competent authority has imposed restrictions for TWSE or TPEx listing and trading.
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