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Article 20
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Securities firms are required to obtain collaterals totaling no less than 110% of the market value of the lent securities (the initial maintenance ratio) when accepting customers' borrowing requests.
Customer is required to maintain a collateral maintenance ratio of no less than 105% for the borrowing period.
The collateral maintenance ratio is calculated as follows:
- Collateral maintenance ratio equals the collateral value divided by the indicative market value of the borrowed bonds, multiplied by 100%.
- Collateral value equals the indicative market value of bonds placed as collaterals plus cash collaterals.
The indicative market values mentioned above are determined using the daily quotations shown in TPEx's Electronic Bond Trading System.
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