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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 4     To apply to conduct securities lending business, a securities firm shall fill out an application form and submit it to the TWSE together with the relevant documentation. After the application materials are reviewed by the TWSE and the securities firm is found to be qualified and in conformance with the relevant provisions of these Operating Rules, the application shall be forwarded to the competent authority for approval.
    A securities firm approved by the competent authority to conduct securities lending business shall submit the following in document form to the TWSE for recordation and open a securities borrowing and lending account 2 days before commencing such business.
  1. Photocopies of the approval documents of the competent authority.
  2. List of supervisors and associated persons handling securities lending business and their certificates of qualification.
    The responsible persons and associated persons under the preceding paragraph shall register with the TWSE before they may conduct such business; for any change in those registered persons, a change of registration shall be carried out within 5 days.
    A securities firm in the first paragraph approved by the competent authority to conduct securities lending business shall amend the registration of its securities business items with the TWSE before commencing such business. In addition, the securities firm's business personnel that conduct such business shall possess the relevant qualifications prescribed by the competent authority in the Regulations Governing Responsible Persons and Associated Persons of Securities Firms.
    After a securities firm has been approved by the competent authority to conduct securities lending business, if its regulatory capital adequacy ratio is below 200 percent for 2 consecutive months, it shall suspend such business except the redelivery of securities, and may resume it only after the securities firm achieves compliance with regulations for 3 consecutive months and receives approval from the competent authority. If the securities firm has already been approved to conduct such lending but has not begun doing so, it shall suspend proceeding with such business.

Interpretation: