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Article NO. Content

Title:

Operating Rules for Securities Lending by Securities Firms  CH

Amended Date: 2019.10.29 (Articles 8 amended,English version coming soon)
Current English version amended on 2018.12.24 
Categories: Securities Exchange Market > Borrowing of Securities
Article 15     When a securities firm accepts a customer's application to borrow securities, it shall collect collateral from the customer with a value calculated at an initial collateral ratio of not less than 140 percent of the auction reference price at market opening or the base price for first trading of the security on the given day, unless the customer is a professional institutional investor as defined in Article 19-7, paragraph 2 of the Regulations Governing Securities Firms and has otherwise agreed to an initial collateral ratio with the securities firm.
    The "auction reference price at market opening" or the "base price for first trading" in the preceding paragraph shall be determined pursuant to Article 58-3, paragraph 2 of the TWSE Operating Rules, or Article 60-1 of the GreTai Securities Market Rules Governing Securities Trading on the GTSM.
    A securities firm shall notify the TWSE or GTSM regarding the delivery information of the loan securities and the collateral securities (except for book-entry central government bonds), and forward such notice to the TDCC to immediately conduct the securities transfer procedures. The TDCC shall annotate the securities borrowed by customers. Central government bonds shall be handled using the title transfer registration method pursuant to the Directions for the Operation of Book-Entry Central Government Bonds.
    No transfer or withdrawal of securities that have been annotated is allowed unless for purposes listed under Article 10 of the Regulations Governing Securities Lending by Securities Firms.