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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 26     If a securities firm notifies a customer to cover a shortfall pursuant to paragraph 4 of the preceding article and the customer fails to do so, or does so only partially, within 2 business days from service of that notice, the securities firm shall proceed as follows:
  1. If a customer's overall account collateral ratio on a given day is still lower than the collateral maintenance ratio, dispose of its collateral beginning from the next business day under the mutatis mutandis application of Article 32, paragraph 1.
  2. If the customer's overall account collateral ratio rises and meets or exceeds the collateral maintenance ratio, the securities firm may temporarily refrain from disposing of its collateral. However, if the collateral ratio subsequently falls short again on any given business day, and the customer fails to take the initiative to pay additional collateral on that same day, dispose of its collateral beginning on the next business day under the mutatis mutandis application of Article 32, paragraph 1.
  3. If before the collateral has been disposed of under the preceding subparagraph, the sum of any successive collateral deposits made by the customer covers the shortfall of which it was notified, expunge the collateral call record.
  4. If a customer's overall account collateral ratio rises and meets or exceeds the initial collateral maintenance ratio, expunge the collateral call record.